The 2026 Arizona Housing Market Forecast: What Buyers & Sellers Should Know

The 2026 Arizona Housing Market Forecast: What Buyers & Sellers Should Know

As we close out 2025, the Arizona real estate landscape is already shifting in ways that will matter for buyers and sellers heading into 2026. Here’s a clear, fact-based look at what to expect in the Phoenix metro — with specific insight into Gilbert, Chandler, Queen Creek, Scottsdale, and master-planned communities like Waterston.

1. Inventory Will Rise, But Demand Will Still Outpace Supply

After several years of historically low inventory, listings gradually increased throughout 2025. In 2026, we can expect:

• More homeowners choosing to list due to regained equity
• Steady new-construction activity across the East Valley
• A more balanced market — but not a full shift to a buyer’s market

Even with added inventory, Arizona’s population growth continues to keep demand strong, especially in family-friendly and amenity-rich communities.

2. Interest Rates Are Expected to Gradually Ease

Most national forecasts point to modest rate improvements in 2026, not dramatic drops.
This still matters: even small movements in interest rates can bring more buyers back into the market, especially move-up buyers who paused their plans in 2024–2025.

Expect slightly improved affordability — and more buyer activity — as rates normalize.

3. Relocation Demand Will Stay Strong

Arizona remains one of the top inbound states, supported by:

• Healthcare expansion (Mayo Clinic, Banner, Dignity)
• Technology and semiconductor growth
• Finance and education hiring
• Continued migration from colder, higher-cost states

Relocators tend to focus on the East Valley for schools, lifestyle, and proximity to employers — which keeps demand high in areas like Waterston, Morrison Ranch, Layton Lakes, Agritopia, and North Scottsdale.

4. New Construction Will Be a Major Player

Builders are expected to continue offering incentives such as:

• Rate buydowns
• Closing cost credits
• Move-in-ready inventory

This gives buyers more choices and keeps resale homes competitive. Nearby resale communities often benefit from improved pricing confidence.

5. Sellers Should Prioritize Presentation in 2026

Buyers continue to prefer move-in-ready homes with:

• Neutral design
• Energy-efficient features
• Updated kitchens and bathrooms
• Functional outdoor spaces

Homes that show well will continue to command stronger prices and shorter days on market.

6. Buyers Will Have Their Best Opportunity Early in the Year

January through March often brings:

• Fresh inventory
• Motivated sellers
• Less competition than late spring and early summer

If you’re planning to buy in 2026, early Q1 is typically the most favorable time before relocation season spikes.

What This Means for You in 2026

Sellers:
Prepare early and price strategically. Well-presented homes will continue to perform strongly.

Buyers:
Watch the early months of 2026 — a combination of more inventory and easing rates offers opportunity.

Relocators:
Start the planning process now. The East Valley moves fast, and the most desirable homes go quickly.

Ready to Make a Move in 2026?

Whether you’re selling, buying, or relocating, I can help you build a strategic plan based on your goals and current market conditions.

📩 Message me anytime — I’m here to help.