AZ Housing Market Update for Beginning of April 2020
Here is our usual table of Cromford® Market Index values for the single-family markets in the 17 largest cities. In regards to the Comford Market Index, anything over 100 is a sellers' market, 100 is a balanced market and under 100 is a buyers' market.
The supertanker that is the housing market has been slowly turning for the past 2 weeks and is now headed in a brand new direction.
Supply is still inadequate to meet demand but there are many changes compared with last month:
more new listings, particularly below $400,000
fewer new contracts getting signed
more listings getting cancelled
more contracts falling through
fewer sales closing
This week the average change in Cromford Market Index (CMI) is --5.8%. a dramatic swing from the +2.6% we reported last week. Only 3 cities are showing a gain in CMI since last month. No city's CMI advanced in the last 7 days.
The consequence is that sales volumes will drop and buyers will gain a little ground in negotiation with sellers. However,
sellers still have the clear advantage and there is no downward pressure on prices. The change of trend is certainly dramatic, but it would have to continue for several months before we reach a balanced market, never mind a buyer's market.