What’s going on with Phoenix Real Estate?  Well, the market fluctuates, and the hot market we experienced the first half of 2013 is so last year.  Stories of multiple offers are now rare.  Listing price reductions to attract a buyer are now the norm.  Overall, across the valley, compared to this time last year, prices are up, listing prices are up, but inventory is 30 to 40% higher (depending on who measured and on what day).

The Cromford Report this week states that we are in “a confirmed buyer’s market…demand is weak… supply is not high, but growing fast”:

• In true Phoenix tradition, the balanced market did not last very long – from October 27 to February 8 to be precise. We are now in a confirmed buyer’s market with the Cromford® Market Index dropping below 90. Demand is weak with the Cromford® Demand Index at 78.7, its lowest level since May 2008. Supply is not high, but it is growing fast and the Cromford® Supply Index stands at 87.7, its highest level since July 2011. The deterioration in market conditions for sellers is across the board. No geographic area or price range is improving. However some sectors are much more favorable to sellers than others. In general the luxury market and the active adult areas are more favorable for sellers than the rest of the market. In the majority of sectors, prices are now under downward pressure, although they have not responded much yet due to residual seller optimism. However, if current market conditions prevail we are likely to see lower sales prices in many of these areas before too long.

February 11th’s ARMLS Stat confirms these developments (hyperlink isn’t working so here is the link to cut and paste into your browser if you want to see the entire report: http://www.armls.com/docs/stat-ppi-2014/stat-february-2014.pdf  ).

Here is a STAT chart comparing monthly MLS sales to those of last year, with January 2014 posting approximately 1000 units fewer sales: