Curious about what is happening in the Arizona Real Estate Market? Below is an update based on real data...not sensational news headlines.

With interest rates noticeably higher than in January, there is less enthusiasm in the air from Buyers. There were only 1,822 new contracts accepted last week, noticeably lower than the previous 2 weeks which were all around the 2,000 mark.

On the other hand, Sellers have turned down the rate of new listings coming to the market. Demand and supply are both weakening from the same interest rate movement.

The result is that we still see the market balance moving in favor of the Seller which will help support pricing. The volume of transactions will not rise as quickly as it would have if rates had stayed as low as January. We are still seeing increased closed transaction rates, as you would expect for the time of year. The listing success rate has also recovered and now stands over 70%, consistent with a healthy market.

Basically, the correction in pricing looks to have run its course and we are now back to a normal market, far less frenetic than we experience between 2020 and 2022.

Here is our latest table of Cromford® Market Index values for the single-family markets in the 17 largest cities.

Fountain Hills remains in first place, for now, with Chandler close behind. The rest of the Northeast Valley is clearly deteriorating for Sellers, especially Paradise Valley where supply is rising and demand falling. The rest of the Central Arizona market continued to improve for Sellers over the last month. Top areas include Tempe, Glendale, Avondale, Gilbert, Queen Creek, Goodyear, Phoenix, and Mesa, all locations where the Cromford Market Index (CMI) increased by 24% or more.

Higher mortgage rates since January are starting to slow the recovery in demand, but they are also discouraging potential Sellers. The net effect is still positive, but the return to normal volumes is going to take a little longer than it appeared two weeks ago.

We still have 4 cities in a Buyer's market, with 2 in balance and 11 in a Seller's market.

Cromford Market Index™ is a value that provides a short-term forecast for the balance of the market. The market index number is derived from the trends in pending, active, and sold listings compared with historical data over the previous four years. If the market gauge is over 100, it indicates a Seller’s market. Below 100 indicates a Buyer’s market.

Investors continue purchasing single family homes, and in some areas, we are experiencing multiple offers due to low supply. This doesn't necessarily translate to offers way over the asking price, or Buyers waiving appraisals as we saw in the frenzy, but there is definitely competition for the great homes that are priced well. If you have questions about your specific area, let's chat! PERSPECTIVE REAL ESTATE GROUP

Arizona Real Estate Market: The Cromford Market Index - Cari Gilil...