February 2026 Arizona Housing Market Trends for Buyers and Sellers

By Jason Penrose

Jason has been licensed since 1999, and is currently one of the top 20 agents in Arizona for homes sold.

Are you thinking about buying or selling a home this year? As we move into 2026, here’s a look at how the housing market is performing compared to this time last year.

To start, here’s how the market compares to this time last year:

• Active listings: 28,476 homes on the market today, up from 25,926 last year. That’s a 9.8% increase in active inventory.
• Homes under contract: 8,316 now, up from 7,772 last year. That’s a 10.8% increase in homes under contract.
• Homes sold: 4,868 homes sold this year versus 4,857 last year. Sales are essentially flat.
• Months supply of inventory: Inventory increased from 4.7 months last year to 5.1 months this year, an 8.5% increase in months supply.

What we’re seeing is more homes coming on the market and a higher months supply of inventory. At the same time, homes under contract are up, while overall sales remain steady. The market may feel a little cooler this year compared to last, but there’s more happening beneath the surface.

Interest rates have played a big role. Rates have dropped roughly 1% over the past year, bringing buyers back into the market. FHA and VA loans are averaging below 6%, and the national average is also under 6%. That’s motivating both buyers and sellers to take action.

Here’s what I tell buyers: rents typically go up year over year, but a mortgage locks in your payment for 30 years. Sure, taxes and insurance can fluctuate slightly, but it’s nothing like a landlord increasing your rent unexpectedly. That stability makes buying a home very appealing right now.

Sellers are taking action. Many sellers have been waiting for mortgage rates to drop, and now they’re ready to list their homes and move forward. At some point, you just have to make a move, and 2026 is starting off as a strong year for both buyers and sellers.

If you or someone you know is thinking about buying or selling, give me a call at (602) 738-9943 or email jason@thepenroseteam.com. I’m happy to answer questions, share tips, and help you get started.