Thursday, August 25, 2022 / by Bryan Baylon
The average monthly change in CMI was -20%. This is another improvement on the week before when the reading was -25%. Although we are still seeing a deterioration for sellers over the last month, most of that happened in the first two weeks (that is, late July and early August). The deterioration has slowed markedly during the middle of August and CMI readings are falling much less quickly now. The decline over the last week was only 2.5%.
A few cities are even seeing their CMI rising in the last few days, including Paradise Valley, Chandler and Tempe. This is the first significant silver lining to the dark clouds that have hung over the market since April.
Demand has picked up in some areas, in the shape of increased numbers of listings going under contract. This is most noticeable in Chandler, Mesa, Phoenix, Tempe and Paradise Valley but has also occurred to a smaller extent in Glendale, Gilbert and Surprise.
In addition to improving demand, new supply has weakened to below normal. Only a few weeks ago, new listings were arriving at a very fast pace, but this seems to have subsided now.
Some areas remain heavily balanced in the buyer's favor, but overall, the market looks ready to settle into a more stable situation if current trends persist.
Paradise valley has overtaken Fountain Hills to make number one in our table. The top 4 slots are occupied by the 4 most expensive of the 17 cities.
Market insights provided by The Cromford Report.