Here is an interestng article about the inventory levels of homes, with a specific reference to Phoenix. Note what Zillow has to say about the number of sellers waiting to jump into the market.
The article, Real estate’s new problem: Not enough homes, from CNNMoney.com, reports that in some areas real estate agents are complaining that they don't have enough homes to sell. There is currently an eight-month supply of homes on the market -- meaning that, at the current sales pace, it would take eight months to run through the backlog. That's still a lot compared to the six-month supply that is expected in a normal market, but it is much better than it was. In some areas, supplies are even bidding-war tight. In Denver, for example, supply has fallen to 5.7 months from 6.2. In Phoenix it has declined to 4.5 from 5.2; and in San Francisco inventory has halved, to 3.2 months from 6.5 last March. Never have there been so many properties that could be for sale -- but aren't. This so-called "shadow inventory" comes from two main sources: properties lenders have not yet repossessed or have not yet put back on the market; and homeowners who want to sell but who have refrained because of low prices. Lenders are also holding back on foreclosing at all, either because they're having trouble handling the volume of repossessions or because they want to sell off some of the inventory they already have. Zillow surveys indicate there's a big pool of homeowners who have wanted to sell their homes during the past three years but market conditions either prevented sales or kept them from trying. The company estimates that 8% of homeowners are very likely to try to sell their homes in the next twelve months if they see signs of improvement in their local markets. "These sidelined sellers closely watch the market for signs of a possible turnaround and rush in if there's a hint of good news," said Stan Humphries, chief economist at Zillow.com.
NOTE THE "QUOTE" NEWS ARTICLE FROM KEVIN NEWELL, EQUITY TITLE TEMPE
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