Incremental Improvements
2025 was neither a record-breaking year nor one so dismal that it was headline grabbing. Instead, it was an incremental market with signs of small steady improvement. As this year winds to an end, demand has slowly been creeping up, and with it optimism for the coming year. The Cromford Report shares these facts:
“… this year November closed an extra 23 sales per day, putting the improvement at 9% (over Nov 2024) So far December is also outpacing last year with an extra 14 closings per day on average. If this is a peek into what 2026 may bring, then sellers should be optimistic for contract activity in January.
…Recent improvements in demand combined with declines in supply are pushing the Cromford Market Index back in the direction towards a balanced state. While Greater Phoenix is still in a buyer’s market overall, central and established cities are becoming the first to move back into seller’s markets. Most recently, Phoenix, Mesa and Tempe shifted back into seller’s markets within the last 30 days, putting nearly all cities in the Northeast and Southeast Valley in seller’s markets, with the exception of buyer’s markets Queen Creek and Sun Lakes. Developing cities on the edges of Metro Phoenix are typically the last ones to pull out of a buyer’s market. Pinal County cities, for example, are buyer’s markets except for Apache Junction, which is a seller’s market. The West Valley is a mix as El Mirage is a small seller’s market and Peoria recently shifted into a balanced market, joining Glendale, Avondale and Laveen. All other West Valley cities are buyer’s markets.
Don’t expect much upward pressure on price in the short term, even if your city has shifted back into a seller’s market. Prices can take up to 6 months to show a response to a shift, which means the seller’s market must be maintained, and many of these cities are still quite weak. What sellers can expect is more showing activity, shorter days on market, and less pressure to reduce their price once the Spring buying season begins.”
Whatever 2026 brings, we will endeavor as always to keep you informed. From our family to yours, we wish you the happiest of holiday seasons.
Russell & Wendy Shaw
(Mostly Wendy)