We often point out that "days of inventory" is one of the most powerful and predictive measures in the housing market.  By using the annual sales rate we get rid of seasonal sales trends and the lower the number gets the stronger the market is for sellers.

Let us compare the days on inventory for the entire market (all areas & types on ARMLS) for the week of November 14-20, 2016  for every year back to 2002 and rank the years by how favorable they were to sellers.

Year - Days of Inventory

  1. 2004 - 45.2
  2. 2005 - 83.7
  3. 2012 - 95.3
  4. 2011 - 98.6
  5. 2016 - 104.6
  6. 2003 - 106.9
  7. 2015 - 111.3
  8. 2013 - 114.8
  9. 2014 - 134.4
  10. 2002 - 142.8
  11. 2009 - 164.8
  12. 2010 - 186.9
  13. 2006 - 227.3
  14. 2008 - 361.6
  15. 2007 - 373.8

So we are in the 5th strongest year for sellers. 2004 and 2005 were very bubbly and 2011 and 2012 were during the coiled spring bounce back. This is best normal year for sellers of the last 15 years.


Source | The Cromford Report is chalked full of interesting data and statistics for residential real estate in the Valley of the Sun.