The report suggests the market seems to have reached an unusual stability with both supply and demand changing very little. The Cromford® Market Index shows the market confined to a very narrow range between 147.6 and 148.0 since August 22.
However, when it comes to home pricing, that’s when the landscape changes. All August MLS sales under $200K represented 46%. This means the impact of strong price appreciation in this area is significant in overall market measurements. More good news. Another 29% of August home sales were between $200K and $300K. Homes for sale in this range has risen 5.4% over the past 6 weeks.
While the market maybe hot at the lower-end, prices are not rising as rapidly with higher-end homes. Only 25% of August purchases were over $300K. In this price range, the market is more balanced in supply and demand, creating a more balanced supply and demand, a more stable price trend, as well as an equal negotiating power for both buyers and sellers.
When it comes to anything above $500K, the price direction depends on location. Areas like Arcadia are definitely popular but buyers seem to turn away from more distant areas like Gold Canyon, Cave Creek, and Desert Mountain, possibly because of lack of interest from foreign buyers.