Market Update November 18th, 2024

Over the past month, six large cities have shown an increase in their Cromford® Market Index (CMI), marking an improvement from last week when only five cities were trending upward. Avondale's shift in direction accounts for the rise of additional cities. Meanwhile, the average change in CMI over the past month is -4.8%, slightly better than last week’s -5.0%. While the market continues to deteriorate for sellers, the pace of decline has marginally slowed.

At the top of the market, Fountain Hills has been the worst performer, experiencing a sharp 24% drop in its CMI over the last month. Buckeye, Paradise Valley, and Surprise also saw significant declines, with deterioration exceeding 10%. These numbers reflect a challenging environment for sellers in these areas, with reduced demand or increased competition weighing heavily on their ability to negotiate favorable deals.

Conversely, Chandler, Tempe, and Cave Creek have shown promising growth, each recording CMI gains of 6% or more. Other cities showing upward momentum include Avondale, Peoria, and Phoenix, which have moved into positive territory. These areas provide sellers with improved conditions, signaling greater demand and fewer obstacles in achieving favorable sales outcomes.

Overall, the market landscape remains diverse, with seven cities categorized as seller’s markets, five as balanced, and five as buyer’s markets. Among the latter group, all five cities at the bottom of the table have seen declines of 6% or more, underscoring the significant challenges sellers face in these areas. This dynamic highlights the varying degrees of negotiating power across the region, where market conditions are increasingly influenced by location-specific factors.

With mortgage rates not expected to change drastically heading into 2025, we will more than likely see a revolving change in demand from city to city month over month as each group of buyers swarm to find the best pricing possible with the best quality home as well. 

‘There are only two tragedies in life: one is not getting what one wants, and the other is getting it.’
– Oscar Wilde

Have a great week everyone!