Inventory Drops Sharply

What a difference a few weeks can make. While some headlines scream about inventory rising and sales stalling, that’s not the full story. The Arizona real estate market is shifting, yes, but it’s not collapsing. It’s maturing. Sellers are walking away from unrealistic pricing. Listings are coming down. And that’s not a problem. It’s actually progress.

Sellers Walk Away From Overpriced Listings

Delistings are way up. This is a clear signal that overpriced homes are not getting offers, and sellers know it.

• 47% more homes nationally were pulled from the market in May

• In Greater Phoenix, 30 homes were delisted for every 100 new ones

• That’s triple the delisting rate seen just a couple of years ago

Why are they walking? Because they can. High equity and low urgency give them room to wait. But this also reflects something deeper, it means the market has enough inventory that pricing too high no longer gets rewarded.

Also Read: Foreign Buyers Target Arizona’s Housing Market In 2025 Surge

Agents Need To Price It Right

This is where strategy matters. At Williams Luxury Homes, we take pricing seriously.

• Many agents take overpriced listings just to sit open houses

• That helps them meet buyers, but rarely helps sell the actual listing

• Sellers then waste time, lose momentum, and wind up frustrated

We don’t play that game. If a seller insists on pricing way above market, we’ll usually walk away from the listing. Why list something that won’t move? That helps no one.

Recently we wrote an article about why an open house isn’t always in your best interest, read it here.

Expired & Canceled Listings Pile Up

The proof is in the data.

• Over 1,000 listings expired in The Valley on July 1

• Weekly canceled listings are up to 516 compared to 359 a year ago

• These numbers are heading in only one direction

It’s a sign of restraint. Sellers are choosing not to chase a market that won’t support their price. That reduces noise and forces agents to be better advocates. That’s a win for the overall market.

Also Read: Greater Phoenix New Builds Stay Strong And Luxury Sells Out

Perspective On Inventory Levels

Inventory today feels high only because buyers and sellers got spoiled after 2020.

• Total inventory is still 13% below pre-pandemic averages

• But it’s way above what we saw during the supply-starved years of 2021 and 2022

• A post-COVID return to normal is not a bad thing

This isn't a collapse. It's a rebalancing. Rising inventory in The Valley doesn’t mean we’re crashing. It means we're slowly climbing back to historical averages.

Price Cuts Say Sellers Are Listening

We’re starting to see a reality check in how homes are priced.

• Over 20% of listings in June had a price cut

• Price per square foot has dropped from $368 to $347 this year

• But sale prices are still averaging $299 per square foot

That gap is real. Buyers are using it. Offers are still coming in, just not at 2022 fantasy prices.

Not All Offers Are Created Equal

Even with price drops, don’t expect to steal one.

• Most accepted offers land within 2% to 3% of asking

• Buyers submitting offers 10% below asking usually get a polite no

• Some sellers are offering $10,000 in concessions to bridge the gap

The message is clear. There's room to negotiate, but this isn’t a liquidation sale.

Also Read: Scottsdale’s 1% Apartment Law Sparks Housing Legal Firestorm

Buyers Still Taking Their Time

With inventory higher and homes lasting longer on the market, buyers feel no pressure.

• Homes now sit for about 53 days on average

• Contracts written remain low at around 2,782 per week

• Interest rates are steady around 6.67%

Buyers aren’t rushing. They’re watching, waiting, and choosing carefully. That’s what happens when they feel confident and informed.

A Healthy Thing

Our boutique firm of Arizona real estate agents see this as a healthy situation. Sellers who want unrealistic prices are stepping back. Buyers have space to think. And the market is no longer rewarding hype. That’s better for everyone.

Want a ZIP code-specific report or want to talk strategy? Let’s connect.