For a while I’ve been noting the low inventory of homes for sale in Paradise Valley.
Since the end of Q3 2011 that’s been turning around a little. In November 2011 I noted it Paradise Valley active for sale as 291. Today fully active for sale in PV sits at 321. So in just over 2 months thats a 10% gain in active inventory.
What Does Rising Inventory Mean?
In a normal market. Increased supply has a downward impact on prices. Sellers need to be more competitive on price to beat out attention from other sellers. This squeezes price lower. If you look at the huge rise of inventory from 2008 this had that effect on prices.
Today’s Paradise Valley real estate market is not normal. Inventory is artificially low. Simply because many people have held homes off the market until they saw the market start to recover. This is known as the price elasticity of supply, as prices rise more sellers enter the market.
The increase of inventory similarly may not have any downward pressure on prices, prices look stable to positive. What will rise though is days on the market. So if you are a seller be more concerned that the increase in supply will make your home sit on the market longer rather than need price reductions to sell.
Selling Your Home In Paradise Valley
I see the increase in inventory as a sign of confidence. A market indicator. People who were not forced into selling in the downturn and waited on the sidelines are back. Ready to go back in to the market.
Some people are using the downturn to up their overall exposure. Not a bad strategy.
What ever your reasons for deciding to sell at this point just feel confidence from the fact you are not alone. Heading into the traditional Arizona selling season now is certainly a good time to list to catch out of state buyers.
If you need some help selling you Paradise Valley home just give me a call.