Phoenix-Area Seller's Markets Expand Slightly as CMI Edges Higher

Once again, we are seeing small signs of improvement in the market for sellers in certain sub-markets. This trend is particularly evident in the changes observed in the Cromford® Market Index (CMI). Over the past month, the average change in CMI is +1.8%, slightly up from +1.7% last week. This gradual increase has been a mild but consistent trend that started five weeks ago, indicating a slow yet steady shift in favor of sellers in some areas.

Specifically, ten cities have shown an increase in their CMI over the past month, while seven have experienced a decline. Although this is less positive compared to the previous week, it still reflects an overall trend toward a stronger seller's market in select regions. This dynamic shift highlights the varying conditions across different cities, with some experiencing more favorable market conditions for sellers, while others lean towards buyers.

The cities of Paradise Valley, Peoria, Fountain Hills, and Goodyear have seen the most significant movement in favor of sellers, followed by Avondale. Conversely, Tempe, Queen Creek, Maricopa, and Cave Creek are the primary locations where the market is shifting in favor of buyers. Notably, Buckeye remains at the bottom of the table, but Maricopa is looking increasingly likely to take its place. Chandler, on the other hand, continues to lead at the top, indicating a robust seller's market in that area.

Currently, 11 out of 17 cities are considered seller's markets, with Paradise Valley recently joining this group. Additionally, two cities, Goodyear and Surprise, are balanced markets, while four cities are categorized as buyer's markets. This distribution underscores the diverse real estate landscape, where market conditions can vary significantly from one city to another, offering different opportunities for both buyers and sellers depending on the location.

Keep an eye on mortgage rates as this is currently the main driver of demand until we see other major economic events that could raise supply, or hurt demand further like massive job layoffs.

“If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.”
―Jim Rohn

Have a great week everyone!