Phoenix Housing Market: What a “Mass Sell-Off” Really Means—and What to Do Now

By Jason Penrose

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

The Phoenix housing market is undergoing a significant transformation. Headlines warn of a “mass sell-off” and plunging home values, but the reality is more nuanced. While the market is correcting from its pandemic-era highs, it’s not collapsing.

A recent Newsweek article highlighted a home in Laveen that sold for $431,000 in 2022 and is now in foreclosure, listed at $289,500—a striking 33% drop. Analyst Nick Gerli points to a 20% year-over-year increase in new listings and a 35% decline in sales from the pandemic peak, suggesting a market flooded with inventory and dwindling buyer demand.

However, local data paints a different picture. According to the Arizona Regional Multiple Listing Service, active listings in Phoenix have risen by 63.2% compared to last year, and sales are up 2.8% year-over-year. In Gilbert, listings have more than doubled, yet homes are still selling.

This shift indicates a move toward a more balanced market. Buyers now have more options and negotiating power, while sellers face increased competition, making pricing and presentation crucial.

Median home prices are adjusting, with a 4.3% drop in average closed sale prices per square foot and a decline from $465,000 to $445,000 in median sales prices over five weeks. Sellers are receiving about 97.7% of their final list price, down slightly from last year, and concessions are becoming more common.

Despite these changes, the market isn’t in freefall. Experts like Sindy Ready, president of the Arizona Association of Realtors, note that while inventory has increased, it’s still insufficient to meet demand. The market is stabilizing, not crashing.

For buyers, this is an opportunity to explore a market with more choices and leverage. Sellers need to adapt to the new landscape by pricing competitively and ensuring their homes are market-ready. The Phoenix housing market is evolving, and those who adjust their strategies accordingly will navigate it successfully.

If you’re thinking about making a move—whether it’s buying, building, or refinancing—it’s important to be proactive. These economic shifts can feel abstract, but their impact on your personal finances is very real.

Schedule a 1-on-1 call with us today to review your options, lock in the right timing, and make sure you’re positioned to succeed.