Phoenix Home Prices Slide Fast, West Cooling Intensifies
Why Are Phoenix Home Prices Falling in 2026? Although Phoenix’s economy remains stable, home prices are sliding in early 2026 as inventory expands and buyer urgency fades. Inventory is up 13.03% YoY , reinforcing the shift. New listings rose in January, and quick move-in supply is among the nation’s highest, near five homes per community. Inventory Shock Months of supply is 2.4, shifting leverage toward buyers and away from sellers. Some investors are watching algorithmic forecasts that point to wide-ranging 2026 outcomes as volatility reshapes expectations. Median price slipped 2.2% year over year to $450,000, while price per square foot fell 2.8% to $276. Demand Pullback Buyer sentiment is cautious despite 2% growth in high-income jobs and expanding manufacturing. Homes now take about 71 to 72 days to sell, drawing roughly two offers and closing at a 96.92% sale-to-list ratio. Builder incentives and mortgage rates near 6.23% soften payment shock, yet climate concerns add hesitation ...