May 2026
Sales Market
Active Listings: 21,908 (-7.2% YoY)
→ Inventory continues to tighten across the metro area, marking one of the largest year-over-year declines we’ve seen since inventory peaked in 2025.
Median Sold $/SF: $253.94 (-1.0% YoY)
→ Home prices remain slightly below last year, but the pace of decline continues to moderate, suggesting pricing is stabilizing.
Average Days on Market: 56 (+5.7% YoY)
→ Homes are taking slightly longer to sell than last year, though market timing remains healthy and relatively balanced.
30-Year Mortgage Rate: 6.52%
→ Rates moved higher from April and remain one of the primary headwinds for buyer affordability and demand.
Rental Market
Active Listings: 4,604 (-11.2% YoY)
→ Rental inventory continues to tighten significantly, reflecting a major shift from the oversupplied rental conditions experienced throughout much of 2025.
Median Rented $/SF: $1.35 (-1.5% YoY)
→ Rental pricing remains slightly below last year, though rents have held remarkably stable despite ongoing economic uncertainty.
Median Days on Market: 33 (+6.5% YoY)
→ Rentals are taking slightly longer to lease than last year, suggesting renters remain price-conscious despite reduced inventory.
Key Takeaways
- Sales inventory continues to contract year-over-year
- Home prices are stabilizing and nearing flat year-over-year performance
- Higher mortgage rates remain the biggest challenge for buyers
- Rental inventory continues to tighten significantly
- Rental pricing remains relatively stable despite lower supply
- The market is becoming more balanced as excess inventory from 2025 is absorbed
Overall
The Phoenix Metro housing market continues its gradual transition toward stabilization. Inventory on both the sales and rental sides has declined substantially from last year’s elevated levels, creating healthier supply conditions. While mortgage rates remain a challenge and continue to limit affordability, home prices have largely stabilized and rental rates have remained resilient.
The biggest story in May is the continued reduction in available inventory. What was once a rapidly expanding supply environment throughout 2025 has shifted into a tightening market across much of Maricopa and Pinal Counties. While this doesn’t necessarily signal a return to the ultra-competitive markets of previous years, it does suggest the Phoenix Metro market is moving toward a more balanced environment where neither buyers nor sellers hold a significant advantage.