Boom! There’s no other word for it. Right now, the housing market is a topic of heated discussion. The stats and debates are all over the place. But could we be standing at the edge of a buyer’s market, especially in Greater Phoenix? That’s what we’re breaking down today. Why? Because month-over-month, EVERY city in Greater Phoenix trended is buyers’ favor. And that hasn’t happened since mid 2022 or so.
Let’s kick this off by setting the scene. Nationally, surveys show that 84% of people think now is a bad time to buy a house. In Greater Phoenix, we’ll dig into the data to see if this sentiment holds true.
The key takeaway? While the national sentiment is glum, in Greater Phoenix, the story might be a bit different. Let’s see why.
The U.S. economy is showing mixed signals, and that’s impacting mortgage rates. Rates have surged towards 8% following a robust jobs report, but what does that mean for the Greater Phoenix area?
What you need to remember is that while the U.S. jobs market might be booming, it could have a ripple effect on mortgage rates, which in turn impacts the Phoenix housing market.
Now, let’s zoom into our neck of the woods—Greater Phoenix. Active listings are showing interesting trends worth dissecting.
What’s significant here? Active listings are rising faster than expected, suggesting sellers are starting to compete, potentially softening prices.
Here’s where things get really intriguing. While listings are going up, listings under contract are showing a downward trend. This imbalance hints at shifts in the market.
So, the market’s shifting gears. Greater Phoenix could be in a unique position for buyers, particularly if these trends continue.
With all these stats and shifts, you might be wondering, “Is this the time to buy in Greater Phoenix?”
Look, if you’re considering buying, especially during the holiday season, it might be a prime opportunity. However, the usual caveats apply: make sure it’s a long-term commitment and you can afford it.
The Cromford® Market Index (CMI) serves as a yardstick for the real estate market’s pulse in various cities across ‘The Valley’. When searching for real estate, one invaluable resource is the Cromford Market Index. This composite index is meticulously designed to gauge both the demand from buyers and the supply dynamics from sellers. It provides an encompassing picture of market health. By pulling data from 17 pivotal cities in the Greater Phoenix region, the CMI delivers a quick yet robust snapshot of individual area conditions. In essence, this index serves as a vital tool for understanding the overall market vitality. And it helps us as real estate professionals better PROTECT and INFORM our clients. And then negotiate on their behalf.
*Per Cromford Report as of October 11th, 2023
We’re still technically in a seller’s market, but these numbers indicate that buyers could gain some ground. In a nutshell, it’s a situation to keep an eye on.
The Cromford® Market Index (CMI) serves as a yardstick for the real estate market’s pulse in various cities across Greater Phoenix. The data is sorted by the highest CMI to the lowest for October 5, 2023. Here, each city is dissected based on its CMI and the monthly change.
*All Below Numbers Are As Of Oct. 5th, 2023
Despite a 25% decline, Chandler maintains the highest CMI.
Fountain Hills exhibits minimal change, losing just 1% over the last month.
Glendale has witnessed an 8% dip but remains in the top three.
Phoenix registers a 9% decrease but still sits comfortably in fourth place.
With an 11% decline, Paradise Valley still clinches the fifth spot.
Gilbert matches Paradise Valley’s 11% decrease but lags slightly in the index.
Mesa’s 16% decline is one of the steepest in this list.
Scottsdale sees a 9% reduction but retains its appeal.
Cave Creek records a decline similar to Scottsdale, dropping 9%.
Avondale marks a 10% monthly decrease but secures a top-10 position.
Peoria experiences a 7% slide, yet manages to hold its rank.
A modest 4% dip places Tempe just behind Peoria.
Surprise takes a slight 5% hit, further down the list.
Buckeye’s sharp 19% decline is alarming, causing it to plummet in rankings.
Queen Creek also witnesses a 9% reduction, settling towards the bottom.
Goodyear shares Buckeye’s drastic 19% fall, sinking to near the bottom.
Maricopa barely skirts the bottom, its 17% decline being the least among the lowest-ranked cities.
The overall trend indicates a general decline in the market across most cities. To stay abreast of these shifting dynamics, be sure to check out our LUXE BLOG regularly.
Finally, let’s break down how various cities in Greater Phoenix are doing based on their individual CMIs.
The absence of green arrows is glaring, signaling that the tables may be turning. For buyers, it’s a glimmer of light at the end of a very long tunnel.
If you’re thinking about looking into the Arizona real estate market, we’d love to know. It’s essential to know the market’s pulse. And right now, that pulse is saying, “Hey, pay attention; things are getting interesting!” When you’re ready, WLH will be here. Thanks for reading LUXE BLOG. See you next time.