Market Update November 25th, 2024

Over the past month, six large cities have shown an increase in their Cromford® Market Index (CMI), continuing the trend observed last week. The average change in CMI across all cities is a decline of 4.2%, which is a slight improvement compared to the 4.8% decline seen the previous week. While the market continues to deteriorate for sellers, the pace of decline has slowed, indicating a potential stabilization in some areas.

Fountain Hills experienced the most significant decline, losing 28% of its CMI over the past month. This dramatic drop caused Fountain Hills to relinquish its position as the top performer, with Chandler taking the lead. Alongside Chandler, Cave Creek has emerged as one of the strongest performers in the market. These shifts highlight the variability in market dynamics among different cities.

In other notable changes, Peoria, which had previously been improving, has reversed course and is now experiencing a decline. Meanwhile, Paradise Valley has shown resilience, bouncing back after recent deterioration. Despite these positive changes for some cities, several others, including Buckeye, Surprise, Maricopa, Scottsdale, and Mesa, have seen substantial declines in their CMI, each deteriorating by 7% or more over the past month.

Overall, the market landscape reveals a mixed picture. Seven cities remain seller's markets, though five of them are categorized as very weak seller's markets with CMI values below 117. Additionally, five cities are now in a balanced market, while another five have shifted into buyer's market territory. This distribution underscores the ongoing shifts in market dynamics, with conditions varying significantly across the region.

As rates hover around 7% we should see seller leverage in certain areas until the new year after the holidays are over with as many buyers seasonally stopping their plans of a purchase right now. If we have any significant drop in rates like we did in October well then that might change some things! 

"Before anything else, preparation is the key to success"
— Alexander Graham Bell

Have a great week everyone!