The Phoenix Houing Market is more balanced. It's not for the reason you may think. Housing demand is not increasing in the Phoenix real estate market. In fact, demand for homes has continued to decrease since April.
The reason lies with the number of homes for sale in the Phoenix MLS. While 25,000-26,000 listings is normal for the Phoenix real estate market there are currently 23,326 available homes in the Phoenix MLS. It's good news for sellers. If that were not the case sellers would be facing growing competition from each other.
The Cromford Market Index™ (CMI) measures a combination of factors within the Phoenix real estate market that includes supply and demand. An index of 100 indicates a balanced market. Scores over 100 indicate a seller's market and scores under 100 indicate a buyers market.
April 2014's index was 83.9 which was the lowest of the year, and inventory in the Phoenix MLS was 26,500 homes at that time. Only low buyer demand was at the heart of the buyers market. The index has now risen to 96.6 to begin September 2014 because inventory has dropped and is more in line with weak home buyer demand. The 2nd graph shows the up and down nature of the of the (CMI) since 2001.
Phoenix Real Estate Market Home Sales
6,457 homes sold in August 2014 in the Phoenix real estate market. The below chart indicates demand has fallen for 5 consecutive months. In normal years demand peaks in June, then it slowly declines to a seasonal low between November and January.
The below chart shows the average monthly sales from the Phoenix MLS over a seven-year period. Monthly demand in 2014 has averaged 6,588 homes over the first 8 months. 2014 has the lowest monthly sales volume since 2008. We have discussed several reasons for the lower demand ...
See the video report and rest of the story at: Phoenix Housing Market August 2014
Category Archive: Phoenix Real Estate Market
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