If you’re wondering what’s really happening in the Phoenix housing market, the January 2026 data tells a clear story: inventory is up, demand is steady, and the market is shifting toward balance — especially compared to the frenzy of prior years.

Here’s what buyers, sellers, and relocating homeowners need to know.

📈 Inventory Is Rising — Buyers Have More Choices

• Active listings: 27,804 homes (up significantly year-over-year)

• Months of supply (excluding new builds): ~4 months

• Cromford Market Index: 86.1 (still a seller’s market, but softening)

👉 Translation: Buyers finally have options, and sellers must price and prepare their homes strategically to compete.

⏳ Homes Are Taking Longer to Sell

• Average days on market (sold homes): 92 days

• Active listings DOM: 98 days

• Up from this time last year

This means overpricing is punished quickly, and well-prepared homes are winning.

💰 Home Prices Are Holding — Not Crashing

• Average sold price: $645,217 (↑ year-over-year)

• Median sold price: $448,000 (slightly down month-over-month)

• Price per square foot (sold): $314.80 (up YOY)

Despite more inventory, prices remain resilient, especially for well-located, move-in-ready homes.

📉 Sellers Are Negotiating More

• Sale-to-list price ratio: 97.17%

• Listing success rate: 68.9%

Sellers are offering price adjustments, concessions, and closing cost incentives — particularly in higher price points and competitive neighborhoods.

🏡 Buyer & Seller Takeaways

For Buyers

✔ More negotiating power
✔ More inventory to choose from
✔ Less competition than past years

For Sellers

✔ Pricing correctly matters more than ever
✔ Presentation and marketing are critical
✔ Strategy beats emotion in today’s market

📌 Bottom Line

The Phoenix real estate market in 2026 is no longer a frenzy, but it’s also far from a downturn. We’re seeing a healthier, more balanced environment — and that creates opportunity for buyers who act strategically and sellers who adapt.

If you’re planning to buy, sell, or relocate to Arizona, understanding this data — and how it applies to your price point and neighborhood — is everything.

If you have questions or you're considering buying in the Phoenix area, book a consultation.