Market Update February 17th, 2025

The real estate market continues to show signs of weakening for sellers compared to the previous week. Currently, 15 cities have seen a decline in market conditions over the past month, with Mesa and Gilbert now joining the 13 cities that were already experiencing deterioration. In contrast, only two cities have shown improvement, and that improvement is minimal, at just 1% in both cases. The average decline in the Cromford Market Index (CMI) over the past month has worsened to -8.0%, compared to the -5.5% decline observed last week.

Some cities are experiencing sharper declines than others, with Fountain Hills leading the way at a 21% drop, followed by Maricopa at 16% and Paradise Valley at 14%. Glendale and Avondale are also seeing significant downturns, with decreases of 12% and 11%, respectively. These declining trends indicate a shift in the market that is making conditions less favorable for sellers across many key areas. If this trend continues, sellers may face increased difficulty in securing strong offers and favorable contract terms.

Despite the widespread decline, the market remains varied in different cities. Currently, seven cities are still classified as seller’s markets, while five cities have reached a balanced state, and another five have shifted into buyer’s markets. This distribution suggests that while selling conditions have weakened in many areas, there are still pockets of strength where sellers have the advantage. However, with continued shifts in supply and demand, these classifications could change in the coming weeks.

One potential bright spot is the slight increase in demand following the conclusion of the Super Bowl. However, this increase has not yet been enough to offset the growing supply, which continues to rise at a faster rate. For sellers to truly benefit from any uptick in demand, the supply trend must slow down and ideally reverse. Until that happens, the market will likely remain challenging for those looking to sell their homes, and further declines in CMI could be expected.

 “Quality means doing it right when no one is looking.”
-Henry Ford

Have a great week everyone!