What’s Changing in Phoenix Real Estate This August?

By Jason Penrose

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

Buyers and sellers in Phoenix are finding themselves in a market that looks different from just a year ago. Inventory is climbing, interest rates are easing, and both sides of the table are adjusting their strategies. For sellers, that means standing out is becoming more important. For buyers, it means more choices and fewer bidding wars. The past 30 days have revealed the key trends that could shape your next move. Here’s everything you need to know:

Active inventory has risen from 20,229 homes to 26,832, marking a 32.6% increase. Pending sales are also up, with 7,436 homes under contract compared to 7,246 a year ago, reflecting a 2.6% rise.

Closed sales dipped slightly from 6,257 to 6,115, which represents a 2.3% decrease. The months of supply have grown from 2.8 to 3.9, a 39.2% increase, largely due to the higher number of active listings.

Interest rates dipped slightly, which encouraged more buyers to enter the market while sellers are motivated to list their homes. Even with some homeowners locked into very low rates, life circumstances can still require a move. As rates drop, sellers are more willing to make that transition, which in turn boosts inventory and gives buyers more options.

An increase in inventory is healthy when it stays within a balanced range. Very low inventory fuels bidding wars, pushes prices higher, and limits buyer choices. While it may benefit sellers in terms of sale price, it makes the buying process far more competitive and stressful. On the other hand, a moderate increase in inventory supports a more balanced market where buyers and sellers can move forward with more flexibility.

The recent trends suggest that the market is moving toward a healthier balance, creating opportunities for both buyers and sellers. If you’re planning to buy or sell, now is a great time to take advantage of improving conditions and greater market fluidity. Contact me at (602) 738-9943 or email jason@thepenroseteam.com to discuss your next move. Let’s work together to position you for success in today’s market.