{"id":1449,"date":"2025-05-21T16:35:49","date_gmt":"2025-05-21T16:35:49","guid":{"rendered":"https:\/\/nohasslelistingblog.com\/?p=1449"},"modified":"2025-05-21T16:35:49","modified_gmt":"2025-05-21T16:35:49","slug":"market-update-may-2025","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=1449","title":{"rendered":"Market Update May 2025"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Housing Crisis &#8211; Real or Imagined?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>\u201cThe report of my death was an exaggeration\u201d ~ Mark Twain<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Chaos begets chaos.\u00a0 The tariff uncertainty and the volatility of the stock market led to some dire predictions in the housing market. \u00a0Newsweek ran an article suggesting home values in greater Phoenix could drop by 20%.\u00a0 Gulp. Others echoed similar sentiments. Let\u2019s take a deep breath.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Has economic uncertainty impacted the valley housing market? Yes.\u00a0 But factually the drop in accepted contracts was 18% in the 3 weeks following the tariff announcement.\u00a0 Since then, we have seen the first few weeks of May show a small recovery in the number of contracts.\u00a0 So, while admittedly the marketplace <u>is<\/u> favoring buyers, the odds of a 20% drop in values are slim.\u00a0 The Cromford Report shares this:<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhile Greater Phoenix is slipping farther into a buyer\u2019s market, it\u2019s not extreme enough for a collapse of that magnitude. Buyer\u2019s markets over the past 25 years, excluding the 2008 sub-prime mortgage collapse, saw prices drop between 5% and 11% year-over-year, and those price declines were enough to pull the market back into a seller\u2019s market each time\u2026. Either way, the current buyer\u2019s market supports declining prices over the next 3 months; 20% is extreme, but 3% is more reasonable. If mortgage rates move closer to 6.5% or lower, all projections will change again.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once again \u2013 supply\/demand controls pricing.&nbsp; When supply exceeds demand, prices decline.&nbsp; But, for a seismic drop in values \u2013 supply must move upwards dramatically or demand must collapse. Instead of dramatic movements, we are seeing gradual erosion of demand with a continuing increase of supply.&nbsp; That results in downward pressure on pricing.&nbsp; But it is wise to remember that unlike supply, demand is elastic and can bounce quickly \u2013 especially in response to lower mortgage rates.&nbsp; The report of the housing market death appears to be an exaggeration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Russell &amp; Wendy Shaw<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(mostly Wendy)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing Crisis &#8211; Real or Imagined? \u201cThe report of my death was an exaggeration\u201d ~ Mark Twain Chaos begets chaos.\u00a0 The tariff uncertainty and the volatility of the stock market led to some dire predictions in the housing market. \u00a0Newsweek ran an article suggesting home values in greater Phoenix could drop by 20%.\u00a0 Gulp. Others [&hellip;]<\/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-1449","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\/1449","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=1449"}],"version-history":[{"count":1,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1449\/revisions"}],"predecessor-version":[{"id":1450,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1449\/revisions\/1450"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}