Cromford Daily Observation - Once again, here is our table of Cromford® Market Index values for the single-family markets in the 17 largest cities
Like last week, all 17 cities have moved in favor of sellers over the prior month, but this time they are moving at the fastest rate we have ever witnessed.
A surge in demand coupled with an unusually weak supply of new listings is creating an almost surreal market. In many segments, buyers outnumber sellers many times over. In this environment things can get very frenetic and stressful, decision time is often very short and mistakes can result. Buying a home is one of the biggest decisions a buyer will make so I hope they will take time out to think carefully and not get caught up in the frenzy.
As recently as May 21, all 17 cities were moving in favor of buyers, so the change in direction has been sudden and violent. This is not normal.
The higher end of the market was lagging behind significantly, but is now joining in too. Paradise Valley's CMI is up 26% and Scottsdale's up 25% over the last month.
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You don't need me to decode this...you're seeing it.
As we approach tomorrow's summer solstice, we clearly see the inverse relationship between 2019 and 2020 - that as the market would typically be slowing in the heat, it's actually heating up...dramatically.
Again, the best evidence is Listings Under Contract:
Below we see PV about to overtake 2019 in a season-defying surge:
Similarly, Scottsdale has now surpassed 2019 in Listings Under Contract:
And then there's the Valleywide scenario!
Here we see this week 24 of 2020 has over 1,000 transactions over this time last year.
Frenzy is the word...
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