Phoenix Area Real Estate Market Update

Hello from The Goodman Taylor Team!
If you’re wondering what’s happening in the Phoenix real estate market—whether you’re thinking of selling, buying, or just staying informed—here’s our latest update on where things stand, what’s shifting, and what to watch in the months ahead.

🔑 Key Takeaways

• The median home value in the Phoenix area is about $407,541, down roughly 4.6% over the past year.
  
  
• Prices are down about 7–8% from their peak in mid-2022.
  
  
• Inventory is rising, giving buyers more choices and signaling a shift toward a more balanced market.
  
  
• Even with modest price declines, homes remain about 50% more expensive than pre-pandemic levels.
  
  
• The luxury market—especially in areas like Paradise Valley, Arcadia, and North Scottsdale—remains strong, though buyers are taking a more strategic approach.
  
  

🌵 What’s Driving the Shift?

Over the past two years, the Phoenix market has been recalibrating. After a historic surge in 2020–2022, prices and demand have cooled slightly.

• More listings are hitting the market, reducing the bidding wars that once defined Phoenix real estate.
  
  
• Sellers now need to price realistically—today’s buyers are savvy and selective.
  
  
• Interest rates continue to play a major role in affordability, influencing buyer activity.
  
  
• Despite these shifts, Phoenix remains a desirable destination thanks to its job growth, sunshine, and active lifestyle.
  
  

🏠 What This Means for Sellers

For sellers, the market has changed—but opportunities are still strong.

• Homes are taking a bit longer to sell, and price reductions are becoming more common.
  
  
• To stand out, ensure your property is move-in ready, professionally staged, and priced competitively.
  
  
• Highlight lifestyle benefits—Phoenix’s sunshine, amenities, and sense of community remain major draws.
  
  

The Goodman Taylor Team specializes in helping homeowners present their property in the best possible light. With our deep experience in pricing strategy and local market knowledge, we’ll make sure your home attracts the right buyers and sells for top dollar.

🔍 What This Means for Buyers

For buyers, this is a welcome change.

• You now have more inventory, less competition, and room to negotiate.
  
  
• Prices have stabilized, creating a window of opportunity for those ready to purchase.
  
  
• While interest rates remain a factor, creative financing and negotiation strategies can help.
  
  

The Goodman Taylor Team’s buyer specialists can guide you through every step—from finding the perfect neighborhood to crafting a competitive offer that aligns with today’s market conditions.

🏘️ Neighborhood & Segment Trends

• Entry and mid-tier homes are seeing the most negotiation flexibility.
  
  
• Luxury homes continue to attract strong interest, but buyers are approaching these purchases more cautiously.
  
  
• The resale market is balancing out, creating a healthier environment for both sides of the transaction.
  
  

📈 Looking Ahead

Heading into 2026, we expect a steady and sustainable market—no dramatic swings, but continued balance.

• Prices are likely to remain flat or experience modest gains.
  
  
• Interest-rate movement will continue to influence affordability and buyer momentum.
  
  
• Sellers who list strategically before the spring season could see stronger results.
  
  

The Goodman Taylor Team is closely watching these trends so our clients can make informed, confident decisions—whether timing a sale, upgrading, or investing.

💬 Final Thoughts

For Phoenix-area homeowners and buyers alike, this is a market that rewards preparation and partnership. The frenzied pace of the past few years has cooled, but opportunity remains strong for those who plan ahead.

With over 30 years of experience in real estate and escrow, The Goodman Taylor Team understands how to navigate every phase of the market. Whether you’re ready to list, looking for your next home, or simply want a personalized market analysis for your neighborhood—we’re here to help.

📞 Contact The Goodman Taylor Team today to schedule your free consultation or neighborhood market review. Let’s make your next move a confident one!