Here’s this week’s chart (click the chart to enlarge; use browser’s back button to return)
I’ve done something this week that I should have done weeks ago: I flipped the color coding for certain ZIP codes.
Red still means “bad” and still shows market movement away from a balanced market. But in the grey-highlighted ZIPs we’re on the other side of a balanced market. There’s too little supply and too much demand in those ZIPs, making a strong seller’s market. Obviously in the rest of the ZIPs we track we’re still knee-deep in heavy duty buyer’s market.
If you continue the Econ 101 supply vs demand analogy, prices should start to increase in the gray highlighted ZIP codes. It’ll be really interesting to see if they do.
Anyway, here’s the chart showing the entire MLS statistics (click to enlarge; back to return):
I’m encouraged by the 6.08 number in the Months of Inventory column. At least in the ZIP codes we track here at The Phoenix Agents, things are much closer to normal than they’ve been in a long time. Don’t get me wrong, housing prices won’t be zooming up anytime soon. My best guess says there’s still some bottoming out to do. It’s likely we’re going to see the pendulum swing too far towards low prices, just like it swung too far towards silly-ridiculous high prices in 2006. I’m just encouraged to think that we may be on our way out of the woods instead of being on the way in.