For years, home buyers in Arizona faced mounting obstacles, including fierce competition, rising prices and limited inventory. Today’s market, however, points to a change in those trends as the Arizona market is moving closer to a buyer’s market. 

Realtor.com recently reported that Phoenix led the nation in delistings in May 2025. While sellers still hold considerable sway, there are growing signs that buyers are gaining more leverage.

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Market Conditions Are Becoming More Buyer-Friendly

In many markets, homes are now selling for about 2% below the list price and take around 57 days to go pending. That’s a clear shift from the bidding wars and quick cash offers of recent years. That’s a clear shift from recent years when bidding wars and cash offers were more common.

According to Freddie Mac’s Primary Mortgage Market Survey, current mortgage rates—though higher than during the pandemic—are in line with recent historical averages, with the 30-year fixed rate at 6.58% as of mid-August 2025. Buyers who purchase now can always refinance if rates drop in the future, allowing them to secure a home at today’s prices while keeping the door open for lower monthly payments down the line. 

Down payments don’t have to be a barrier

Many people still believe the myth that you need a 20% down payment to buy a home. However, lenders today offer low down payment mortgage programs for qualified buyers.

In fact, many first-time home buyers may qualify for 0% down, while others may qualify for as little as 3% down. 

These options make it possible for more people to become homeowners without waiting years to build a large nest egg. With personalized support from a local lender, buyers can find a path that fits both their financial situation and their long-term goals.

More than just temporary rate relief

Some new home builders often promote temporary buydowns that reduce interest rates for the first year or two. While this can offer initial relief, these programs don’t always address long term affordability. Some select lenders offer permanent buydowns or incentives that lower the interest rate over the life of the loan. 

There are also more durable solutions available. For example, seller paid closing costs can be applied toward discount points to permanently lower a loan’s interest rate. That can result in meaningful monthly savings for the life of the loan.

Demand in Phoenix remains strong

Phoenix continues to attract new residents, especially from California, Texas and Colorado. This ongoing migration helps support long-term property values and adds stability to the local market.

For buyers, that means homes purchased today are likely to continue to appreciate, or increase in value, over time, especially in high-demand areas.

The current real estate landscape isn’t a simple tug-of-war between buyers and sellers. It’s a dynamic environment shaped by shifting interest rates, migration trends and changing buyer and seller behavior. Buyers who understand the tools available to them and maintain a long-term perspective may find that now is a good time to act, even if the headlines suggest otherwise.

For more information about mortgage options at Desert Financial, including its Community Heroes First-Time Homebuyer program that requires no down payment and no private mortgage insurance (PMI) for education workers, military members, medical workers, first responders and government workers, visit DesertFinancial.com/CommunityHeroes.

Author: Larry Jackson is vice president of First Mortgage at Desert Financial Credit Union.