Will February bring that sweet spot in the market we're all hoping for?! With January's numbers rolling in, it's looking like it's a definite possibility. The question really is how long will it last? If you remember from last month's look at the Cave Creek real estate market this small town was in a buyer's market according to the Cromford Market Index. Buyer's might have had a slight upper hand when it came to price and concession negotiations. What are we seeing for this month? Let's dive in a little!
We're Seeing Inventory Growth
Here's a bit of good news - there are signs of life! Coming off the end of the year, we are seeing more active listings in Cave Creek and more homes going under contract compared to last month. Additionally, listings are up compared to this same time last year. Let's hope this is a positive indicator buyers looking to pounce with a little extra inventory. There are 185 active listings as of 2/1/2024, compared to 169 this time last year.
Homes Are Spending Less Time on the Market
Great news for sellers but an eye opener for buyers. The average days on market for sold homes was 64. This is a decrease of almost 3 weeks from this time last year. Why are things flying off the shelf quicker? While there are a number of factors contributing to this, a major consideration is the slow decline in mortgage interest rates. Buyers may be feeling a little less pressure from rates and are scooping up what's available. That or they've just becomes restless and decided not to wait forever!
How Are Home Prices?
On the whole, home prices are stable over the last year with the median home price in Cave Creek sitting at $849,000. However, compared to a 2022 median of $725,000, we're still experience a healthy dose appreciation. One good piece of news for buyers is that seller concessions remain high and fairly frequent in today's purchases. In January 28% of homes sold had seller concessions with the median concession coming in at $10,050. If you're agent isn't recommending strategic negotiation be sure to bring it up!
Cave Creek is in a Balanced Market
If you remember, Cave Creek was technically experiencing a Buyer's Market last month. December's Cromford Index came in at 84.2 meaning buyer's had a slight advantage over sellers based on the data. This month, that index came in at 101.6 meaning there may be less negotiating room but you also shouldn't be overpaying.
Things to Keep An Eye On
The big elephant in the room are mortgage rates. The Feds already said that they would be keeping rates steady for the time being. However, it's anticipated they will cut rates sometime later this year (hopefully a few times!). That's expected to have an impact on mortgage rates and may put more buyers in a favorable position. However, this increase in buyers could be good for sellers if inventory continues to remain slim. More buyers and few listings would still be ripe for fierce competition.
Another thing to keep in mind is that it's a big election year. Markets are bound to get wonky, and people may feel differently about their money depending on what happens there. This could definitely shift things around in the housing market.
Other Interesting Trends
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About the Photo: I felt lucky to capture this beautiful double rainbow over Black Mountain this weekend!
