Be aware, the market is turning. Reading the Cromford Market Index (CMI) for Greater Phoenix, a measure under 90 is a buyer’s market and a 90-110 is a balanced market. Our index has been indicating a buyer’s market since November 2024 and hit bottom at a measure of 72 before turning mid-July. Two months later, as of September 11th, the CMI is up 9 points to 81. At this rate, it could surpass 90 and enter a balanced state by November, potentially ending a year-long buyer’s market and stabilizing prices.

Buyers the window may be closing soon…. 

Let’s check out the math… 

     With every 1% drop in mortgage rate, all principle and interest payment measures across all loan amounts drop by 10%. So if a buyer was quoted $2,400 monthly payment in January on a $350,000 loan at 7.26%, that PI payment would be $2,160 monthly at 6.26%, saving $240/month. Combine that with a 2% drop in the asking price of that home, that saves another 2% off the payment, brining the total savings to $288 and a payment of $2,112, a 12% discount compared to January.

     That’s not all. In this buyer’s market, more than 60% of sales between $225K – $600K have sellers paying for the buyer’s closing costs, which often include a 2/1 rate buydown. This drops the buyer’s payment by another 20% in the first year, and 10% in the second, brining the first-year payment down to $1,690 and second-year payment to $1,900 before taxes and insurance.

What to expect…