This week the Cromford® Market Index table for the single family markets in the 17 largest cities is looking better for sellers everywhere except Cave Creek:
I admit that the change in Phoenix is also negative for sellers, but a change of less than 2% is hardly statistically significant. The West Valley is still improving fastest with most of the big movers located west of I-17:
- Buckeye +17%
- Peoria +8%
- Avondale +7%
- Goodyear +7%
Sellers in Paradise Valley and Fountain Hills get some relief at last from the discouraging trends of the past several month, and Queen Creek continues its improving trend.
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The CMI (Cromford Market Index) is an algorithm (formula) that tends to be an accurate short term market predictor. It essentially looks at the relative balance between supply and demand, though there's more that goes into it.
An index score of 100 = a relatively balanced market in terms of supply and demand.
Over 100 indicates demand exceeding supply, good for sellers.
Under 100 indicates supply exceeding demand, good for buyers.
A green button shows the arrow trend is favoring sellers.
A red button shows the arrow trend is favoring buyers.
Keep in mind the obvious - the most favorable trends - where demand is exceeding supply, are in the low to mid range priced areas.
The higher-end areas, most specifically, the NE Valley, are generally not lacking in demand so much as having a year-over-year supply (new listings) exceeding demand (new contracts).
The slightly improving trend in most of the NE Valley cities is the encouraging word.
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