Phoenix Market Update 8/2020 - Seller's Market!
Cromford Market Index
Cromford Market Index hit 318 – ALL-TIME HIGH(100 is balanced, 110+ is Sellers Mkt, the higher the number the greater the Seller’s advantage)
Expect ANNUAL APPRECIATION RATES to rise.
Prices don’t decline when the CMI is 318 contrary to some headlines.
TODAY - 8/2020 - Supply is 63% BELOW Normal, while Demand is 18% ABOVE Normal
And it’s a LEGIT demand, Unlike 2005 when the flippers who were getting 100% financing and buying new builds with no intention of occupying.
In Maricopa and Pinal counties, 83% of sales are owner-occupied – this is the highest since the Cromford Report started tracking in 2012
There are projections by some analysts of foreclosures flooding market. Here is why it does not seem to be a concern.
Number of foreclosures in March 2020 - 388 in March 2020
Number of foreclosures in March of 1996 - 445 (Phoenix was much smaller then)
Number of foreclosures in Feb 2009 - 11,000 (was the peak of the housing crisis)
The number of foreclosures TODAY - 83. Even if we go up 500%, it’s not a problem for our market
Foreclosures have been way below where they should be for a city of our size for the past 6-7 years
With interest rates still below 3%, increased home prices are still affordable. And we still have lots of people in their homes who bought at the bottom of the market. Mortgage payments are lower than the cost to rent.
Median rent $1700/mo