Phoenix home sellers offer more incentives to stay competitive amid drop in sales

PHOENIX (AZFamily) — If you're looking to buy a home, experts say now may be the time as sales slump and inventory increases in the Valley.

New data from ARMLS shows that sales dropped 7% and there was a near-6% jump in homes for sale in the Phoenix-area.

Experts also say sellers are offering more incentives, suggesting a buyer's market across metro Phoenix.

"You've seen a lot of interest rate volatility and the interest thing is the average rate is about 7.9% since 1971, and it's a lot lower than that now," said Brannon Bartley, branch manager with Citywide Home Mortgage.

Everyone dreams of their forever home, but Bartley says it hasn't necessarily been attainable recently.

"The biggest thing you see is people trying to get the down payments. You're seeing a lot more gifts from family members trying to help out their son or daughter trying to get into their first home," he said.

Bartley has been a loan officer since 2005. He says mortgage rates have been going down since at least April.

If there is another decrease, the market could heat up.

"As rates drop, that's going to create more buying power for people so you are going to see more people get into the market I think," he said.

It's something the Phoenix housing market could use, as a recent report shows sales dipping.

"Plenty of sellers are going more than 33 days on the market prior to contract, but they're showing a lot more patience with this marketplace right now."

Tina Tamboer, a Senior Housing Analyst with the Cromford Report , says there is some good news with data like that, including price cuts and incentives.

"Sellers that are willing to supplement the buyer's payments for a year or two and they call that a 2-1 buydown; that can give you an extra 20% off of your first year's payment," said Tamboer.

She says sellers are also doing more to stay competitive.

"Many other sellers are doing repairs, doing the things to bring those not so perfect properties up to par so that they can compete with all of the other listing on the market today," she said.

The median home price in Phoenix last month was $440,000, the same as in July. It's also only $5,000 more than in 2023.

Real estate experts say the price of smaller family homes is actually decreasing here, while luxury homes in the Valley are increasing or holding steady, reflecting the stock market.