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Well, this is the 2nd week in a row that we've moved in a 'bad' direction. As a recap, the "goal" if there is one in a real estate market, is balance. Most experts, forecasters and Realtors use 6 months' inventory as a guideline for a balanced market.
)Months of inventory is a measure of how long it would take to sell every home currently for sale, if no more homes were listed for sale and if sales continued at the same pace. If there are 30,000 homes for sale and 5,000 sold in the past 30 days, you're at 6 months' inventory because 30,000 divided by 5,000 equals 6.)
ZIP code 85012 has been truly hammered by a combination of factors: Light Rail construction, generally aging homes, the overall bad real estate market and economy. The months of inventory number in this ZIP is so wildly out of line with the rest of the territory included in the chart that I've excluded it from the "average" numbers at the bottom of the chart.
Excluded from the average calculation they may be, but properties in this ZIP code represent an incredible buying opportunity. Sellers here are likely to be increasingly anxious to actually sell, prices have dropped dramatically in many areas and rents - while wobbling a bit - are often enough to make an investment property cash flow immediately.
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