Phoenix Real Estate Inventory Low

The national real estate boom has finally reached the Southwest, with Las Vegas and Phoenix seeing the largest price increases and development.

Considering the size of the area, Phoenix real estate inventory is fairly low. Realtor.com claims that out of the 500,000 housing units in the area, only 2,700 of them are on the market, putting the available Phoenix real estate inventory at 0.5 percent.

Low inventory has developers dying to fill the desert with Phoenix real estate. People are beginning to worry that with all of the planned development for the area there will soon be an oversupply of Phoenix real estate, but it may calm them to know that there are large limitations to this new development, namely a limited water supply.

For now, developers have limited themselves to filling in vacant pockets with new Phoenix real estate, including "`urban condos´ that command $300,000 for 800 square feet," and there are currently 60,000 units of residential Phoenix real estate "under construction in and around the city."