The Real Estate Market Is No Longer In A Frenzy
Every week I give you a look at the real estate market and this week is a really important update– the market has changed dramatically in the past 14 weeks. So what does that mean for you? Let’s hit five key points for you.
SELLERS MARKET NO LONGER A FRENZY
Though the entire Valley still remains a very strong, some would even say “Hot” Seller Market, after 2 years of sellers having the significant upper hand, it probably feels more like a balanced market to many, which is good news for buyers, who may now have a chance to get into a home and spend some time before making an offer.
INVENTORY CHANGES
There was a significant surge in new listing in the last 2 months, up about 12% over May and June of last year. I think sellers feared a significant downturn and decided to list quickly. So what has that done to the market?
AVERAGE DAYS ON MARKET
Prior to mid May 8 days and now about 12 days on market.
PRICE INCREASES AND PRICE DECREASES
There has been a huge spike in listing price reductions in the last two months, matching now pre-pandemic levels. Homes on the market as the market shifted… now are coming down a bit or being reduced, before they sell. This is likely a combination of sellers still holding onto old market data from 4 months ago, and/or uninformed agents thinking they can still push prices that in many cases were astronomical. It shows us when you price a home based on what the market is doing and not a pie-in-the-sky number, we are still seeing a small rise in prices. But not as dramatically as we once were.
The Cromford Market Index IS HEADING BACK TOWARD CENTER
A balanced market of supply vs demand is a CMI of 100. Phoenix is now 210… the lowest it has been since June ‘20. Buckeye is the lowest at 131 and Fountain Hills is the highest at 306. Scottsdale is 280 - down 33% from last month! If it continues at this pace we will see a balanced market for Greater Phoenix in August, and other markets between the end of the summer and next Spring. (however keep in mind, that as price increases slowly, interest rates rise. So if your financing it could get more expensive not less over that same time)
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Connie Colla
Associate Broker, N. Scottsdale Branch Manager | License ID: BR656708000