Thursday, June 16, 2022 / by Bryan Baylon
The Greater Phoenix housing market continues to weaken and the trend is still accelerating, with an average CMI decline of -35% which compares unfavorably with -34% last week. The luxury market is cooling but at a slower rate than the mid-range. Paradise Valley is easily the best performing city in the top 17 but has still seen a decline of 16% in its CMI. Fountain Hills and Scottsdale are tumbling by 33% or more but are the strongest markets in the list.
Maricopa, Queen Creek and Buckeye are much easier places to find new homes and the builders have been far more enthusiastic about putting their homes onto the MLS over the past two months. They are also more generous with buyer broker commissions. This only happens when they are concerned about a shortage of demand. Higher interest rates have taken a lot of buyers out of the market, but at least the ones who remain active will be getting more respect and personal attention. They may even be getting some concessions.
The largest declines are to be found in Avondale, Gilbert, Phoenix, and Chandler, all down 40% or more since this time last month.
At 131.5, Buckeye is getting close to a balanced market. At the current rate of decline, its CMI would fall below 110 by the end of June. Queen Creek and Maricopa are about 10 days behind and are likely to become balanced markets during July.
Market incites provided by the Cromford report.