2023: A More Favorable Situation for Sellers
Overall the market was more favorable to sellers than we expected in December and downward pressure on pricing has been largely eliminated, except in a few market segments.
This has started to bring more sellers into the market and new listings have been more plentiful over the last week. 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.
The Cromford Market Index™ is a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Below is our latest table of Cromford® Market Index values for the single-family markets in the 17 largest cities:
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.