Phoenix Real Estate Market Trends for 2026: What Buyers and Sellers Need to Know

The Phoenix Metro real estate market is entering 2026 with strong momentum and evolving dynamics that both buyers and sellers should understand. As a luxury real estate specialist serving Scottsdale, Paradise Valley, Phoenix, and the East Valley, I'm seeing several key trends that are shaping our market.

Inventory Remains Tight in Luxury Segments

Luxury properties in Paradise Valley and North Scottsdale continue to experience limited inventory, with high-end buyers competing for well-appointed homes. Properties priced above $2 million are spending an average of 45 days on market, down from 67 days this time last year. This tightening reflects both strong demand from relocating buyers and limited new construction in these exclusive areas.

Interest Rates Stabilizing

After the volatility of recent years, mortgage rates have stabilized in the 6-7% range for conventional loans. While higher than the historic lows of 2020-2021, this stability is allowing buyers to plan with more confidence. Luxury cash buyers remain active, representing approximately 40% of transactions above $1.5 million.

East Valley Growth Continues

Gilbert, Chandler, and Mesa are experiencing robust growth, driven by families seeking newer construction, excellent schools, and more affordable price points compared to Scottsdale and Paradise Valley. The median home price in Gilbert has increased 8% year-over-year, reflecting sustained demand in this family-friendly market.

What This Means for Buyers

If you're looking to purchase in 2026, preparation is key. Get pre-approved early, work with an experienced agent who knows the luxury market, and be ready to move quickly on properties that meet your criteria. Off-market opportunities continue to be valuable for serious buyers seeking privacy and less competition.

What This Means for Sellers

For sellers, pricing strategy and presentation are more important than ever. Homes that are priced correctly and professionally staged are receiving multiple offers, often above asking price. Working with an agent who understands luxury marketing, professional photography, and strategic pricing will maximize your return.

Looking Ahead

The Phoenix Metro market remains one of the strongest in the nation, supported by continued population growth, a thriving economy, and Arizona's exceptional quality of life. Whether you're buying or selling, 2026 presents excellent opportunities for those who approach the market with the right strategy and expert guidance.