Phoenix home sellers offer more incentives to stay competitive amid declining sales

PHOENIX (AZ family) — If you're looking to buy a home, experts say now may be the time as sales drop and inventory rises in the Valley.

New data from ARMLS shows sales fell 7% and there was a nearly 6% increase in homes for sale in the Phoenix area.

Experts also say sellers are offering more incentives, suggesting a buyer's market throughout the Phoenix metro area.

“We’ve seen a lot of volatility in interest rates and the average rate has been around 7.9% since 1971, and it’s much lower than that now,” said Brannon Bartley, branch manager at Citywide Home Mortgage.

Everyone dreams of having the home of their choice, but Bartley says that hasn't necessarily been achievable lately.

“Most often, people are trying to get a deposit. We're seeing more and more donations from family members trying to help their son or daughter get into their first home,” he said.

Bartley has been a loan officer since 2005. He says mortgage rates have been falling since at least April.

If a further decline occurs, the market could heat up.

“As rates go down, it's going to create more purchasing power for people, so I think more people are going to come into the market,” he said.

It's something the Phoenix real estate market might need, as a recent report shows a decline in sales.

“Many sellers stay on the market longer than 33 days before the contract is signed, but they are showing a lot more patience with this marketplace right now.”

Tina Tamboer, senior housing analyst at The Cromford Report, says data like this brings good news, particularly in terms of price declines and incentives.

“Sellers who are willing to supplement the buyer's payments for a year or two and call it a 2-1 discounted purchase; that can give you an additional 20% off your first year's payment,” Tamboer said.

She adds that vendors are also making more efforts to stay competitive.

“A lot of other sellers are doing repairs, doing things to bring these not-so-perfect properties up to par so they can compete with all the other listings on the market today,” she said.

The median home price in Phoenix last month was $440,000, the same as in July. That's just $5,000 more than it would have been in 2023.

Real estate experts say prices for small family homes are falling here, while luxury homes in the Valley are rising or holding steady, mirroring the stock market.

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