By Paul Maryniak | Scottsdale Progress
Valley home buyers and sellers may be facing a long and not-so-hot summer, according to a leading analyst of the Maricopa and Pinal counties’ market.
“With supply and demand both dropping, volume is likely to be weak between June and September,” the Cromford Report said. “It is currently a contest between sellers and buyers for who loses motivation fastest.”
Rising mortgage rates, a plummeting inventory of resale homes and a continuing increase in prices continue to create havoc for buyers and sellers alike.
While all three trends are interrelated, low inventory of resale homes in the metropolitan area threatens to turn the not-so-hot summer into a not-so-hot year for most anyone hoping to buy a house, the Cromford Report warned.
Noting inventory of resale homes continues to dwindle to below 12,000, it said:
“This is an unhealthy supply and it is well-nigh impossible for prices to decline when supply is so weak and trending lower.
“If supply were to rise, then a cooling trend could start to build. The monthly releases of building permit data suggest that future supply will be strong for rental multi-family property, but single-family homes to purchase are being planned in ever smaller numbers.
