Hey there, house hunters and home sellers! As your local Greater Phoenix real estate agent, I’m here to break down the latest market trends and empower you to make informed decisions. Today, we’ll delve into some fascinating data on contract ratios, a key indicator of market health.
Market Shifts: A Tale of Three Julys
Our analysis reveals a dynamic Greater Phoenix market over the past three Julys. Let’s explore these shifts:
July 2022: Rising interest rates caused a market frenzy, with contract ratios plummeting (especially for lower-priced homes) compared to the previous month.
July 2023: The market rebounded significantly. Low inventory, particularly in the most affordable segments, pushed contract ratios back up – great news for sellers!
July 2024 (Present): We’re currently experiencing a more balanced market, with supply and demand finding equilibrium. While some price ranges are exceeding 2022 levels (under $300k and $400k-$500k), most haven’t quite reached those highs.
What Does This Mean for You?
Buyers:
- The current balance presents an opportunity for negotiation, especially in the higher price brackets (above $800k).
- Be prepared to act quickly, though, as desirable properties in lower price ranges may still see multiple offers.
Sellers:
- Pricing your home competitively is crucial in this market.
- Consider staging your home and highlighting unique features to attract buyers.
A Million-Dollar Market Mystery
Interestingly, homes exceeding $10 million are defying the trend, experiencing a hotter market than the previous two years. On the other hand, luxury properties between $800k and $10 million are cooler compared to 2022 and 2023. This suggests a potential shift in buyer preferences within the luxury segment.
Remember, these are broad strokes. Let’s connect for a personalized market analysis tailored to your specific needs and goals!
Beyond Contract Ratios: Cromford® Market Index
While contract ratios are valuable, there’s more to the market story. In my next post, we’ll explore the Cromford® Market Index, a broader measure of market health across 17 major cities. Stay tuned!