As we covered in the last market post, it looks like the market is not heading further toward “flat”, as we were thinking at the end of 2018 and the beginning of 2019.

One indicator of that is the Contract Ratio, from the Cromford Report. The ratio measures the number of completed sales contracts relative to the supply of active listings. If this number rises then it is a sign of growing contract activity and a positive signal for sellers.

In a balanced market for normal market segments, the value of the Contract Ratio is usually between 30 and 60. When it lies below 20 the market can be considered “slow” or a “cold market”. Above 60 can be considered a “hot market” and when it moves above 100 we regard this as evidence of a “buying frenzy”.

Well, compared to what we saw happening at the end of last year and the beginning of 2019, it looks like the ratio is strengthening. That’s a good sign, especially if you need to sell.

If you look closely at the chart, you will see that January, February and March of 2019 were significantly below those months in 2018.

In the case of January, it was getting dangerously close to “cold market.”

April 2019 is certainly not where April 2018 was, but we have made up a lot of lost ground in just one month.

So, what does this mean, especially since the high season in Phoenix typically ends at the end of June?

We think that, if you’ve been holding off on listing your house out of fear of a slow market, list it now! Your advantage is stronger and your chance of selling is better.

Get it on the market in time to get an offer before things begin to slow in June, as people think more about summer vacation and staying out of the heat than they do about purchasing a home.

In other words, this is about as good a definition of “opportunity window” as you can get.

Give us a call at 602-456-9388 and we can help build a strategy.