It’s been an emotional ride in the Phoenix real estate scene. For the better part of the last five years, we’ve been living in a high-stakes game where sellers held all the cards and buyers were left scrambling, often competing for the same home in bidding wars that pushed offers well over the asking price. Home inspections were waived, contingencies tossed aside, and the idea of negotiating was practically off the table.
But lately, the tide has shifted, and that’s not a bad thing.
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Despite recent chatter in the media predicting a looming collapse in home prices, the numbers tell a more grounded story. What we’re seeing isn’t a crash—it’s a correction. One that in the long run will benefit everyone in the marketplace. The market is finally at a level of balance that’s been missing for years, and for many in the industry, it’s a welcome change.
Let’s be clear: demand hasn’t dried up. Buyers are still buying. Homes are still selling. The difference now is supply. Inventory has grown, giving buyers more choices and, for the first time in a long time, a bit of breathing room. Sellers are no longer able to tempt the market with above market prices and expect multiple offers by the end of the weekend. And truthfully, that’s a much healthier dynamic for everyone.
Part of this uptick in listings can be traced to changing circumstances for sellers. Adjustable-rate mortgages are beginning to reset. Some investors who once cashed in on short-term rentals are seeing diminishing returns. Others are simply ready for a change after staying put for longer than expected—data shows Americans now stay in their homes more than twice as long as they did in the early 1990s. And with the amount of equity homeowners have built up, over $35 trillion according to the National Association of Home Builders, many are in a strong position to sell and walk away with a significant profit.
This isn’t 2008. Far from it. Back then, many homeowners were underwater. Today, more than 90% of homeowners have positive equity. That means the vast majority are not only secure, but also flexible—they can list their home without being forced into a short sale or foreclosure. That’s a huge distinction and one that signals long-term market stability rather than fragility.
So, what does this mean for people on either side of the transaction?
For sellers, it means adjusting expectations and pricing to market. When a home is priced correctly it will often sell quickly. But those who hope to set a new record for the neighborhood may find their listings sitting. For buyers, it’s time to re-engage. The fear of overpaying or being outbid has lessened. In many cases, they can take a breath, do their homework, and make an offer that feels reasonable rather than rushed.
And for real estate professionals, this is a moment to reset the conversation. Good agents are once again a valuable commodity. Their opinions can now carry weight to help clients understand where the market truly stands, not just what the headlines say. They can talk openly about pricing strategies, timing, and the emotional rollercoaster that can come with buying or selling a home in a shifting landscape. It is all about setting realistic expectations.
In the end, a balanced market is one where no one feels like they “won,” but both sides walk away feeling good about the deal they made. That’s where we are today, and frankly, it’s where we should be.
There are nearly 25,000 homes currently on the MLS in the Phoenix metro. That’s not a sign of collapse—it’s an opportunity. For buyers. For sellers. For everyone ready to make a move.
Despite the headlines, there’s no freefall, just a long-overdue reset. With more options and fewer bidding wars, buyers and sellers can approach the market with clearer expectations and a little less pressure. That’s not just healthier for the housing market, it’s healthier for everyone involved.
Author: Keith Mishkin is a licensed real estate Broker and the Founder/Owner of Cambridge Properties in Phoenix, Arizona.
