Prices are down slightly, inventory is up, and homes are taking longer to sell. Here's what the Q1 2026 Phoenix market looks like and how to make your next move.

What does the Phoenix real estate market look like heading into Q1 2026?

If you've been keeping an eye on the greater Phoenix market, you've probably noticed things feel a little different lately. The pace has slowed, inventory has grown, and the dynamics between buyers and sellers have shifted. Whether you're thinking about buying, selling, or just want to understand what's happening in your neighborhood, here's a breakdown of what we're seeing right now.

Prices are softening, but they're not crashing.

Median home prices in the Phoenix metro area are sitting around the mid $400,000s, down about 2 to 5% compared to last year depending on the area. That's not a crash. It's a correction that reflects a market finding its balance after several years of rapid growth. The key takeaway here is that prices are adjusting, not collapsing, and the shift looks different from one community to the next.

Inventory is up significantly.

This is the big one. The number of active homes on the market has risen to 25,845 as of this filming, up 3.8% from last month and 16.5% from last quarter. That's a meaningful jump. For buyers, it means more options and more room to be selective. For sellers, it means more competition and less room for overpricing.

We're already seeing the effects of this. About one in four homes on the market right now have had a price reduction. That tells you that pricing correctly from the start is more important than ever. The days of listing high and hoping for multiple offers are behind us in most areas.

Homes are taking longer to sell.

The average time on the market right now is about 70 days. That's a noticeable shift from the fast pace we've seen over the last few years. Sellers need to be prepared for a longer timeline and make sure their pricing, presentation, and marketing are strong enough to stand out in a more crowded market.

Sellers should also know that concessions are now part of the conversation. Over half of the properties sold right now have sellers paying for buyer concessions, and the median amount is right around $10,000. That's a real cost to factor into your net proceeds, and it's something we help our sellers plan for upfront so there are no surprises.

“Prices aren’t crashing, but they are softening. Pricing correctly from the start is more important than ever.”

For buyers, this is actually a great opportunity.

You have more negotiating power, more choices, and a little more time to make decisions without the pressure of competing against ten other offers. We understand the rate situation is frustrating, and we don't expect that to change anytime soon. Rates will continue to go up and down. But when you see a sudden dip, it may be worth taking advantage and locking it in.

Overall, we're in a more balanced market that leans slightly in favor of buyers, with certain communities already in a heavy buyer's market. That said, there are always examples of homes selling in the first week on market at or above list price. The market isn't one-size-fits-all, and what's happening in one neighborhood may look very different from another.

If you're thinking about making a move or just curious what this means for your home specifically, reach out. We're always happy to help you think through your options. You can call us at 480-267-9368, email us at Office@GoodCompanyRE.com, or visit goodcompanyre.com for more information.