OK so the FED finally blinked. Signaling a likely 0.75% reduction in interest rates in 2024. This may be the jolt in the arm real estate needs. The biggest impact will probably be on commercial first. But should also help residential.

Locally prices remain stable with relatively flat supply and demand. More on that later.

Just Sold | Gainey Village Casitas

7299 E Vaquero Dr, Scottsdale 85258 | $788,000

Market Stats

Cromford Daily Observation ~ After an unexpectedly strong interval in November, closed prices have fallen back to an average around $285 per sq. ft. and are now slightly lower than they were 2 months ago.

However, the average $/SF for listings under contract has not dropped and is still holding the line at $325. We always expect any unusually wide gap between the green line and the brown line to get smaller.

The overall market is now close to balance but some areas in a buyer's market and others in a seller's market. In these conditions the most likely result is for pricing to remain very calm.

Those expecting and/or hoping for strong price moves either up or down are probably going to be disappointed. Conditions would need to change a lot for either event to occur.

Our Take

We highlighted one section of the above analysis. And I would say this is the key point. Absent any major catalyst prices are going to be fairly flat. Here's a few additional points we are seeing.

1. Affordability remains an issue for the average consumer. Prices are sticky at these levels. However, if interests rate do drop in 2024 that will help. Buyers will buy into a environment where rates are expected to fall because they know a refi opportunity is coming.

2. Location is more important than ever. The better the area the better it will weather slower markets.

3. All time highs in the stock market are good news for luxury markets. Expect a fairly strong 1st quarter for high end homes if stock markets remain strong.

Coming Soon Listings

We have some coming soon listings in Paradise Valley, McCormick Ranch, Biltmore and North Scottsdale. But in this market things go fast so if you are looking be sure to let us know :-)

Interiors

Interior Design Best of 2023 Awards Winners.

Best Paint Color for Kitchen 2024 (Via Sherwin Williams)

In The Neighborhood

Happy's named best cheeseburger in Scottsdale.

JSX moving to Scottsdale airport.

Award-winning Japanese restaurant Uchi coming to Scottsdale in 2024

Grant Cardone with a weird take on real estate market.
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That's it folks. Have a great week!