Goodyear stands out as the only city to have improved for sellers over the past month. However the other 16 cities are moving quickly in a direction that is favorable for buyers. The average change in the CMI over the past month is -13.2%, which is an acceleration of the downward trend from -9.7% last week.
Active listings are still at low levels but they are growing fast. Several cities, such as Avondale, El Mirage, Gilbert, Maricopa and Queen Creek, have an active count (excluding UCB and CCBS) that is at least double what it was in March. This is still a low number, but the additional choice for buyers must be welcome.
Buyers have lost some of their motivation, faced with vastly higher prices and bidding wars that make them feel under-valued. We have been saying that demand is much weaker than the second half of last year for some time and many people have questioned how we can believe that. It is just mathematics. When supply is very low, weak demand looks and feels like strong demand. It is only when the supply grows that you realize how weak the demand really was. New listings are getting fewer showings and fewer offers, but still enough to sell quickly at a nice percentage of the asking price (often more than 100%). Demand still exceeds supply by a long way, but the gap is narrowing fast.