By Sean Colón
Why Arizona realtors should welcome this market correction—and help their clients thrive in it.
For the first time in years, the Phoenix real estate market is beginning to breathe again. Gone are the frenzied weekends of double-digit offers and waived contingencies. In their place? Balance. And for Arizona realtors, that’s not just a welcome change—it’s an opportunity to reset the narrative and guide clients through a smarter, more sustainable housing landscape.
Let’s break it down: Despite sensational headlines predicting a crash, the numbers in Phoenix tell a more measured story. Home prices aren't plummeting—they're correcting. Demand is steady, not evaporating. According to recent MLS data, there are nearly 25,000 active listings in the greater Phoenix area. That’s not a warning sign; it’s a signal that the ultra-tight inventory of recent years is easing. Buyers now have more choice and more leverage. And sellers? They’re being nudged toward more realistic expectations.
What’s Driving the Shift?
Several factors are behind this market rebalancing:
Adjustable-rate mortgages are resetting, prompting some homeowners to list before payments spike.
Short-term rental saturation has reduced investor returns, leading to more listings.
Homeowners are simply ready to move again—after staying put far longer than in previous decades. (The average homeowner now stays in their home over 13 years, compared to just 6 in the early 1990s.)
Most importantly, home equity is strong. According to the National Association of Home Builders, U.S. homeowners have built up over $35 trillion in equity. In Arizona, over 90% of homeowners have positive equity—far from the underwater crisis of 2008.
What This Means for Arizona Buyers and Sellers
For Sellers
This is not the time to test the ceiling. Overpricing a home based on wishful thinking won’t fly in this climate. However, sellers who work with knowledgeable agents to price strategically are still moving their homes quickly—and often with multiple serious buyers. The key is realistic pricing, not outdated pandemic-era expectations.
For Buyers
The playing field has finally leveled. Bidding wars have cooled, and the pressure to act fast—or drastically overpay—has lifted. Buyers can now:
Take the time to evaluate listings.
Conduct thorough inspections.
Submit reasonable offers without being immediately outbid.
If mortgage rates soften later this year, as some economists expect, this could unleash a fresh wave of buyer activity in Phoenix, Chandler, and surrounding metros. That makes now a strategic window to enter the market.
For Arizona Realtors: A Time to Lead
With the market normalizing, the value of a great agent is back in the spotlight. Clients no longer need just a transaction facilitator—they need a steady guide. This is a golden opportunity to:
Reset client expectations about timelines, pricing, and negotiation.
Educate sellers about what’s moving (and what’s not).
Help buyers approach the market with confidence rather than fear.
Clear communication and honest pricing advice are your strongest tools in this more rational market.
Key Takeaways for Arizona Realtors
Inventory is healthy: Over 25,000 active listings across Phoenix signal improved buyer choice.
Equity is strong: Over 90% of Arizona homeowners are in a position to sell profitably.
Short-term rentals are waning, increasing resale supply.
Sellers must price smartly: Unrealistic expectations will stall listings.
Buyers have options again: Less pressure, fewer bidding wars, and more time to act.
Final Thought
This is the kind of market that rewards skill over luck. For realtors in Arizona, it’s a moment to step forward as educators, advisors, and advocates. The chaos of bidding wars is behind us—for now. In its place is a healthier, steadier market where both sides can win.
And that’s something worth celebrating.
By the way, I help realtors improve their online and social media presence by providing beautiful photos of their listings. That is why I’ve created this FREE HOME PREP LIST for your clients to help your listings look their best. Feel free to share.