Market Index Update - Feb 2 2023

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

(A Cromford Index score of 80 or lower is a Buyer's Market.  80-120 is Balanced.  Over 120 is a Seller's Market)

Fountain Hills continues to weaken, but remains in number one position. Paradise Valley has also weakened and dropped to number 3 with Chandler taking its place.

15 out of 17 cities are showing an improved market for sellers. Huge improvements are apparent for Avondale, Chandler, Mesa, Queen Creek, Tempe, Glendale and Phoenix.. The latter is extremely important because Phoenix represents about 25% of the total market in Central Arizona and a 25% gain in its CMI means we are headed towards a significantly improved situation for sellers. Those expecting significant further price reductions will probably be dismayed.

Cave Creek, Scottsdale, Maricopa and Buckeye have seen only modest improvements, but they are all more favorable for sellers than a month ago.

Among the secondary cities, Anthem, El Mirage and Tolleson are doing particularly well while Apache Junction, Sun Lakes and Sun City West are comparatively weak.

The average change in the CMI over the past month is 18%, lower than the 20% that we saw last week. The positive trend is no longer accelerating, but remains substantial.

Among the 17 largest cities we see 4 currently in a buyer's market below 90, 2 balanced between 90 and 110, and 11 in a seller's market over 110.

The improving demand is not limited to the Greater Phoenix area. Yesterday the developer Meritage reported that January 2023 new home orders were 4% higher than January 2022