Hello everyone. Today, we will discuss Q1 and the market in general. The real estate market in Greater Phoenix has been seeing some positive signs in the past few months. Monthly sales prices, listings under contract, multiple offer situations, and the Cromford Market Index (CMI) indicate increased buyer demand. Let’s take a look, shall we?
According to recent reports, as of March 2023, the median sales price for Greater Phoenix is $413,000, a slight increase from $410,000 in January. This is encouraging news for the market. It indicates buyer demand is increasing. People hate hearing this, but right now that is what has been happening. Additionally, every the CMI for every city in Greater Phoenix went up over the past month except for Paradise Valley and Tempe, Arizona.
As of March 4th, there were 8,800 listings under contract in Greater Phoenix. This is an ENCOURAGING start to the year. In fact, it’s way better of a Q1 than we thought we’d have. The number of active listings on the market has also decreased by about 2,000 since the beginning of the year. Lastly, multiple offer situations are once again happening.
The Cromford Market Index (CMI) has been steadily increasing since mid-December and predicted the increase in house prices seen in February. This tool helps analyze future market trends. However, home prices have been steadily decreasing since May of last year, so it is essential to consider both measurement methodologies when interpreting headline numbers about home prices.
Interest rates are currently fluctuating due to uncertainty within the financial sector. Lower interest rates result in increased buyer activity and seller success. This is because listings go under contract faster than before. The inventory level is another crucial factor when analyzing the direction of home prices; if they continue to decrease, there will likely be increased competition.
February saw a surge of traditional homebuyers in Maricopa County, with individuals and married couples accounting for 87.76% of all homes purchased – an increase from 79.87% last year. This was counteracted by significantly fewer purchases from i-Buyers (20 compared to 369) and Institutional Investors (118 compared to 531). In line with this trend, American Homes 4 Rent reported that it sold more existing single-family homes than bought during the quarter – bucking the housing trends seen elsewhere across America’s booming markets.
With mortgage rates shifting sharply, the repercussions for affordability are profound and far-reaching. Homebuyers will soon feel the effects of this week’s changes when closings occur from late March to early June – a truly remarkable time in housing markets across America!
You can count on us when you’re ready to learn about the Arizona real estate market. At WLH, we always ensure our LUXE BLOG is updated with news, trends, inventory levels, and more. We want our readers INFORMED. And we point our regularly we ENJOY what we do. It’s fun. Why? Because. Do we really need any more reasons than that? Of course not. Have a good day, and thanks for reading.