Thursday, May 26, 2022 / by Bryan Baylon
The decline in CMI values is still accelerating with an average monthly change of -28% compared with -24% last week. The pace at which the market is cooling off is both astonishing and widespread. Least affected are the active adult areas such as Sun City, Sun City West and Sun Lakes, none of which are big enough to appear in the above table.
The largest declines over the past month have been seen in Avondale, Gilbert, Queen Creek, Cave Creek and Chandler. The smallest declines can be found in Paradise Valley and Fountain Hills but even here the fall is a massive -21%.
Only 7 cities are still over 300. There were 15 a month ago.
Buckeye is interesting in that demand has actually improved over the past month. However supply continues to build quickly and overwhelms that effect.
In absolute terms 166 to 400 are all seller's market CMI numbers, so we are not yet close to the point where buyer's have an advantage. However buyers' disadvantage in negotiations has dropped dramatically. This is because there is much less competition from other buyers. Many of these have dropped out due to the eye-popping increase in mortgage rates. There are also many more homes to choose from compared with a couple of months ago.
Cash buyers remain active, but these are a much smaller part of the total demand and cannot compensate for the loss of financed buyers.
Market incites provided by the Cromford report.