{"id":1391,"date":"2024-05-20T20:15:03","date_gmt":"2024-05-20T20:15:03","guid":{"rendered":"https:\/\/nohasslelistingblog.com\/?p=1391"},"modified":"2024-05-20T20:15:03","modified_gmt":"2024-05-20T20:15:03","slug":"market-snapshot-may-2024","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=1391","title":{"rendered":"Market Snapshot May 2024"},"content":{"rendered":"\n

A Low Volume Market does not equal a Low Priced One<\/strong><\/p>\n\n\n\n

As we have stated so many times, a low volume market is not a headline grabber.  You wouldn\u2019t know that listening to the \u201cauthorities\u201d who trade on clickbait headlines.  For years they have been promising crashing prices.  No, just no.  Here is the truth of the market.  Mortgage rates have remained high for about two years now.  That suppressed demand. But, that does not automatically equate to reduced prices.  For downward pressure on price \u2013 you need excess supply.  And while supply has slowly continued to climb \u2013 we still aren\u2019t oversupplied.  Rather the cumulative effect is a balanced market.  In reality, that means we have some areas (such as Chandler) favoring sellers and some (Maricopa, Buckeye) favoring buyers and some balanced (Goodyear, Surprise).  The Cromford Report examines the numbers more closely:<\/p>\n\n\n\n

\u201c\u2026 most cities are either in a much weaker seller\u2019s market, balance, or a full-blown buyer\u2019s market. Supply is up 44% over last year and has reached a level similar to pre-pandemic 2017-2019. Supply is still 27% below normal, but it\u2019s balanced out by demand that is also 20% below normal, suppressed by high mortgage rates.<\/em><\/p>\n\n\n\n

Under these conditions the market has seen higher marketing times and an abnormal spike in cancelled listings. In a balanced market, it\u2019s important to prepare homes for sale prior to listing and dismiss the idea that a buyer will accept a carpet allowance and credit for repairs over competing homes that are move-in ready. \u201c<\/em><\/p>\n\n\n\n

But while the market is gently weakening for sellers, the bright spot is pricing (always a trailing indicator) just hit the highest price per square foot for closed sales.  Again, the Cromford Report shares:<\/p>\n\n\n\n

\u201c\u2026 the monthly average price per square foot for closed listings for all areas and types in the ARMLS database has exceeded $308. This means it has made a new all-time record high – $308.01.<\/em><\/p>\n\n\n\n

Again and again, they make the mistake of thinking a weakening of demand will force prices down. The market sees low volumes when demand is weak, but to get prices to come down you need excess supply and desperate sellers.<\/em><\/p>\n\n\n\n

I expect the usual seasonal decline in average $\/SF during the 3Q, but for now, the market deserves some respect for its resilience and sellers can celebrate the new all-time high.\u201d<\/em><\/p>\n\n\n\n

If mortgage rates do not lower \u2013  we can expect supply to continue to build.  In that case, it might be time for sellers to sell sooner than later.  If rates do come down, expect the supply to tighten and pricing to respond positively. <\/p>\n\n\n\n

Contact us for a no obligation, no cost analysis on your home.<\/p>\n\n\n\n

Russell & Wendy Shaw<\/p>\n\n\n\n

(Mostly Wendy)<\/p>\n","protected":false},"excerpt":{"rendered":"

A Low Volume Market does not equal a Low Priced One As we have stated so many times, a low volume market is not a headline grabber.  You wouldn\u2019t know that listening to the \u201cauthorities\u201d who trade on clickbait headlines.  For years they have been promising crashing prices.  No, just no.  Here is the truth […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1391","post","type-post","status-publish","format-standard","hentry","category-real-estate-market"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1391"}],"version-history":[{"count":1,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1391\/revisions"}],"predecessor-version":[{"id":1392,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1391\/revisions\/1392"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}