In today’s LUXE BLOG, we’re going to go over U.S. Housing news and the LATEST DATA regarding Greater Phoenix’s real estate market. As we always make clear, we’re upfront. We’re not here to just paint a pretty picture. Yet while the front half of this article may sting, the back half is fairly good for Greater Phoenix. MAKE SURE to see the City By City section. Lots of good stats there. Let’s get into it.
FULL STATS FOUND BELOW
Before going over data, we want to talk about how we look at it. CromfordReport.com is a leading market data company here in ‘The Valley’. They’ve been the go-to company for statistics for a long time. They use what is called The Cromford Market Index (CMI) to gauge the market. Using data from 17 major cities and/or municipalities in Greater Phoenix, they break down seller demand, buyer demand, the overall market health, and each area’s overall health individually. The collective of all these factors make up the CMI.
The overall CMI and individual CMIs go as follows – 90 and under = buyer’s market. 90-110 = balanced market. 110+ = seller’s market. The higher the number above 110, the stronger of a seller’s market we are in. Back during the pandemic boom, the overall CMI almost hit 500! That was NOT sustainable. At that number, the market was appreciating at up to 35% a year. What happened was a ton of people bought homes here with VERY LOW rates. Now they have lots of equity, a low rate, and not much motivation to sell. Meanwhile, buyers are facing high interest rates and low return.
As of 9/20/23, the overall CMI was 149.4. Remember, anything over 110 is considered a seller’s market. However, the CMI has been dropping a bit as of late. And when we look at the 17 individual areas, the pace of the drop has increased a bit. With that said, WE EXPECTED THIS. Southern Arizona’s real estate market dominated during the pandemic. Of course things are going to even out some. In many ways, our market is healthier than it has been in a long time. And while we need rates to come down and more seller’s to become motivated to sell, the main driving factor of our somewhat stable market is a lack of new inventory.
Also, as of 9/20/23, the Supply Index was 50.6 while the Supply Index was 75.6. In both of these indicators, 110 would be considered “normal”. Basically, demand is down, but supply is WAY down. And both are below normal.
Also Read: What Is It Like To Live In Arizona?
Below is a list of the main 17 cities and/or areas measured (strongest to weakest). What is interesting to note is although Chandler is the strongest, it also fell the MOST month-over-month. This is a FANTASTIC example of how hard real estate markets are to predict.
Also Read: Things To Know About Arizona
Recently, Williams Luxury Home became our own brokerage! Since our conception, we were a team at another firm. But now, as of September 19th, we’re our own firm. And that fires us up. Why? Because it reflects our dedication. A dedication to a craft known as luxury real estate. We know this market. And we know how to protect OUR CLIENTS. Via our 150+ years of combined experience and DEEP connections in cities such as Scottsdale and Paradise Valley as well as across this state, we make sure GOOD THINGS happen for our clients. That’s what we do. See you next time.