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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ASK THE ATTORNEY: Is The Market Crashing or Correcting?

If you’ve been following the news lately, you have heard a lot about current housing market conditions. The main questions I get these days revolve around whether the market is crashing or correcting? Here's what you need to know. The housing market is changing compared to the last two years. However, what we need to remember is that the past two years were record-breaking in nearly every way. We had record-low mortgage rates and we had millennials reaching peak homebuying years, which significantly increased buyer demand. At the same time, there weren't enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis. This combination led to record-high demand and record-low supply, and that wasn't going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction.  Home Showings Then and Now The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It's a good indication of buyer demand.  The 2019 statistics provide a good baseline of demand before the pandemic. And while current buyer demand recently began to moderate slightly based on the latest data, recent showings are still above 2019 levels. Now, since 2019 was such a strong year for the housing market, this helps show that the market isn't crashing – it's simply at a turning point that's moving back toward more pre-pandemic levels. Let’s talk about Existing Home Sales Then and Now You may be reading headlines about how existing home sales are declining, but once again, perspective matters.  The pandemic numbers beat the more typical year of 2019 home sales. And according to the latest projections for 2022, the market is on pace to close out this year with more home sales than 2019 as well. It's important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong.  So what we have is today's housing market looking a lot like the 2019 housing market, which was the strongest housing market in a decade at the time. Bottom Line If recent headlines are generating any concerns, look at a more typical year like 2019 for perspective. What we’re experiencing now is not a crash or correction. It's just a turning point toward more typical, pre-pandemic levels.  Let's connect if you have any questions about our local market and what it means for you when you buy or sell this year.

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Best Cocktail Bars In The Valley

One of the Valley's best kept secrets is that it his home to world-class and award-winning mixologists. Arizona hosts its own cocktail weekend to showcase the best that we have to offer. There are a lot of must-try bars in the Valley ranging from cozy after-hours watering holes to themed experiential spots. Here are top 5 must-try places to try this coming weekend: Platform 18 Located at Central Grand in Phoenix, Platform 18 is a themed bar inspired by a vintage Pullman train car. As you step into the bar’s lobby, you’ll find yourself transported back into a turn-of-the-century train station. The train car seats up to 36 guests and takes passengers on a 90-minute ride through the Rocky Mountains - complete with props to make the window scenes true to life!  Fully outfitted train conductors in bowties and suspenders will take your order as you enjoy the snowcapped mountains whiz by. You can choose from a menu of 45 drinks that date back to the Prohibition era. How would you like a “Pocket Full Of Coins” and a “Dead Man’s Pocket Watch” - both are actual drinks on their Stirred menu! 36Below This newly opened speakeasy has become a favorite among the young crowd. The bar's creators, Josh Katz and Sheldon Wiley, are well-known hospitality leaders. The Garden of Gypsies cocktail is one of the best drinks. It contains butterfly pea flower-infused gin, Cocchi Americano, mushroom reduction, jicama, celery root and lemon juicein a mushroom shaped cup. AZ88 The Valley's go-to martini hotspot, AZ88, has been around since ’88. The bar's must-try is definitely Pornstar Martini for a sweet vanilla cocktail with a shot of champagne. The local favorite is Instagram-worth and even recently unveiled a can’t-miss new disco ball art piece. Stardust Pinbar Stardust Pinbar is a pinball lounge that serves rock-and-roll-inspired drinks. Its ultra-glam decor is a tribute to and the cocktail menu is inspired by Ziggy Stardust. If you manage to find its secret entrance, you'll be greeted by retro art on the walls, a light-up dance floor, and lots and lots of neon. The White Rabbit This swanky speakeasy required a password for entry. The White Rabbit is inspired by the Prohibiton Era and is decorated with vintage photos and elegant furniture. It serves a roster of ornate cocktails and small bites to match.    To find more new and interesting places to eat and drink in the Valley, make sure to subscribe to our newsletter. If you're interested to know more about the Valley or thinking of buying or renting, get in touch with us today!    

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