The Greater Phoenix Area

Supply continued to fall throughout December, and we ended the year down 10% from the end of November. However, we still have 12% more supply than we had at the start of 2025, so plenty of choice remains available for most buyers.

We would also expect a lot of new listings over the next 12 weeks, some of which are going to be homes whose listings were cancelled or expired in the last 2 months.

The month of December was relatively strong for closings, with more expensive homes dominating in the first 2 weeks and less expensive homes growing more numerous in the last week of the year. The total closing count of 6,374 was up more than 14% compared with December 2025.

Sales prices up slightly year over year reinforce confidence in the market, but improve affordability because median household incomes rose faster than home prices last year.

Everything now depends on how trends develop during January. Will we see a strong flow of new listings (as we did in 2025) or will supply remain subdued as it was in the last 2 months? Will demand benefit from interest rates, which are currently lower than almost the whole of 2025?

Overall, things look good for buyers and better for sellers than they experienced during most of last year. But the next few weeks are key to whether that outlook holds.