Phoenix Housing Market Softens Further as Buyer Leverage Grows

The real estate market has continued its gradual decline in favor of buyers, showing further deterioration for sellers over the past week. According to the latest Cromford® Market Index data, only four cities have improved for sellers in the past month, one less than the previous week, while thirteen cities have shifted further toward buyer-friendly conditions. The average change in CMI stands at 4.6 percent, a deeper drop compared to last week’s 4.1 percent, signaling that the market is becoming increasingly challenging for those looking to sell.

The most significant declines have occurred in Chandler, Scottsdale, Gilbert, and Glendale, where seller leverage has diminished at a faster pace. On the flip side, Maricopa has shown the most improvement for sellers; however, it still hasn’t overtaken Buckeye in terms of overall market strength. This overall negative trend is gaining momentum, suggesting that sellers may need to adjust pricing and expectations if they want to stay competitive. The pressure continues to build as the market softens across most major Phoenix-area cities.

Currently, only three cities qualify as seller’s markets, and even those are considered very weak. Eight cities are balanced, where neither buyers nor sellers have a distinct advantage, and six are now classified as buyer’s markets. These classifications remain unchanged from last week, reflecting a consistent trend that indicates more cities are likely to shift into buyer's territory if current dynamics persist.

Compounding the challenge for sellers is the ongoing increase in housing supply. While the first week of May offered a brief pause in rising inventory, the second week saw the upward trend resume. At the same time, demand continues to decline from already low levels. This combination of increasing supply and weakening demand is further tipping the scale in favor of buyers, suggesting that sellers will need to stay strategic and proactive as conditions become more competitive.

"You don't have to be great to start, but you have to start to be great."
-Zig Ziglar

Have a great week, everyone!