Inventory Issues Continue...

 Cromford Daily Observation ~ Here is our latest table of Cromford® Market Index values for the single-family markets in the 17 largest cities:

At first glance, this is a similar picture to last week, with front-runner Fountain Hills losing ground but the other 16 moving in favor of sellers.

However, the average change in the CMI over the past month is 15.4%, down from 18.5% last week. The acceleration phase of this hot market is now over and it is starting to approach its maximum level. Indeed, some cities have even shown a slight decline in their CMI over the last few days. These are Chandler, Gilbert, Glendale, and Goodyear.

What we are seeing in these 4 cities is a fall-off in demand, probably caused by affordability concerns as prices continue to rocket higher. We should not be surprised - this is how markets are supposed to work. Higher prices weaken demand which in turn causes supply to recover. However, the change we are seeing is very small and does not amount to a turnaround. Not yet anyway.

The high end of the market is largely unaffected by this new trend at the moment and continues to set new records for low supply.

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Building on that last sentence above - a good example of a high-end market setting new records for low supply would be Paradise Valley:

The drop in PV active listings over the past 3 years is stunning!

It's a similar story throughout the NE Valley corridor: