For Buyers
Recent global events have pushed mortgage rates back up closer to 6.4%, impacting overall affordability. For many buyers, this translates to approximately a 5% increase in monthly payments or a similar reduction in purchasing power. As a result, some are choosing to pause and watch where rates settle.
However, if rates ease again, we could see a quick resurgence in buyer activity.
Despite this, the market has remained active. Contracts in escrow are currently up 10.2% compared to last year, outperforming both 2023 and 2024 at this point in the season. Earlier momentum was driven by mortgage rates stabilizing below 6.2% since Christmas, briefly dipping to 5.99% in late February.
While overall demand in Phoenix remains about 13% below normal, this is a notable improvement from recent months.
At the same time, new listings have slowed, down approximately 7% in February and March. With fewer homes coming to market, inventory growth has begun to level off—potentially tightening conditions as we move further into the season.
For Sellers
In the luxury segment, we are seeing meaningful signs of strength, particularly at the upper end of the market.
Sales above $3M are up 26% year-to-date, with an impressive number of transactions already exceeding $10M—well ahead of last year’s pace. This indicates that well-qualified buyers remain active and engaged, especially for properties that truly stand out.
That said, today’s market still requires thoughtful navigation.
Demand is improving, but it is not evenly distributed. Within North Scottsdale, we are seeing a clear separation between homes that are well-prepared and properly priced, and those that are not.
Today’s luxury buyer is highly selective—focused on quality, condition, and overall value.
Inventory has begun to stabilize as fewer new listings come to market, which is helping to reduce competition. However, this is not a market where we can rely on momentum alone.
Presentation, pricing, and timing matter more than ever.
Our guidance to sellers remains consistent: approach the market with patience and precision. Homes that are positioned correctly from the outset are the ones achieving the strongest results.
