I mentioned last week that Fountain Hills was beginning to weaken. It is now lower than last month by 1%, but this did not stop it reclaiming the top spot. This is because Paradise Valley has also weakened over the past in the last week and by a larger amount. The high-end of the market is not participating very strongly in the increased demand that we are seeing for the mid-range and low-end. Cave Creek has also retreated in the past week. Scottsdale continues to increase but at a reduced speed.
The Southeast Valley is having a spectacular CMI recovery with Chandler up 43%, Mesa up 38%, Tempe up 25%, Queen Creek up 24% and Gilbert up 19%. Phoenix is also strong at 26% and the inner West Valley too, with Glendale up 25%, Avondale up 42%, Peoria up 20% and Surprise up 21%. Outer areas such as Buckeye and Maricopa are still improving for sellers, but more slowly.
The average change in the CMI over the past month is 20%, lower than the 22%that we saw last week.
Among the 17 largest cities we see 4 currently in a buyer's market below 90, 3 balanced between 90 and 110, and 10 in a seller's market over 110.
Among the secondary cities, Sun Lakes looks very weak with unusually low demand, and Apache Junction and Arizona City have lost momentum.
Overall the market is more favorable to sellers than we expected in December and downward pressure on pricing has been largely eliminated, except in a few market segments.
The more favorable situation has started to bring more sellers into the market and new listings have been more plentiful over the last week. Overall supply remains well below normal and so does demand. Volume is low but it is increasing and market health is improving, not deteriorating as it was for much of 2022.
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