Phoenix Real Estate has witnessed a huge bust followed by strong investor buying. According to the Arizona Regional Multiple Listing Service (ARMLS) reports, inventory of the real estate business has been slashed by 5.5% year-over-year, though managed 8.7% increase in year-over-year overall sales in 2015. Meanwhile, cash sales to frequent investors have been reduced to 27.4% over total sales.

More inventories and less investor buying have caused reduction in prices during 2014. But in 2015, prices have been increased by 5.3% through November with fall in inventory. This increase may be compared with 2.4%, which has been recorded during 2014. The increase has been accounted as double compared to that in 2014, reports Calculated Risk citing the Case-Shiller as the source.

The Phoenix market has been hit hard with the crash of housing industry. With recent increase in demand due to insufficient inventory, the real estate company expects an influx of multifamily developments in the area.

2016 has appeared as booming year for Phoenix since it has managed to sell the highest volume since 2013 and the third highest since 2006. The real estate seller's market in 2016 has been fueled by the lack of inventory rather than increased demand by buyers. No new home construction during the last seven years has caused the fueling, analyzes MarketWatch.