12/10/2024
🏡🌵 Monthly Phoenix market assessment...
Thanks 😊
🛑 THE BOTTOM LINE:
Greater Phoenix is a Buyer's Market, but real estate is local and currently 1/3 of the largest Valley cities favor the buyer, 1/3 are neutral, and 1/3 favor the sellers.
The outlying areas of the Valley are the most favorable to buyers, where there is downward pressure on pricing.
🔑KEY MARKET FACTORS
🔹NEW CONTRACT ACTIVITY: This remains as very positive news and a continuing trend. For the month of November, there were 8% more new contracts than in '23.
🔹SALES ACTIVITY: This is probably the best news this month! Sales outpaced the previous 2 years for the 2nd straight month.
🔹SALES PRICES: This remains the same at 2% YOY increase. Very acceptable given the macro economics. I foresee this will increase in coming months.
🔹AVAILABLE HOMES: Inventory continues to swell, and is the primary reason for the Buyer market as demand is below normal.
🔹LISTING SUCCESS RATE: This is an interesting stat, and currently 69% of listings sell. This has been dropping for most of this year as inventory has risen.
🔹SELLER CONCESSIONS: This remains very high at 53%, with sellers contributing an average of $10,000 at the closing table. I suspect that this is often for buying down the interest rates still.
🔹DAYS ON MARKET: It's clearly taking longer to sell that last year, but remains at a somewhat historical norm.
🔹OVERALL BUYER MARKET: The Cromford Market Index (a leading indicator of our market condition), has continued to slowly drop over the last 7 months and now sits at 87, which is a Buyer's Market (Balanced is between 90-110). More granularly, there are 6 cities around the Valley in a Seller market, 6 that are Balanced and 5 that are a Buyer market.
Let's get your questions answered and set that plan for your real estate move in 2025!