We are seeing a significantly changed terrain with most markets and area segments seeing increasing inventory (houses, condos on the market) and reduced demand: 1) large, institutional buyers are slowing down, with reports of at least one completely dropping out of the purchasing market). 2) With prices so much higher than a year or two ago, and dramatically higher interest rates compared to a year ago, affordability is an issue.  Buyers are taking a breather or perhaps lowering their home search price budget.   Per The Cromford Report 6/21/22:

“The deterioration in the market for sellers continues with almost as much speed as ever. There has been a slight reduction in the rate of arrival of new listings, but it is still much higher than last year at this time. Demand has not stopped falling and listings under contract are exceptionally low for the time of year. Even our best performing city, Paradise Valley, has slumped 11% over the last month, but it may yet overtake Fountain Hills and grab the top spot, since Fountain Hills fell 18%, the second best result. Cave Creek is third and fell “only” 21%, which looks good by comparison with the other 14 cities which range from -30% (Avondale) to -44% (Glendale).

Buckeye is now a buyer’s market by a large margin and Queen Creek is almost as bad for sellers. Maricopa is not quite there yet but it will be a buyer’s market in 2 or 3 days. Gilbert, Tempe, Peoria, Chandler and Surprise are all going to be balanced markets within a few days and on their current trajectory they could be buyer’s market by mid August. The largest market by far, Phoenix, looks like it will be balanced before the end of July and a buyer’s market before the beginning of September. Glendale and Mesa are just a week or so behind.”

-The Cromford Report June 2022