May 8 Real Estate Market Update

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

For the fourth week running, we have 17 of the 17 cities showing improvement for sellers over the past month. The improvement in the market for sellers is really accelerating now, with the average CMI increasing 16.1% over the past month, up from 14.3% last week.

New supply is unusually weak and nowhere near enough to replenish stock, even though demand is well below average. Demand is no longer in decline and has started to grow in most areas..

Paradise Valley has turned around dramatically and is now rising the fastest of all 17 cities. Tempe is looking very strong, while Glendale, Avondale and Buckeye have all risen by 20% or more over the last month.

The slowest improvements are once again in Surprise, Scottsdale and Chandler. Chandler looks threatened by Glendale for the top of the table.

We now have 4 cities over 200. This market is more imbalanced than most people appreciate. Low demand and very low supply are not everyone's idea of a hot market, but this level of imbalance is more than enough to create price appreciation.

Like last week, we have 14 cities in seller's markets, 1 is balanced and 2 in buyer's markets. Maricopa and Buckeye look like they will only be buyer's markets for a few more days.

Queen Creek will probably become a seller's market within a couple of weeks, as demand is looking quite strong there.