Cromford Report: Michael Orr on the Current Market

Source:  Michael J. Orr, Owner/Founder of The Cromford Report
Director Center for Real Estate Theory and Practice
WP Carey School of Business
Arizona State University

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July 17 - 
The single family home market continues to climb very slowly out of its buyer's market towards neutral territory. When we look at the 29 major and secondary cities we see the following Cromford® Market Index values:

There is clearly a big spread, with the active-adult markets focused on baby boomers (Sun Lakes, Sun City West, Sun City) doing much better than the average city. However we also see recent strong improvements in the luxury markets of Paradise Valley, Gold Canyon, Fountain Hills and Scottsdale. Northwest Pinal County (Maricopa & Casa Grande) is also showing a good improving trend.

Overall there are only 8 cities showing deterioration from a seller's perspective, 1 unchanged and 20 showing improvement.

The cities with a strong improving trend over the past week are:

1. Paradise Valley
2. Gold Canyon
3. Fountain Hills
4. Tolleson
5. Glendale
6. Apache Junction
7. Sun Lakes
8. Scottsdale
9. Sun City West
10. Casa Grande
11. Maricopa
12. Surprise
13. Sun City
14. El Mirage
15. Anthem

There are only 2 cities with a strong deteriorating trend over the last week:

1. Arizona City
2. Queen Creek

This doesn't represent a hot market as demand is still dismal, but the supply is adjusting to the low demand and in most places, so are prices. Where prices are weakening slightly, demand is showing some signs of improving. This is how the market is supposed to work.