Are real estate prices droping?

[Jimmy Rojas]

Hey everyone, i live in Phx,az and very frequently check out the MLS portal for real estate in Az, recently looks like there is a drop in asking prices and houses are not being swept off the market as fast as before, what is the reason behind this and could it be expected that the prices will drop even more, there is a lot of contradicting information on the matter, what liable place do you all recommend to get accurate info. Thank you.

[Rick Albert]

I would take a look at the "Month's Supply." This is an indication of how many months it would take for all of the inventory to sell. Anything less than 6 months is considered to be a Seller's Market and anything over is expected to be a Buyer's Market. That will give you an indication of how the market is doing. 

For example, in Los Angeles County it is hovering around 1.6 month (has gone up slightly). We would need more than 3x the inventory just to be balanced. That tells me that it is going to be a hot minute before we see prices drop (overall as each sub market tells a different story).