Recently, it was announced that the GDP had outpaced expectations and grew by 2.6% in Q3 of 2022. That’s the good news. The bad news is that this info will likely give the FED the sign they need to raise rates once again on November 2nd, 2022. Most expect a 75 basis point increase but we will have to wait until tomorrow to see.
Using data taken from CromfordReport.com, a leading local data company that crunches MLS numbers, we once again bring you a weekly update. If you’d like to compare the data from this post to past updates, you can check out all of our blogs with the tag “statistics” or you can simply go to last week’s Greater Phoenix Real Estate Stat Update.
Among other data, Cromford Report measures supply and demand to create what is called the Cromford Market Index (CMI). We not only take a look at the overall health of the local market here in the Phoenix Metro, we also look at the health of each of the 17 measured cities/areas. 90 and under = buyer’s market. 90-110 = balanced market. 110+ = seller’s market.
On 10/30/22 the Supply Index was 82.0 while they Demand Index was 77.8. As you can see, supply is now just slightly higher than demand. As of 10/30/22, the overall CMI was the entire Greater Phoenix Area fell to 94.9 (down from 96.4 on 10/26).
*Please note, the percentages to the right of the CMI score is the comparison of how much each city/area’s CMI fell percentage wise over last month’s core.
Our local real estate market continues to fall into buyers’ favor. With that said, interest rates are too high for most people to afford a home right now. Here’s the thing though, we’re ALREADY seeing some sellers bend pretty far. The primary key is to realize that most homeowners are VERY comfortable in their loans and with the equity they have gained. This is a KEY difference from 2008.
Hopefully, as rates continue to take away buyers interest and once rates go down a couple percentage points, the market will EXPLODE with opportunity. Only time will tell. For now, they only thing we CAN say is that we tell it like it is. The data above is fascinating to say the least. We here at Williams Luxury Homes geek out on stuff like this. Why? It empowers us with deep knowledge that sets us apart from the competition. If you’d like to know if buying real estate in Arizona is the correct things for you to do, feel free to let us know!