Phoenix Real Estate Shift: Buyers Gain Power, Sellers Must Prepare Now

The Phoenix real estate market is shifting, and if you're considering buying, selling, or investing, now is the time to pay attention. For the first time in months, buyers have more negotiating power, while sellers should start preparing for the upcoming peak selling season.

Market Overview: The Shift is Here, But Will it Last?

This month, 15 cities in the Phoenix metro area saw a decline in their overall market index, signaling a cooling in some areas. However, this is not a full-blown buyer's market just yet—many locations remain seller-friendly, with only slight dips in pricing.

Key Market Trends in February 2025:

• Inventory is rising but at a slower pace than last month, meaning options are increasing for buyers, but the shift may not last long.
• Mesa, Gilbert, and Peoria saw some of the biggest declines, making them attractive spots for buyers looking for leverage.
• Builders are scaling back on incentives and slowing new home starts. If you've been eyeing new construction, those generous incentives may not be available much longer.
• Mortgage rates have seen slight improvements, but more importantly, buyers are adjusting to the market and moving forward despite higher rates.

What This Means for Buyers

? Negotiating power is increasing. With fewer bidding wars, buyers can now negotiate better deals, request seller concessions, and avoid overpaying.

? Builder incentives are fading. If you're interested in a new home, now is the time to act before incentives disappear and inventory tightens.

? Pre-approval is key. The market is shifting, but well-priced homes are still selling fast. If demand picks back up in the spring, being pre-approved will give you an advantage over other buyers.

What Sellers Need to Know

? Spring is approaching, and it’s one of the best times to list. The market still favors sellers in many areas, but buyers have more choices, so standing out is critical.

?? Overpricing is risky. The days of extreme seller leverage are fading. Pricing correctly will get your home sold faster and closer to your asking price.

?? Condition matters more than ever. With more inventory available, buyers are prioritizing move-in-ready homes. If your home needs updates, staging and minor repairs can significantly impact your final sale price.

Is This a Temporary Shift?

With demand still present and inventory growth slowing, this window for buyers may be brief. If interest rates stabilize or decline, we could see demand increase again, pushing the market back in favor of sellers.

At the same time, sellers who list too late may face a more competitive market as inventory rises throughout the year. Preparation now could mean a better outcome later.

Final Thoughts: Buyers & Sellers, The Time to Act is Now

?? Buyers: You have more options and negotiating power, but this window won’t stay open forever. Be ready to move when you find the right deal.

?? Sellers: The best listing window is approaching. Prepare your home now to maximize your sale price and attract serious buyers.

?? Want to stay ahead? I track Phoenix housing market trends every month. Sign up for my exclusive market updates to get the latest insights delivered straight to your inbox!