Basically it comes down to the supply and demand theory of economics. Currently we are experiencing an increase in supply of homes on the market and a decrease in number of homes being sold on a monthly basis.

This is currently resulting in a flattening out of market prices. Should this trend continue we can see prices drop. The increase in inventory of homes for sale has resulted in an adjustment up to a normal inventory, so no need to panic. We have experienced a shortage of homes for sale in the spring selling seasons of 2011 and 2012. This has resulted in sharp price increases.

total inventory

Monthly sales

Back in October we mentioned due to the government shut down that the market was changing, click on this link to read that blog. https://relocateaz.com/2013/10/how-the-government-shutdown-has-affected-arizona-housing/

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