Phoenix Housing Market Slows Its Shift Toward Sellers

The Phoenix-area housing market continues to shift in favor of sellers, but the pace is beginning to slow. After weeks of steady upward momentum, the average monthly change in the Cromford® Market Index (CMI) dropped to 7.6%, down from 8.4% last week. While demand is climbing steadily, the supply side is also gaining steam. Many homeowners who canceled their listings during the slower summer months are now re-listing, contributing to a higher arrival rate of new listings than we've seen in the last two years.

Fourteen cities improved for sellers this week, while Paradise Valley, Glendale, and Maricopa tilted in favor of buyers. Tempe also showed a small turnaround. Among the strongest seller-leaning cities are Fountain Hills, Scottsdale, Peoria, Gilbert, Avondale, and Surprise. Interestingly, Paradise Valley, once the leader, is beginning to slide as inventory comes back on the market. If current trends continue, Fountain Hills may soon take the top spot.

There are now seven cities classified as seller's markets, with Gilbert newly joining the group. Three cities are in balanced territory, while seven remain buyer's markets. However, Peoria is on the verge of moving out of the buyer’s zone and could shift to balanced within days.

Affordability still plays a key role in determining which areas favor buyers. Many of the lower-cost regions remain buyer-friendly, though Avondale stands out as an exception. Its limited supply has made it far more competitive than similar price-point cities like Buckeye and Maricopa, giving sellers in Avondale a distinct advantage.

"Identify your problems but give your power and energy to solutions."
—Tony Robbins

Have a great week, everyone!