So, by now, anyone who reads LUXE BLOG knows we here at WLH keep our eyes and ears open. And while we don’t look at EVERY stat and figure every single week, we DO stay in the know. In today’s post, we will share the latest stats as well as give a short, end summary of what we feel is going on. Simple. Easy. Educational 🙂
We posted our last market analysis on January 24th. In that article, we mentioned how interest rates had come down for several months straight. We also talked about how an approx. 6,700 listings went under contract in the first 3 weeks of 2023 (that’s a ton). We were encouraged as inventory had yet again shrunk as well (a several-month trend).
Basically, while in no way is the market what it was for sellers back in 2021 and early 2022, it is STILL a SELLER’S MARKET. However, since last month’s update, the correction seems to be slowing.
As we often explain, the CMI is used by Cromford Report, a leading data company. In a nutshell, the CMI indicates a market’s overall health. Anything below 90 is a buyers market, 90-110 is balanced, and 110+ is a sellers market.
As you can see, supply is shrinking and demand is rising. We will talk about that in our end summary.
Out of the 17 individual cities measured such as Paradise Valley, Scottsdale, Gilbert, Phoenix, Goodyear, and the like, 9 were in favor of sellers, 4 were balanced, and 4 cities favored buyers. As of Feb 19th, 11 cities favor sellers, 2 are balanced, and 4 favor buyers.
Earlier, we mentioned shrinking supply and increasing demand. That doesn’t mean all is dandy. Greater Phoenix is barely in a sellers market. Not to mention, rates have yet again been going up. We can ALREADY see this affecting the market. Another issue is there isn’t a clear end in sight for inflation. Basically, there’s just a ton of uncertainty.
For all the hype on a crashing market, Greater Phoenix has yet to see it. We CAN tell you people are buying and selling real estate in the Grand Canyon State. Guess what else? Many are doing it with great success. How 2023 will turn out is anyone’s guess. We will be here, helping our clients SUCCEED.