May 29 - Here is our latest table of Cromford® Market Index values for the single-family markets in the 17 largest cities
The market is still getting less favorable for sellers. However, the average change in CMI is -3.5% which is less negative than last week's -4.1%.
Just 4 cities have improved for sellers over the last month, the same number as last week. The remaining 13 cities improved for buyers. Scottsdale, Glendale, Phoenix, Chandler and Gilbert have deteriorated the most for sellers. Fountain Hills has improved the most and consolidated its position at the top of the table. Maricopa has also improved for sellers, but only marginally and still not managed to catch Buckeye. Goodyear and Paradise Valley also saw only marginal improvement.
We have 3 cities that are seller's markets (2 of these very weak seller's markets), 8 are balanced and the remaining 6 are buyer's markets.
During May supply has stabilized at what would be a reasonable level if demand were not so weak. Meanwhile the recovery in the stock and crypto markets has lead to a mild recovery in demand for luxury homes. This has not trickled down to the rest of the housing market, but the average $/SF and median sales price have both responded to the greater volume of expensive homes. This is a bit of an illusion because prices are not moving higher in the majority of market segments.
The typical 30-year fixed mortgage rate has dropped below 7% again, but only just. Perhaps buyers will just have to get used to rates in the high 6s or low 7s. There is little to suggest that hopes for rates in the 5s have any likelihood of coming true.
Home builders are frequently offering to buy the buyer's mortgage rate down to the 5% level, so their sales are strongly supported by this or similar incentives. However they are mostly reporting a weaker spring selling season than they expected.
