Up-To-Date Statistics

Hello readers. Are you ready for good content? As your boutique real estate team in Scottsdale, Williams Luxury Homes is here to keep you informed on the latest trends and happenings in the Greater Phoenix market. Today, we’ll discuss the most recent real estate data, mortgage rates, foreclosures, yada, yada, yada. For those wanting the Arizona real estate market to crash, the data simply doesn’t support such event happening right now.

The Fed and Mortgage Rates

• Last week, the Federal Reserve raised the federal funds rate by 25 basis points
• Despite the rate hike, mortgage rates have actually been falling
• Mortgage rates are influenced by the bond market, not directly tied to the federal funds rate
• Lower mortgage rates mean more buyer activity and better conditions for sellers

Market Activity and Home Seller Concessions

• Increased buyer activity has led to fewer concessions from sellers
• With rates lower and competition higher, sellers have less incentive to offer concessions

Local Market Update: The Cromford Market Index (CMI)

• The CMI helps gauge supply and demand in the Phoenix area
• A number above 110 indicates a seller’s market; below 90, a buyer’s market
• The current CMI is 82.7 for demand and 39% below normal for supply
• Supply remains the main issue in the market

City-by-City Market Analysis

One city, Goodyear, is in a balanced market, while the rest are in a seller’s market. Only two cities experienced negative changes month over month: Paradise Valley and Tempe. Three cities are in a buyer’s market: Queen Creek, Maricopa, and Buckeye. Below are the latest CMI’s with month-over-month percentage changes.

• Chandler 222.9 +24%
• Fountain Hills 189.6 +9%
• Glendale 177.1 +14%
• Phoenix 175.4 +14%
• Gilbert 168.7 +22%
• Avondale 158.2 +5%
• Mesa 154.8 +10%
• Cave Creek 141.2 +12%
• Scottsdale 139.0 +11%
• Peoria 136.1 +16%
• Tempe 130.2 -5%
• Paradise Valley 112.7 -16%
• Surprise 111.8 +12%
• Goodyear 104.6 +12%
• Queen Creek 84.7 +6%
• Maricopa 72.7 +9%
• Buckeye 67.2 +5%

Foreclosures: Should You Be Worried?

• Currently, there is not a significant risk of a foreclosure crisis
• Notice of trustee sales (foreclosure notices) are at low levels (just above 1,000)
• The market can absorb up to 10,000 pending foreclosures
• If pending foreclosures exceeded 8,000, it would be a cause for concern (we are FAR off from that)

To Sum It Up

So there you have it, the latest on the Greater Phoenix real estate market. With mortgage rates falling and buyer activity increasing, it’s an interesting time. We are glad to see foreclosures and new inventory low. Williams Luxury Homes is always here to guide you through this ever-changing landscape. If you read our Greater phoenix real estate blog, you know we are ALWAYS adding new data. Stay tuned for more updates shortly.