Is Arizona Shifting to a Balanced Housing Market?

By Rebecca Durfey

Rebecca Durfey brings over 20 years of experience in real estate transactions within Maricopa County. Despite managing multiple clients simultaneously, her primary focus is to provide a personalized experience that makes you feel like her sole priority. Rebecca and her team are dedicated to efficiently achieving the desired outcomes for each client they serve.

If you’re wondering what’s happening in the Arizona housing market right now, the good news is we’re starting to see positive changes. The market is shifting from a deep buyer’s market to a more balanced one, and this shift could impact both buyers and sellers in significant ways. Here’s what you need to know:

The market is shifting toward balance. For the past three years, we’ve been in a sideways market, which has been tough on sellers. Since early August, the Cromford Report index has been steadily climbing daily, indicating ongoing improvement. If this trend continues, we could reach a balanced market by November. Lower interest rates could accelerate the process even further.

Buyers still have leverage for now. Currently, buyers can negotiate concessions, price reductions, and assistance with closing costs. However, as the market becomes more balanced, those advantages will diminish. Competition will rise, and offers will need to match seller pricing. If you have a contingency or less-than-perfect terms, now is the time to act before balance takes away your edge.

Sellers may soon face less pressure. Prices may not increase right away, but sellers should start to see fewer demands from buyers. Concessions and inspection requests are often the first things to fall by the wayside. With inventory tightening and demand increasing, conditions are becoming more favorable for sellers.

Inventory is dropping while demand is climbing. Many homeowners have pulled listings, let them expire, or converted them into rentals, which has reduced available inventory. At the same time, rates have dipped to around 6.5% from 7% a month ago, bringing more buyers back into the market. Lower supply plus higher demand creates stronger conditions for sellers.

The Arizona market is heading toward balance, and timing matters. Buyers should move now to take advantage of today’s leverage. Sellers should prepare for a shift that will bring stronger competition and firmer prices. If you have questions about how these changes affect your situation, feel free to call or text me at 623-297-4536 or email me at rebeccadurfey@kw.com. I’d be happy to guide you through your next move with clear advice and support.