Some Phoenix sellers are pulling homes off the market and turning them into rentals instead. See how this shift affects both buyers and sellers.

Have you noticed how the housing market feels… different lately? In the past three months, I’ve seen more canceled listings than in any other three-month period over the last ten years. It’s not that those homeowners don’t want to sell; they’re just not willing to drop their prices. To give you a clearer picture of what’s happening now, here’s a quick update on Phoenix’s real estate market.

Listings and prices are shifting. In Greater Phoenix, active listings have been dropping by about 1,000 homes each month for the past three months. Back in April, there were around 24,400 homes on the market. Now, that number is just under 21,000.

The median sales price reached its peak in May 2022 at $480,000. Today, it’s closer to $445,000. This isn’t a market crash, but more of a correction after a rapid surge in prices.

Over the last two years, values have stayed fairly stable, largely because most homeowners have solid equity and low mortgage rates. They’re in no rush to sell unless they truly want to.

“If you can afford to buy right now, it could be worth making a move.”

The rental shift. Some of the properties that were investment homes have been pulled from the sales market and turned into long-term rentals. Even some owner-occupied homes are being converted into rentals instead of being sold. That’s part of why we’re seeing fewer active listings.

What this means for buyers. Here’s the thing: while most sellers aren’t slashing prices, there are still opportunities out there. Some homeowners are willing to take a reasonably low offer just to move on, and these aren’t all fixer-uppers; some are actually move-in ready. We don’t know how long this window will last, so if you can afford to buy right now, it could be worth making a move.

What this means for sellers. On the other hand, if you don’t have to sell, it might make sense to wait. But if you are motivated, there’s still activity, and you just have to be realistic about your pricing.

This market is forcing all of us to be patient, but it’s also creating unique situations for both buyers and sellers. If you’re ready to buy, I’d love to help you find the right deal. Give us a call at 480-267-9368 or send an email to Office@GoodCompanyRE.com.  At Good Company Real Estate, we have the skills and experience to make it happen, and we’re happy to do it.