Phoenix Real Estate Market is Still HOT!
Once again, here is our table of Cromford® Market Index (CMI)* values for the single-family markets in the 17 largest cities
The number of red dots has doubled again since last week with Avondale and Glendale joining Tempe and Maricopa as locations where the seller's advantage is getting slightly lower. Not that you would notice much - with every one of the 17 cities well over 200, we have one of the strongest seller's market we have ever seen.
Meanwhile, the average increase in the CMI is still 10.2% over the last month, which would be considered remarkable if we had not just seen much higher percentages over the past 2 months.
We can see Fountain Hills, Scottsdale, Cave Cree and Paradise Valley all moving strongly in a direction favorable to sellers. Fountain Hills and Cave Creek have unusually low numbers of active listings at the moment, which must be very frustrating for buyers who want homes in these towns.
Surprise, Buckeye, Peoria and Goodyear are the top performers among the more affordable areas of the valley.
When comparing home prices in Arizona to other large metropolitan cities, we look at the S&P Case-Shiller Home Price Index numbers which were published yesterday. Yesterday's published report covers home sales during the period April to June 2020.
For most of the 20 metropolitan areas prices lost steam compared with the previous month. However, this is because the weaker months of April and May are included but the stronger and more recent months of June and July are excluded.
Comparing with the previous month's series we see the following changes:
Minneapolis 0.97%
Charlotte 0.91%
Phoenix 0.82%
Washington 0.69%
Dallas 0.68%
Portland 0.66%
San Diego 0.59%
Cleveland 0.58%
Denver 0.54%
Atlanta 0.48%
Los Angeles 0.44%
New York 0.32%
Boston 0.27%
Seattle 0.24%
Tampa 0.20%
Miami 0.13%
Chicago 0.05%
Las Vegas -0.43%
San Francisco -0.58%
Detroit - data not available
The national average was +0.56% so Phoenix home prices increased at a higher rate than the national average, but slipped from 2nd to 3rd place compared with last month..
The year over year comparisons are below:
Phoenix 9.0%
Seattle 6.5%
Tampa 5.9%
Charlotte 5.7%
Minneapolis 5.4%
Cleveland 5.4%
San Diego 5.0%
Atlanta 4.2%
Portland 4.2%
Denver 4.0%
Miami 4.0%
Los Angeles 3.9%
Washington 3.5%
Boston 3.5%
Las Vegas 3.3%
Dallas 3.1%
New York 1.6%
San Francisco 1.4%
Chicago 0.6%
Detroit - data not available
The national average was 4.29%, down from 4.46% last month. Phoenix remained in the top spot yet again and now has opened up a bigger gap of 2.5% over the number 2 city - Seattle.
*Cromford Market Index™ is a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer's market, while values above 100 indicate a seller's market. A value of 100 indicates a balanced market.
