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May Phoenix Market Update

By LINDSAY FRICKS

Last month I said I was sensing a subtle shift in the market and this month the data is validating this hunch. It’s very slight, but the peak of the market frenzy appears to be just behind us.

Lindsay Fricks Real Estate Arizona

I am a power user of The Cromford Report which is the gold standard in real estate data and trends across any metropolitan in the US. They actually were one of the very few sources who saw the 2008 housing collapse coming and the founder even sold his investment properties prior to the crash. It’s a pretty remarkable resource and I love sharing with my community how this data is interpreted in the marketplace. 

The Cromford Report has a proprietary algorithm, called the Cromford Index, that measures supply and demand for real estate in the marketplace. The slightest change in supply or demand is a very powerful leading indicator or what’s to come in the future. The Cromford Index hit its peak at 514.9 back in mid-March which was the highest index ever recorded. For reference, a normal and balanced market where supply is equal to demand is a 100 on the index. Since March the index has been steadily declining to the 469.3 mark we are at today which represents an 8.8% decline since the peak. 

Lindsay Fricks Real Estate Arizona

The cause of the index decline is part due to demand dropping ever so slightly which we can contribute to buyer fatigue over exponentially increasing prices. Additionally, supply has increased by adding 13.8% more listings to the market versus last month. The result of a small shift in both supply and demand is signaling the beginning of the market cool off may be starting. 

This is not cause for panic or even a change in your current plans to buy or sell. This is nearly undetectable to the majority of agents, buyers and sellers in the marketplace and will likely not result in any impact to the housing prices in the short term. We really don’t have enough information to determine if this will be a persistent decline or just a temporary jump in supply due to people feeling more confident selling as the pandemic is getting closer to an end. 

Lindsay Fricks Real Estate Arizona

As always, the best thing you can do is stay plugged in with your trusted market advisor, that’s me, who will keep you informed and advise you on how to make the best decisions for you and your family when it comes to buying and selling real estate. 

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona!

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Median Home Price

$325,000

Annual Appreciation Rate

+7%

Estimated Population

450k

Median Age

34

East
Valley

why you want to live here

The two largest and most popular cities in the East Valley are Gilbert and Chandler. Once known for agriculture, the area has now been transformed into some of the most well known suburbs. Both cities have experienced tremendous growth in population and along with it now has all the amenities of larger cities. The suburbs are highly focused around families and have lots of parks, recreation and many family events year-round.

Median Home Price

$261,096

Annual Appreciation Rate

+8%

Estimated Population

1.6M

Median Age

33

Central
Phoenix

why you want to live here

Phoenix is the heart of The Valley of the Sun and capital of Arizona. Known for warm temperatures year-round and sprawling urban space surrounded by desert mountains. Phoenix is the 6th largest city in the US and home to nearly 1.6 million people. Phoenix has just about something to offer everyone: numerous golf course, professional sports teams, hiking trails, concerts, festivals and much more. With an affordable cost of living there’s a place for everyone with the Phoenix metro.

Median Home Price

$308,750

Annual Appreciation Rate

+8%

Estimated Population

174k

Median Age

28.5

Tempe

why you want to live here

Tempe is a city just east of Phoenix, in Arizona. Its striking Tempe Center for the Arts hosts concerts, dance and comedy shows. Nearby, Tempe Town Lake is dotted with kayaks, pedal boats and paddleboards. Tempe Beach Park hosts outdoor festivals. Rising above the city, Hayden Butte is a mountain dotted with centuries-old rock art. Sporting events and concerts are held at Wells Fargo Arena.

Median Home Price

$725,000

Annual Appreciation Rate

8%

Estimated Population

36,241

Median Age

39

Scottsdale

why you want to live here

Scottsdale has long had a reputation as one of the most affluent cities in the West most well known for high end golf, spas, resorts, restaurants and shopping. There are over 27 golf courses located within the Scottsdale boundaries. The Southern part of Scottsdale is home to the historic Old Town area. The southwestern charm, numerous restaurants, bars and shopping as well as exciting nightlight make Old Town a hot spot for both young and old. Central Scottsdale is home to many popular golf communities such as McCormick Ranch, Gainey Ranch and Kierland Commons.  North Scottsdale is home to to two of the valleys largest annual events: the Barrett Jackson Auto Auction and the Waste Management Open PGA tournament. These events along with the 5 professional baseball spring training facilities bring millions of visitors into the area throughout the Spring months.

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