The Phoenix metro housing market continued its slow adjustment in August, with buyers gaining more leverage while sellers face mounting pressure. On the rental side, tenants still enjoy plenty of options as inventory remains elevated.
Sales Market Trends
- Active Listings: 20,379 – Up 24.5% YoY. Inventory is still high, though slightly easing compared to peak spring levels. Buyers have choices; sellers must sharpen pricing strategies.
- Median Sold Price/SF: $250.28 – Down 2.5% YoY. Prices continue their gradual slide, hitting the lowest point since early 2024.
- Days on Market: 65 – Homes are taking nearly a month longer to sell compared to last year, showing buyer hesitation and slower deal velocity.
- Mortgage Rates: 6.5% – The lowest since October 2024, giving buyers some relief, but affordability challenges remain.
- Building Permits: Builders have pulled back, with only 41,131 permits issued over 12 months—down sharply from spring highs.
Rental Market Trends
- Active Listings: 6,139 – Up 17.6% YoY. Supply is hovering at elevated levels, keeping pressure off renters.
- Median Rent/SF: $1.38 – Down 0.7% YoY. Rents have softened slightly after plateauing in spring.
- Days on Market: 35 – Rentals are sitting on the market longer, up nearly 17% YoY, as tenant demand spreads out across more options.
Why It Matters
- For Buyers: Slightly lower mortgage rates paired with higher inventory mean more negotiating room.
- For Sellers: Pricing correctly is critical—homes are taking longer to sell, and buyers know they have leverage.
- For Investors: Rental cash flows face mild pressure as supply builds and rent growth cools. Tenant demand is steady, but competition is growing.
Phoenix remains in a transitional phase: affordability is stretched, builders are cautious, and both sales and rental markets are shifting toward the buyer/tenant side.