Sunday, June 7, 2020

AZ Market Turn Around

Once again, here is our table of Cromford® Market Index values for the single-family markets in the 17 largest cities:
cmi-2020-06-04.gif
The turnaround in the direction of the market is enough to make your head spin. We now have 13 out of 17 cities improving for sellers, most of them at a very fast rate.

We note that the 4 cities that have not improved for sellers over the past month are all higher priced parts of the valley. All four of them have started improving for sellers over the past week or two. Paradise Valley remains in a balanced market but all the others are seller's markets.


Among the smaller cities we do have one example of a mild buyer's market - Sun City. The age restricted market has been hardest hit as a large percentage of their population is vulnerable to COVID-19 and many are probably sheltering in place.

The general market below $600,000 is now booming and supply is dropping very fast.

______________________

Decoding the chart above:

The Cromford Market Index (CMI) is a proven short term predictor of the market. Essentially it's an algorithm that looks at the relationship between supply and demand.

A score of 100 = supply / demand balance
Over 100 = more demand than supply
Under 100 = more supply than demand
Green arrow up = trending in sellers favor
Red arrow down = trending in favor of buyers

No comments:

Post a Comment