What Phoenix housing market buyers and sellers can expect in 2023

By: AZ Big Media 

The Metro Phoenix housing market  has heavily favored home sellers since the start of the decade as more people moved to Arizona and the pandemic scrambled the status quo. The S&P CoreLogic Case-Shiller Index’s most recent release shows that home prices in Phoenix rose 17.1% from August 2021 to August 2022. In the past few months, however, the dynamic has started to shift. Andrea Crouch, president of Phoenix REALTORS, notes that prices are beginning to go down.

“It’s simply a supply and demand issue,” she says. “The iBuyers have evacuated here, so that’s left actual owner-occupants to be the buyers, but the increase in interest rates has made it more challenging for them. That’s the reason we’ve seen that dip, but the bottom is not going to fall out by any stretch. It’s just turning into a more normal market, which is just fine.”

One of the indicators that tracks whether the Metro Phoenix housing market is tilted towards buyers or sellers is the Cromford Market Index. Rich La Rue, a broker with HomeSmart, explains that the index takes into consideration business done through the day prior.

“Today’s [Sept. 6] chart is at 105.3,” he says. “100 is considered a perfectly balanced market, but really anything from 90 to 110 Cromford considers balanced.”

In the two months since speaking with La Rue, the Cromford Market Index has slid to approximately 92, approaching buyer’s market territory. As the Greater Phoenix housing market returns to a semblance of normalcy, what does that mean for buyers and sellers as 2023 approaches?

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