07/15/2026
THE SUMMER SEASON IS UPON US!
For Buyers
There are advantages and disadvantages for buyers in today’s market. A major advantage is a lack of the frantic buyer urgency that was experienced in 2021, fueled by low supply and rapid population growth. Back then, buyers often only had a few minutes to tour a home, then felt pressured to waive appraisal and inspection contingencies as multiple offers flowed in. Asking for repairs was out of the question and 61% of sales were over asking price. Today, most homes are on the market for more than a month before landing a contract. Reduced buyer competition has made negotiations less stressful for buyers and increased seller willingness to offer repairs and closing-cost assistance. The disadvantage to buying in today’s buyer’s market is that home values tend to have low appreciation, no appreciation, or negative appreciation. Buyers typically like to purchase a home and watch it appreciate in value, but buyer’s markets can put a homeowner’s patience to the test. Those who purchase in this market should generally expect to own the home for at least 3-5 years to ride out the cycle. During that time, if a homeowner significantly improves the property it will improve their chances of building equity sooner. While appreciation has been limited recently, buyers who hold their homes through a full market cycle can still build substantial wealth through a combination of appreciation and mortgage principal reduction.
For Sellers
Buyer demand is up despite higher mortgage rates as listings under contract are up 5.1% and closed sales are up 7.6%. This year’s buyer’s market, while not ideal, is an improvement over last year. There is evidence of pent up demand that is often revealed once mortgage rates push below 6.5% and increases when it’s closer to 6.0%. However, Greater Phoenix is now entering into its summer season. This comes with hotter weather, and a few holiday speed bumps starting with Memorial Day week. Whenever there is a 4-day work week buyer contract activity takes a dip, and this Memorial Day was no different, dropping 21% over the course of 2 weeks. Then, just as activity begins to recover, the market encounters the Fourth of July holiday week, followed by Labor Day. Many sellers have decided to wait it out. New listings are added at the 2nd lowest rate seen since 2000, the fewest new listings were added in 2023 and 2026 looks like it will be in second place. Meanwhile, cancelled listings are up seasonally, but down year-over-year, which is also contributing to a decline in supply. What to watch: Last year mortgage rates fell from 6.6% to 6.1% from August to September. That resulted in a spike of buyer contracts until Labor Day week hit and contract activity cooled. If that happens again this summer, sellers could see a better boost in buyer demand.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2026 Cromford Associates LLC and Tamboer Consulting LLC
