Phoenix Housing Market Shows Signs of Stabilization Amid Slowing Decline

The Greater Phoenix housing market continues to show signs of softening for sellers, but the downward momentum appears to be slowing. This week’s average change in the Cromford® Market Index (CMI) is -0.8%, a notable improvement compared to last week’s -1.7%. While conditions remain more favorable for buyers, the reduced rate of decline suggests that a market shift could be on the horizon. If current trends continue, next week may bring the first signs of stabilization or even a minor rebound for sellers.

Over the past month, four cities have shown improvements for sellers: Paradise Valley, Cave Creek, Goodyear, and Glendale. Paradise Valley stands out with an impressive 33% gain in its CMI, driven largely by a significant drop in active listings. This tightening supply has given sellers in PV a stronger position, at least for now. Meanwhile, Cave Creek, Goodyear, and Glendale have also made progress, although on a more modest scale.

The rest of the region continues to lean in favor of buyers, with 13 cities showing downward shifts in their CMIs. Avondale and Fountain Hills are leading this movement, reflecting growing inventory or weakened demand in those areas. As more choices open up for buyers, sellers in these cities may need to adjust pricing strategies or offer more incentives to remain competitive.

Overall, while the market still tips slightly toward buyers, the reduced negative momentum and upward trends in a handful of cities suggest that balance could return soon. Much will depend on how inventory and buyer activity evolve heading into the late summer months. Watch closely, a few more weeks like this could mark the beginning of a new phase in the Phoenix housing market.

"Don't count the days, make the days count."
- Muhammad Ali

Have a great week, everyone!