By Scott Gaertner, Associate Broker
Can you sense the subtle shift in our local real estate market? It’s not a seismic change, but there’s a gentle tilt that seems to be leaning in favor of buyers lately. Think of it not as an alarm bell, but more like a friendly tap on the shoulder suggesting it’s a good time to look around. And while we might anticipate this buyer-friendly breeze to persist if economic conditions pivot—softening inflation and lowering interest rates—current signs show both indicators moving slightly in the wrong direction.
A Closer Look at Inventory:
More Homes, More Choices
First up, let’s talk about what’s happening with inventory. The active listings chart above spells it out loud and clear: there are many more homes waiting for new owners than we’ve seen in quite some time. With more homes on the market, buyers have the advantage of choice, similar to a larger catalog of options. This expanded inventory makes it easier for buyers to find a home that aligns with their preferences.
The Cromford Market Index:
Navigating Through the Numbers
When we zoom out to get the bigger picture, the Cromford Market Index (CMI) is like our real estate GPS. It shows us how Scottsdale stacks up against the neighbors. Remember the CMI is a value that provides a short-term forecast for the balance of the market. It is derived from the trends in pending, active, and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer’s market, while values above 100 indicate a seller’s market. A value of 100 indicates a balanced market. Right now, we’re seeing a gradual move toward a market that’s a bit friendlier to buyers than sellers. Scottsdale North is still well into positive territory, but other areas are not. Overall, the market is definitely shifting towards a more balanced market.
Negotiating Power:
How Buyers are Gaining the Upper Hand
With the increase in homes on the market, buyers are finding they’ve got a bit more sway when it comes to talking price. This isn’t about dramatic market upheavals; it’s about a steady transition towards conditions that better accommodate buyers. These visuals aren’t just random numbers; they’re the story of our community’s real estate heartbeat. This is a fairly subtle movement but one we haven’t seen for a while.
Timing is Everything:
Why Now Could Be Your Moment
If you’ve been mulling over whether now’s the time to make your move, this might just be the nudge you need. With the market humming along nicely and a wider choice of homes, there’s no rush. You’ve got the luxury of time to hunt down the perfect fit for your next chapter.
Embracing Change:
The Real Estate Market’s Only Constant
Here’s something to think about: In the realm of real estate, the only constant we can rely on is change itself. For a considerable period, we’ve observed the market’s tendency to favor one direction, showing robust strength and a seller’s advantage. However, recent trends indicate a subtle yet significant shift towards a more balanced scenario. This transition is neither abrupt nor dramatic; instead, it’s a gradual realignment, reflecting a nuanced move towards a market that is increasingly accommodating to buyers. But that can change quickly–in either direction.
Future Forecasts:
What the Experts Are Saying
How long will this trend last? Just like this photo above with my son holding the Demand hose. If inflation eases and interest rates drop as the experts keep hinting, his sister is going to unkink that demand hose, and the housing industry could explode again.
Keeping Up with the Market:
Your Guide to Staying Ahead
So, here’s the deal: we’ve got our finger on the pulse, watching the market’s every move for you. Whether you’re ready to buy, thinking about selling, or just love keeping up with the real estate game, we’re your go-to source. We’ll keep you in the loop with all the latest shifts and turns, making sure you’re always one step ahead. Stay tuned, and remember–in real estate, just like in life, timing is everything. And we’re here to make sure you’ve got all the info you need right when you need it.
