Phoenix—and the entire Arizona real estate market—is seeing a major shift. As of June 2025, housing inventory is at its highest level since November 2019, with 1.36 million homes for sale nationwide—a 17.2% increase over last year and 2.3% month-over-month. Zillow now classifies 22 of the 50 largest U.S. metros—including Phoenix-Mesa-Scottsdale—as “neutral” markets, meaning buyers and sellers have nearly equal bargaining power.
🧭 What This Means for Buyers
Less competition from other buyers; listings now sit an average 19 days on market (up from 15 in 2024, and 11 in 2023).
Nearly 27% of listings had price cuts in June, a record for that month.
Phoenix saw 35% of active homes receive price reductions, among the highest national levels.
Buyers now enjoy more negotiating power, but affordability—especially for first-timers—remains a major barrier due to high home prices and mortgage rates.
For Realtors: Empower your buyer clients with data-backed negotiation strategies, emphasize financing flexibility, and cast a wide net across evolving price-sensitive segments.
💼 What Sellers Need to Know
Sellers must brace for negotiation: homes are selling for approximately 97% of list price on average
Pricing too high or staying static too long can result in stale listings—in Phoenix, nearly 47% of listings lingered over 60 days as of April 2025 Axios.
Some sellers are choosing to delist temporarily rather than continue painful price cuts—Phoenix delistings climbed 47% year-over-year in May 2025, often used as a reset strategy by equity-rich homeowners
For Realtors: Open conversations are essential. Help sellers understand where market expectations meet reality; a relisting strategy or slight concession—like covering a rate buydown—can revive an offer.
✅ Realtor Playbook: Thrive in Arizona’s Neutral Market
For Buyers: Highlight leverage opportunities, assist with offer timing, and use negotiation tools to build winning bids.
For Sellers: Price with precision—not expectation—consider staged photos or enhanced marketing to attract buyers quickly.
Both sides benefit from data: Share transparent market stats, price cut trends, and up-to-date inventory analysis to build credibility.
Use pricing psychology: Even small price downward adjustments trigger more search visibility—just below key thresholds.
🗣 Bottom Line
Inventory is climbing and the balance of power is shifting. Yet while more buyers are back in control, affordability barriers persist—especially in metro areas like Phoenix and Scottsdale. For agents, the opportunity lies in leveraging data, reinforcing market clarity, and guiding clients with nuance in this newly “neutral” environment. With the right tactics, listings still sell; with passion and insight, your value as an Arizona real estate pro has never been more visible.