Is the Buyer’s Market Making a Comeback in Phoenix? Here’s What You Need to Know

The Phoenix real estate market is shifting, and if you’re thinking about buying or selling, now is the time to pay attention. Over the past month, we've seen conditions tilt in favor of buyers, with 15 cities experiencing price softening and more inventory hitting the market.

But does this mean buyers have full control? Not quite. Some areas are still strong for sellers, while others are entering a more balanced phase. Whether you’re a homebuyer looking for a deal, a seller wondering if now is the time to list, or an investor trying to time the market, understanding these trends can help you make informed decisions.

What’s Changing in the Phoenix Market?

📉 15 Cities Are Becoming More Buyer-Friendly
Some of the hottest markets—Mesa, Gilbert, and Peoria—are now seeing a shift, with prices dropping as much as 15% in certain areas. However, while sellers are losing some leverage, homes that are well-priced and move-in ready are still selling quickly.

🏡 Inventory is Growing—But at a Slower Pace
The number of active listings without contracts continues to rise, up just over 2% in the past week. This is actually a slower increase than last month’s 3.2% jump, which could mean that the market is stabilizing rather than entering a full-blown buyer’s market.

💰 Luxury Buyers Play by Different Rules
If you're shopping in the $1M+ price range, mortgage rates likely aren't your biggest concern. Instead, the stock market and crypto trends have a stronger influence. If financial markets stay strong, expect luxury home sales to remain steady. If stocks or crypto cool off, higher-end home prices may start feeling the impact.

🏗 New Home Incentives Won’t Last Forever
Builders have been offering strong incentives, but these deals are starting to disappear as new home starts slow down. The share of new homes on the market dropped from 30% at the end of last year to 22.5% today. If you’re considering a brand-new home, now might be the time to take advantage of builder incentives before they disappear.

🚨 Foreclosures Are Up—But No, The Market Isn’t Crashing
Yes, foreclosure rates have increased, but let’s put it in perspective:

• Maricopa County saw 422 Notices of Trustee Sale last month, with 381 for residential properties.
• This is back to pre-COVID levels, but still far below historical highs.
• For comparison:
  • 2013: ~1,500 foreclosures per month.
  • 2009: ~10,000 foreclosures in a single month.
  • Long-term average: ~1,846 per month.

This isn’t a repeat of 2008—it’s simply the market returning to normal foreclosure levels.

What This Means for Buyers & Sellers

🔹 Buyers:

• You have more negotiating power in certain cities.
• More homes are available under $300K compared to last year.
• Interest rates aren’t dropping dramatically, so waiting may not get you a better deal.

🔹 Sellers:

• Well-priced, move-in-ready homes still sell quickly.
• Overpricing = longer time on market (and possibly price reductions later).
• Condition matters more than ever. Buyers have more choices now, so homes that need major updates may struggle to compete.

Want to Stay Ahead of the Market?

The Phoenix housing market is shifting quickly, and having up-to-date insights is key to making smart real estate decisions.

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Whether you’re buying, selling, or just keeping an eye on the market, staying informed is the smartest move you can make. Don’t miss out!