The Fall Continues

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

The average change in CMI over the past month is -3.4%, a steeper fall than the -2.1% we saw last week . This is continuing the downward trend that started 4 weeks ago. Price reductions are again increasing in both size and frequency.

In contrast to last week, we only have 4 cities showing an increase in their Cromford® Market Index over the past month, while 13 have declined.

Cave Creek is the biggest mover in favor of sellers but it is only up 8% over last month. Glendale, Peoria, Mesa, Phoenix and Gilbert are the primary locations moving in favor of buyers, with Gilbert's market deteriorating the fastest..

Despite the continuing deterioration, 11 out of 17 cities remain seller's markets. We have 2 cities (Goodyear and Cave Creek) that are balanced, while the remaining 4 are buyer's markets.

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'Price reductions are again increasing in both size and frequency'. That's the takeaway from today's updated CMI (Cromford Market Index) - for those new to my 'News...', the CMI is a proven short term predictor of the market.

My 'drum beat' year-to-date has been that you could sum up market conditions broadly by saying it's a good market, but the trend is new listings increasing disproportionate to listings under contract (sales). Further, that even though prices are a lagging indicator, the above referenced increase in frequency and size of price reductions will invariably affect the overall average price trend.

Here's the graphical evidence of those price cuts - they've doubled per week year-to-date in the broader market; up 37% per week in the luxury sector ($1M plus) - Note: one factor the affects luxury is the typical seasonal decline in luxury inventory:

Takeaway ~

• The consequence of listings increasing disproportionate to sales is upon us.
• Your remedy ~ competitive positioning to cut the marketing time by 2/3rds and net the highest price achievable (we have the metrics to prove this.