By Sean Colón
Arizona’s real estate market is finally seeing a long-anticipated shift—and Phoenix is at the heart of it. According to Zillow’s latest market report, Phoenix ranks among the top five U.S. cities with the highest rate of home price cuts. With inventory hitting a five-year high and demand softening, savvy Arizona realtors now face a dramatically different landscape than in recent years. But with change comes opportunity—for both your clients and your brand.
Arizona's Market Is Cooling, But It’s Far From Cold
After nearly five years of sellers calling the shots, Phoenix is now seeing a more balanced dynamic between buyers and sellers. In June, 35% of Phoenix home listings had a price cut, among the highest in the nation, just behind Denver, Raleigh, and Dallas. That’s a signal to Arizona agents: the seller’s market is no longer automatic.
Listings are sitting longer: The average days on market has risen to 19—still fast historically, but slower than 11 days in 2023 and 15 days just a few months ago.
Inventory is climbing: There were 1.36 million homes for sale nationwide in June—a 17.2% increase year-over-year and the highest since November 2019.
Fewer new listings: While inventory is up overall, new listings dipped by 10.9% from May to June, following seasonal patterns.
This means Arizona buyers have more homes to choose from—and they’re taking their time. For realtors, this is a chance to sharpen pricing strategies, polish marketing assets, and attract both buyers and sellers who may be feeling hesitant in the current climate.
Why This Shift Matters to Arizona Realtors
The big takeaway? Balance has returned—but that doesn’t make the market easy. Instead, it makes it strategic. Buyers now have more leverage and more time, but affordability is still a huge challenge, especially for first-time buyers.
Kara Ng, a senior economist at Zillow, puts it clearly: “While negotiating power is more balanced, the affordability crisis remains a high barrier to entry.”
This is particularly important for Arizona, where affordability remains a hot-button issue. With mortgage rates still elevated and home values flat, your role as a knowledgeable, creative, and solution-oriented agent is more valuable than ever.
Expert Tips for Navigating Today’s Phoenix Market
Here’s how Arizona real estate agents can turn this market shift into a client-winning advantage:
✔ Educate your sellers on realistic pricing and the need for standout marketing. With 35% of Phoenix listings seeing cuts, it's critical to price strategically from the start. Use data to support your recommendations.
✔ Lean into professional photography and virtual staging to make listings pop online. With buyers browsing longer and comparing more listings, visuals matter more than ever. (If you're a builder, virtual staging is an especially powerful tool—see this blog post for more.)
✔ Reinforce your value with potential buyers by offering expert negotiation skills and clear-eyed affordability coaching. Tools like Zillow’s Affordability Calculator can help clients make informed decisions.
✔ Watch inventory trends closely. While inventory is up 17.2% year-over-year, it’s still 21% below pre-pandemic June levels. Knowing your local numbers can help you manage client expectations on both sides.
The Bottom Line for Arizona Realtors
The Phoenix real estate market isn’t crashing—it’s correcting. And for agents who stay informed, proactive, and flexible, this new “neutral” territory offers plenty of room to thrive. With more inventory, longer decision windows, and greater emphasis on presentation, now is the time to double down on marketing strategies and provide the kind of expertise that reassures nervous buyers and pragmatic sellers alike.
This summer, the most successful Arizona realtors won’t just ride the wave of the market—they’ll guide their clients through it with confidence.
Want more insights like this?
Check out my blog archive for up-to-date Arizona market tips, listing strategies, and expert photography insights tailored for realtors and home builders.
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.