Many in the bubblesphere have been watching as the number of active listings has exploded in the Phoenix area. The amount of inventory has nearly double since the beggining of the year.
The housing market in the Phoenix area is about to enter the meltdown mode as inventory continues to skyrocket. A t the very same time, the number of sales per months has fallen compared to last year at this time. The Dallas Morning News had this to report:
In the Valley, where used-home sales are down 34 percent from last year's record pace and below 2004's more normal pace, the slowing is likely to be more acute.Meanwhile, a large amount of new housing units continue to be built. Furthermore, the Phoenix economy is unusually dependent on the housing industry. It is a sad situation that the intense speculation of the past few years has inevitably brought the upcoming housing meltdown.
The median price of a used home in Pinal County fell to $211,500 in this year's first quarter. That's down from the $220,000 the typical existing home was selling for at the end of 2005.