This post should resonate with the home seekers out there having a hard time finding the right property or missing out because of multiple offers. This is a sign of the times unfortunately… With banks regulating the flow of foreclosure listings and an increased flow of buyers to the market place, inventory levels are on the downward trend and are anticipated to continue dipping through the fall.
Click on the chart to view a larger image.
As you can see, the number of active listings was on a month over month downward trend with a view areas of level inventory. Pending and closed sales aren’t particularly encouraging, but are still holding steady given the season swing to the Casa Grande market. We anticipate seeing a rise in the pending and closed sales from November through to late spring, and possibly early summer.
In fact, let’s compare the months supply of inventory for the past year. In September 2010, the Casa Grande area had a 6.2 months supply of inventory and at the end of September 2011, we’ve dropped to a 3.3 months supply. The months supply of inventory is determined by the number of sales per month divided by the number of active listings. Meaning that if sales continued at the same pace without new listings coming on the market, it would take 3.3 months to sell out. The numbers on what constitutes a normal market vary, but typically a 1 to 3 months supply is a sellers market, a 4 to 5 months supply is a buyer’s market with anything over 6 months being a buyer’s market. The past few years have been buyer’s markets, but it appears that it’s the seller’s turn.
Click on the chart to view a larger image.