Market Update August 25, 2026
If you’ve been wondering what is happening in the Phoenix housing market, the short answer is: the market has cooled, buyers have more choices, and sellers need to be more strategic—but this is not a market that has stopped moving. Most areas of the East Valley continue to experience slow sales, high numbers of homes for sale, and price softness. Buyers have most of the negotiating power, while well-priced and well-presented homes continue to attract attention.
Buyers Have More Leverage
Across the Phoenix metro area, the market has been showing clear signs of cooling. Listing prices declined year-over-year in a large majority of Phoenix-area ZIP codes in July, while the median price of existing single-family homes remained relatively stable. Mortgage rates, however, remain a significant factor, with the average 30-year rate at around 6.75%.
For buyers, that creates an important opportunity. There are more homes to choose from, fewer situations where buyers have to compete aggressively against multiple offers, and greater opportunity to negotiate on price, repairs, closing costs and other terms. That doesn't mean every seller is willing to make a major concession—but today's buyer generally has much more leverage than they did a few years ago.
Gilbert: Desirable, But More Negotiable
Gilbert continues to be one of the East Valley's most desirable communities, but the numbers show a more balanced market. As of early August, Gilbert single-family homes had approximately 2.6 months of supply, with a median sold price of about $627,000. Homes that sold were averaging about 68 days on the market and approximately 97.6% of the asking price.
That last number is particularly important for sellers in all areas of the valley. Pricing a home correctly from the beginning matters. Buyers are increasingly willing to pass on an overpriced property rather than writing an offer for what the home is actually worth. This causes even moderately overpriced homes to sit on the market.
Chandler and Mesa Offer Different Opportunities
Other areas of the East Valley remain fairly strong with a broad range of housing options, from established neighborhoods to newer construction. In Chandler, the median list price is currently $659,000, and closed sales in July were up slightly from last year. At the same time, the listing success rate (listings that actually sold) declined, illustrating the importance of proper pricing and presentation.
Mesa offers some of the East Valley's more accessible price points, making it attractive to buyers who may be priced out of some of the newer or more expensive communities. For buyers, Mesa can provide an opportunity to find value, particularly when comparing price per square foot and neighborhood amenities rather than simply focusing on the newest home available.
Queen Creek remains a popular destination for buyers looking for newer homes, larger lots, newer amenities, and a more suburban lifestyle. Current market data shows Queen Creek with approximately 3.7 months of supply, meaning there are plenty of homes to choose from. The median list price is around $760,000. While recent median sold prices have been lower, highlighting the gap between what sellers would like to receive and what buyers are actually willing to pay.
What Does This Mean for Sellers?
The days of simply putting a home on the market at an aggressive price and expecting multiple offers are gone. Sellers need to pay close attention to comparable sales, condition, presentation and current competition. And they need to constantly reevaluate their pricing while the home is on the market. A home that is priced correctly, professionally marketed, and move-in ready can still generate strong interest. But an overpriced home can sit. And the longer a property remains on the market, the more likely buyers are to wonder what is wrong with it—even when there is nothing wrong at all.
What Does This Mean for Buyers?
This is one of the better opportunities buyers have had in several years to negotiate. Although interest rates remain elevated compared to 6-9 months ago, you may have more time to compare homes, conduct proper due diligence, and negotiate terms that weren't realistic during the peak of the seller's market. Many buyers, wanting to get in the market when prices are soft, are dealing with the higher payment in the near-term, then looking to refinance once rates become more favorable.
The Bottom Line
For buyers, it means understanding where sellers have flexibility and where competition remains strong. This means knowing the local area, and knowing how and what to negotiate to get the best deal.
For sellers, it means knowing exactly what your home is worth today, not what your neighbor's home sold for two years ago. It means understanding the competition in the neighborhood and knowing what buyers are prioritizing, then pricing accordingly.
Real estate is always local. Homes within the same city, neighborhood, subdivision and price range can tell very different stories. If you're thinking about buying, selling or investing anywhere in the Phoenix metro, call us. We'd be happy to provide a personalized market analysis (it’s free) and help you understand what today's market means for your specific situation.