HomeSmart Elite Group

Licensed REALTORS® with HomeSmart Elite Group  ·  Scottsdale, Arizona

Equal Housing Opportunity REALTOR®

A Tale of Twenty-Two Cities

The Real Estate market has been slowly shifting across the valley. For a long time we’ve been reporting a tepid market that eked more and more into buyer market territory. In the last few weeks, correlating with mild relief on interest rates, we seem to, on the average, have been climbing back up out of the hole. It’s been a slow and turtle-like climb, but noticeable none-the-less.

On the whole however, we are still very much in the, um, well the hole. This might not feel right depending on where you live. Real Estate is always local, even as it reacts to larger economic trends.

Actually, about a half dozen on of our Valley cities are in Seller market territory:

Paradise Valley: Cromford Reading of 196.9 – Demand is below average, but supply is extremely tight

Fountain Hills: Cromford Reading of 137.7 – Demand low, supply lower still

Anthem: Cromford Reading of 132.8 – Demand low, supply lower still

Apache junction: Cromford Reading of 124.1 – Demand high side of normal, supply on the low side of normal

Cave Creek: Cromford Reading of 123.2 – Demand low, supply lower still

Chandler: Cromford Reading of121.5 – Demand low, supply lower still

Scottsdale: Cromford Reading of 118.4 – Demand low, supply lower still

El Mirage: Cromford Reading of 117.1 – Demand low, supply lower still

You’ll notice that most of these towns are not doing well because of some great burst of demand, but because supply is very low. The takeaway? Low demand does not always equal market crash.

Other cities are living in relatively balanced markets:

Glendale: Cromford Reading of 106.1 – Demand low, supply low

Sun City West: Cromford Reading of 105.1 -Demand is low side of normal, supply is low side of normal

Phoenix: Cromford Reading of 100.7 – Demand low, supply low

Gilbert: Cromford Reading of 100.4 – Demand low, supply low

Mesa: Cromford Reading of 98.9 – Demand low, supply low

Most of these are defined by low Demand AND low Supply.

The below towns are suffering:

Tempe: Cromford Reading of 80 Supply is a smidge low, Demand id is lower still (buyer’s market)

Sun City: 85.6 Demand is low, supply is low side of normal (Buyer’s market)

Peoria: 81.3 Demand low side of normal, supply is average (buyer’s market)

Good Year: 77.0 Demand low side of normal, supply too high (buyer’s market)

Laveen: 74.6 Demand low side of normal, supply too high (buyer’s market)

Queen Creek: 62.1 Demand low side of normal, supply is high (buyer’s market)

Surprise: 64.5 Demand low side of normal, supply is high (buyer’s market)

Litchfield Park: 57.9 Demand low side of normal, supply too high (buyer’s market)

The trend seems to be the further out from the Valley center you are, and the less expensive your town is to begin with the, the more of a buyer’s market you are in. Conversely, the more centralized, and high end, the more of a seller’s market. You can see there are exceptions, but that does seem to be a trend. This is primarily because it is the lower income ranges that are most impacted by interest rates.

Hopefully, interest rates will come down further still and stay there.

Market data referenced in this article comes from The Cromford Report.