Welcome back to LUXE BLOG. Here we discuss the latest market trends. Lately? We’ve been posting TONS of content outlining a shift. It’s true, the Greater Phoenix real estate market is growing in inventory. Does that mean it’s dead? No way. From new home builders offering HUGE incentives and buying down rates to sellers making SIGNIFICANT concessions, we kinda like the market how it is. Balanced. While there will be doomers who doom. And hypesters who hype, we do neither. We simply tell it like it is. Then help our clients achieve success.
Below, we go all 17 cities/areas measured by the Cromford Report. All data is as of Nov. 2nd, 2023.
Understanding the pulse of the market is key.
Though the Greater Phoenix market is softening, it remains a smart place to buy real estate. Especially long term. Sellers are now more inclined to put forth their best property forward, often covering closing costs and offering other perks. This approach reflects a strategic adaptation to the changing landscape.
Quite often here on LUXE BLOG, we go over the Cromford Market Index aka the CMI. Provided by CromfordReport.com, The CMI lets us know if a market is in a buyer’s or seller’s market (or balanced). We can look at Greater Phoenix as a whole, or even get more granular. Today, we’re getting GRANULAR.
*All Data As Of Nov. 2nd, 2023
Looking deeper into the market’s behavior.
With mortgage rates slightly retracting from their peak, the buying climate has improved. However, the market is approaching a balance faster than anticipated, propelled by growing inventory and stabilizing demand. Sellers may need to weather a stormy season, with expectations of slower traffic and fewer, potentially lower offers.
Understanding the market means looking at the latest indicators. Here’s what they’re telling us:
The waves of change are coming ashore, and the data points to a storm brewing on the horizon. While the dip in mortgage rates offers a silver lining, it’s not a surefire signal of smooth sailing ahead.
Mortgage rates, the compass for many buyers’ decisions, have taken a turn:
Buyers may find this news encouraging, but the market’s current conditions suggest caution. Sellers, especially, should be vigilant as lower rates alone may not be enough to buoy the market.
The Cromford Market Index is a beacon for market trends:
Even as a seller’s market clings on, the index foretells a potential shift to a balanced, perhaps even a buyer’s market. As demand softens and supply gradually increases, sellers need to prepare for a possible change in course.
The market is shifting. Here’s what sellers might expect:
In this evolving landscape, sellers should steady their ships, perhaps delaying their sale if possible. Patience may be a virtue in the coming months as the market finds its new balance.
At Williams Luxury Homes, we are in the thick of the market every single day. Literally. With that said, we do not see everything falling apart. Arizona real estate is attracting wealthy buyers from all over the United States. Including Cali, Boston, Chicago, Seattle, and MANY more. of course thew market is going to even out. The pandemic was not normal. Homeowners are comfortable in their mortgages (low rates). With that said, obviously they are having a harder time selling. So buyers DO have more power than in a long time. With seller and developer concessions, we are seeing some clients get stellar incentives. For all we know, this is a golden era of buying. Only time will tell.