And the decline (slowly) continues...

The appreciation rate is tumbling quickly now that inventory is growing. The appreciation can be measured in many different ways, but based on the monthly average $/SF, the appreciation rate for all areas & types within the ARMLS database is now below 30%, having peaked at over 39% at the end of May. Obviously, the rate based on the annual average $/SF is slower to react and is now leveling off near its peak at 24.4%.

Both measures of appreciation are likely to fall further over the rest of 2021, though they are unlikely to get back down to what we could consider normal during the next 4 months. Normal would be something less than 5%. We last saw that in 2016.

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The Cromford Snapshots make for a good summary visual across time and multiple parameters:

The month-over-month red arrow down indicates the trend favors buyers. 

Conversely the green arrow up favors sellers.

For additional perspective, here's what long term Annual Appreciation looks like in the Valley:

Annual Appreciation by Price Range is yet another perspective that points to how it's a mistake to broad brush or generalize Appreciation metrics. 

All gets a bit confusing doesn't it?

 As REALTORS® we love to share stats - cut and paste - a relatively easy way to share content; stay top of mind. 

However, explaining what they mean...not so easy. 

This is why I like our bank-grade, proprietary Collateral Analytics Intelligence Reports. 

They allow you to drill down to the market segment - city, zip code, even subdivision level with a concise year-over-year snapshot across the most meaningful criteria.

KISS: If we want to keep it simple AND accurate to the market segment of interest for my buyer(s) or seller(s), the Collateral Analytics Intelligence Reports are your ticket, with no restrictions in whatever medium you choose to distribute. 

Again, easy to generate; bank grade; proprietary!

Here's a sample for Flagstaff / Forest Highlands:

Another sample for Oro Valley / 85737:

A final sample for Arcadia (85018):