Phoenix Housing Market Tilts Further Toward Sellers as Supply Shrinks

Over the last six weeks, the Greater Phoenix housing market has been steadily shifting in favor of sellers. Supply continues to shrink while demand rises, and this week's average monthly change in the Cromford® Market Index (CMI) is up 9.4%. While that’s only a slight increase from last week’s 9.3%, it marks continued momentum in a direction that benefits sellers.

Fifteen cities across the Valley have improved for sellers over the past month, with only two, Maricopa and Tempe, improving for buyers. Some of the biggest month-over-month gains have been seen in Fountain Hills, Cave Creek, and Scottsdale, with active listing counts tightening and buyer activity creeping upward. Paradise Valley, which has been leading this shift in recent weeks, appears to be slowing slightly in its rate of improvement.

Other cities showing significant movement include Avondale, Gilbert, Chandler, Peoria, and Surprise, all of which have improved more than 10% for sellers. This broad base of upward movement is helping to shift the market overall, even as demand remains relatively low by historical standards. A tighter inventory picture, combined with a slight dip in mortgage rates, is giving remaining sellers more leverage in negotiations.

As of now, 6 cities are classified as seller's markets, 4 are balanced, and 7 are still buyer's markets. It’s a mixed bag, but the momentum is clear: if supply keeps trending down and interest rates remain stable or decline further, the landscape could continue to tilt in favor of sellers heading into the fall season.

“You have to fight to reach your dream. You have to sacrifice and work hard for it.”
— Lionel Messi

Have a great week, everyone!