Greater Phoenix Market Update
Another month, another real estate market update here on LUXE BLOG from Williams Luxury Homes. The Arizona real estate market is always shifting, and right now, it’s showing some distinct trends. With builders adapting, luxury sales surging, and interest rates playing their usual games, there’s a lot to cover. So, let’s get straight into what’s happening across The Valley.
More Leverage, But At What Cost?
For months, industry experts have debated whether the Greater Phoenix Metro is truly a buyer’s market. The answer? Yes and no.
- Depends on the area, city, and/or niche.
- More listings than buyers = leverage for home shoppers.
- Mortgage rates have dipped, slightly improving affordability.
- Pending sales remain sluggish, with a 6.3% drop in January.
- Home price growth is cooling, but sellers still hold firm in some areas.
- Luxury? That’s a different story.
While buyers have more choices and negotiating power, the overall cost of homeownership remains a hurdle. Many are waiting for a bigger drop in mortgage rates before jumping in. For those ready to buy now? There are deals to be had, especially with new home builders offering incentives to move inventory.
Also Read: Latest On The Estate Homes At The Ritz-Carlton, Paradise Valley
Builders & Developers Get Creative
With construction costs rising, developers are looking for ways to keep projects moving and attract buyers.
- High rental prices are pushing more people toward homeownership.
- Spec homes and incentives are helping clear out inventory.
- Large master-planned communities like Teravalis in Buckeye are on the way.
- Some developers are shifting focus due to Arizona’s water concerns.
Despite supply chain issues and labor shortages, builders remain optimistic about Phoenix’s long-term growth. Affordability is a challenge, but demand for housing isn’t going away anytime soon.
Luxury Market: A Different Animal
Forget everything we just said about a buyer’s market. When it comes to high-end real estate? Greater Phoenix is alive and well.
- Paradise Valley, Arcadia, and Silverleaf are hitting $2,000 per square foot in some cases.
- Luxury sales jumped 12.3%, with median prices soaring from $1.5M to $2M.
- Ultra-luxury spec homes are popping up, but some worry there may not be enough buyers.
- Cash buyers dominate this space, making mortgage rates irrelevant.
- Upcoming projects such as Summit by Olsen Kundig and Optima McDowell have strong demand.
While the broader market softens, high-net-worth individuals are still snatching up luxury properties, driving up prices in The Valley’s most coveted zip codes.
What’s Next? Watching Supply & Demand
Right now, we’re in a market reset. Supply is rising, price cuts are increasing, and buyers are taking their time. But demand hasn’t disappeared.
- Months of supply sits at 4.3, higher than recent years but still manageable.
- Active listings continue climbing, giving buyers more options.
- More homes are hitting the market than last year, especially in February.
- Some areas remain seller-friendly, while others are prime for negotiation.
With spring homebuying season around the corner, all eyes are on mortgage rates and inventory. If rates tick down further, expect a surge in activity. If they hold steady? We may continue this slow, steady adjustment.
Final Thoughts
The Greater Phoenix housing market isn’t one-size-fits-all. Luxury is strong, new construction is adapting, and resale homes are adjusting. If you’re buying, selling, or investing, strategy matters more than ever. Stay informed, work with professionals who know the nuances of each area, and make your move when the timing is right.
Check back next month for the latest on what’s happening in one of the country’s most fascinating real estate markets!