January's pivot brings new listings, lower rates, and solid conditions. Here’s why the next few weeks could be crucial for your plans.

Is the Phoenix housing market finally shifting in your favor? The latest numbers from January are in, and they tell an interesting story for both buyers and sellers. Let’s break down what’s happening right now, what it means, and why the next few weeks could be important if you’re thinking about buying or selling.

Inventory. Active listings dropped about 9% to 10% from December to January, which is pretty normal for the holidays. But here’s the good news: we actually have about 12% more homes available than we did at the start of 2025.

That means buyers still have plenty of options. On top of that, we’re expecting a wave of new listings over the next 8 to 12 weeks, including homes that were pulled or expired late last year.

Recent sales performance. December surprised a lot of people with strong closings—over 6,300 homes sold, which is up more than 14% compared to last year. That’s also accounting for the fact that December had one extra working day.

Even with that, sales significantly outperformed expectations. As a result, the number of homes under contract dipped about 20% month over month, but it’s still up more than 5% compared to last year. All in all, demand remains healthy.

“We’re seeing new listings coming onto the market, and interest rates are lower than most of last year.”

Pricing trends. Home prices have edged up a little, with the median sales price now around $455K—just over $5K higher than last year. The price per square foot is basically flat year over year.

Having stability is good news because it reinforces confidence without hurting affordability. Since household incomes grew faster than home prices last year, this is exactly what a more balanced market looks like.

January is really a pivot point. We’re seeing new listings coming onto the market, and interest rates are lower than most of last year. This could create even more momentum in the weeks ahead. Overall, the greater Phoenix market is moving back toward balance. Conditions look solid for buyers and even better for sellers than what we saw for most of 2025.

If you’re wondering how these numbers affect your specific situation, it makes sense to take a closer look. Reach out anytime at 480-267-9368 or send an email to Office@GoodCompanyRE.com. I’m happy to walk you through a strategy that fits your goals and help you make the most of the current market.