Phoenix Market Pulse: Why Buyers Have the Upper Hand Right Now

🔍 The Pulse of the Market

The Phoenix housing market is shifting—and fast. After several years of rapid appreciation, bidding wars, and record-low inventory, we're seeing a noticeable cooldown. Nearly half of active listings have now been sitting unsold for over two months, and home prices have dipped for the second consecutive month. Translation? Buyers are back in the driver’s seat.

This isn't a bubble bursting. It's a natural correction, bringing some long-overdue balance to a market that had been white-hot since 2020.

📉 What’s Happening on the Ground

• Inventory Surge: There are more homes on the market—up ~31% since this time last year (June 2024). That’s giving buyers something they haven’t had in a while: options.

  Source: Axios

• Price Adjustments: The median sale price in Phoenix dipped to $450,000 in May, a 2.9% year-over-year drop.

  Source: Redfin

• Longer Days on Market: Homes now sit for an average of 53 days, and the ones priced above market often linger far longer.

  Source: MarketWatch

• Buyers Calling the Shots: A reported 57% of homes are selling below list price, a strong signal that buyers are negotiating harder—and winning.

  Source: Realtor.com

💡 Why It Matters

If you're a buyer, this market presents a golden opportunity not seen in years:

• You can take your time.

• You’re not bidding against 10 other people.

• You can negotiate not just price, but closing costs, repairs, and even rate buy-downs.

On the flip side, sellers need to recalibrate. Pricing needs to be spot-on (or better), and concessions or upgrades may be required to stand out. The homes that are selling quickly are the ones that are staged well, priced competitively, and move-in ready.

And for everyone, keep this in mind: mortgage rates are still hovering around 6.7%, which means buyers are sensitive to monthly payment calculations. Price precision is more important than ever.

📌 Pro Tips for June 2025

🏡 For Buyers:

• Don’t rush—explore broader areas (consider Uptown, Cactus Corridor, or parts of South Scottsdale).

• Negotiate creatively—ask for seller credits to buy down interest rates or help with closing costs.

• Look for stale listings—homes that have been sitting may be primed for deals.

🛠️ For Sellers:

• Invest in light upgrades like fresh paint, landscaping, and updated lighting.

• Stage the home—today’s buyers want to feel the lifestyle.

• Be prepared to offer concessions—especially on homes over $1M or those sitting over 30 days.

🤝 For Agents:

• Educate your clients on the real-time market shift.

• Emphasize the importance of price positioning from day one.

• Add value with smart staging, pre-listing prep, and market strategy planning.

🚨 Final Thought

This isn’t 2008. There’s no market crash looming—just a much-needed return to reality. For Phoenix and the broader Valley, Summer 2025 is shaping up to be a rare buying window—especially for those who’ve been waiting on the sidelines. Whether you're a first-time buyer, move-up seller, or investor with a sharp eye, now is the time to make your move—wisely.

Need help navigating the shift? Let's talk.
📲 Call or text me anytime.