Is Phoenix Real Estate in a Buyer’s Market?

By Rachael Richards

Rachael has been a top real estate agent in the Phoenix area for over 20 years. She and her team are consistently in the top 1% and have worked through all types of markets. Selling over 200 homes each year while maintaining a core value that clients come first, Rachael and her team have a wealth of experience and industry knowledge.

“Is it really a buyer’s market if prices are still going up?” This is one of the most common questions I get, and the answer might surprise you. Many buyers are waiting for prices to drop because they want to get a better deal. But what most people don’t realize is this: even in a buyer’s market, prices don’t always fall right away. Today, I’ll break down what’s really happening in the Phoenix real estate landscape so you can decide whether it is time to buy or sell.

What is a buyer’s market? First, let’s discuss what a buyer’s market is. A buyer’s market happens when there are more homes for sale than there are buyers. In this market condition, the buyers have the negotiating power because they can ask for price reductions, repairs, or help with closing costs. Due to the higher supply than demand, listed homes tend to sit longer on the market. But here’s the catch: just because it’s a buyer’s market, it doesn’t mean home prices will drop immediately.

Why aren’t prices falling faster? Real estate moves at a much slower pace than most people think. Unlike the stock market, which reacts instantly, real estate takes time. Sellers need weeks to prepare a home, which may take additional time because they have to ensure that their property is in good selling condition. Then, they need to find a buyer and accept an offer. The closing process takes another 30 to 45 days, which means it can take 3 to 6 months before we see the effects of a market shift reflected in home prices.

The hidden savings buyers don’t see. Right now, around 50% of Phoenix sellers are offering concessions. That includes paying for buyer closing costs, repairs, or even rate buydowns. Taking advantage of these can save buyers thousands of dollars, but they don’t show up in the final sales price. So while prices may appear stable, buyers are still benefiting—just in ways that aren’t immediately visible on paper.

Phoenix rarely sees a buyer’s market. Phoenix has only seen four true buyer’s markets in the last 25 years. Aside from the 2006–2008 recession, home prices during those times stayed flat or dipped only slightly because big price drops are not the norm here. So, if you want a drastic change in pricing, waiting around for a major market crash might not be your best bet.

What should buyers and sellers do now? If you’re buying, you may have more choices and room to negotiate. But don’t count on dramatic price cuts. Instead, look beyond the list price and pay attention to seller concessions.

If you’re selling, you’ll need to price competitively and be open to offering incentives. In a market like this, flexibility can help you stand out and close faster because your listing will be competing with thousands of properties.

The Phoenix market is shifting, but it’s not crashing because the home prices will only dip slightly. Whether you’re buying or selling, it’s important to understand what’s really happening and not just believe what the news says about the real estate market. If you’d like to explore your options or talk through your situation, you can call or text me at 480-270-5782 or email me at info@rhouserealty.com. I’d be happy to help you make the best move in today’s market.