Quick take: The market has shifted. Arizona sellers can still win, but the pricing, preparation, and timing strategy that worked in 2021 is not the strategy sellers should rely on in 2026.

A recent national housing report points to a large imbalance between active sellers and active buyers. Jason Penrose breaks down what that means for homeowners who are deciding whether to sell now, prepare for a future sale, or stay put.

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Watch Jason's market breakdown

See Jason's explanation of what the seller-buyer gap means for Arizona homeowners.

What the seller-buyer gap means

The report Jason discusses points to roughly 1.99 million active sellers compared with about 1.36 million active buyers, creating a gap of approximately 629,808 more sellers than buyers.

That matters because real estate prices are shaped by supply and demand. When buyers have more homes to choose from, they become more selective. They compare condition, price, location, concessions, days on market, and monthly payment more carefully.

629,808

more sellers than buyers nationally

1.99M

active sellers in the report

1.36M

active buyers in the report

What changes when buyers have more choices?

• More inventory means sellers have more competition.
• Longer days on market can make buyers wonder what is wrong with a listing.
• Price reductions become more common when homes launch too high.
• Buyer cancellations and repair negotiations become more important to manage.

Why Arizona homeowners should pay attention

Arizona is not just watching this trend from a distance. In many Phoenix-area price points, sellers are already competing against more listings than they were during the most aggressive parts of the market.

That does not mean every home is losing value or that every seller should rush to list. It does mean a homeowner in Phoenix, Scottsdale, Mesa, Chandler, Gilbert, or the surrounding Valley should make decisions based on current data, not old market assumptions.

If you are thinking about selling in the next 12 to 24 months, the question is not simply whether the market is good or bad. The better question is whether waiting improves your position, or whether it increases your exposure to more competition, more price pressure, and more buyer leverage.

The two types of sellers Jason is talking to

1. Sellers who do not want to risk being stuck

Some homeowners know they may want to move in the next year or two. They may be downsizing, relocating, changing school districts, moving closer to family, or trying to get into a home that fits the next chapter of life.

2. Homeowners who are truly staying long term

Other homeowners are comfortable staying put. If the market softens, they are not planning to sell. If values fluctuate, it does not change their plan.

Pricing matters more than ever

In a market with more sellers than buyers, pricing strategy can make the difference between a clean sale and a stale listing.

A strong pricing strategy should account for recent comparable sales, current competition, buyer demand, condition, repairs, monthly payment pressure, and how quickly similar homes are going under contract.

Avoid the stale-listing trap

The goal is not to underprice your home. The goal is to avoid launching too high, losing early momentum, and becoming the listing buyers use as leverage against better-priced homes.

Preparation is no longer optional

When buyers have more choices, presentation matters. Small issues that buyers overlooked in a frenzy market can become negotiation points in a more balanced or buyer-leaning market.

Before listing, sellers should review curb appeal, landscaping, deferred maintenance, paint, flooring, odors, clutter, staging, showing access, and professional photography. If you want a practical related read, see why driveway and exterior presentation matter when selling your home.

FSBO gets riskier in this kind of market

Some homeowners look at a softer market and consider selling without an agent to save commission. The risk is that commission savings do not help if pricing, marketing, negotiation, inspection issues, contract terms, or buyer confidence cost more than the savings.

This is especially important when buyers have more leverage. Sellers need a plan for exposure, pricing, showing feedback, repair requests, appraisal issues, concessions, and closing risk.

What Arizona sellers should do now

1. Get a realistic home value review. Start with current comps and active competition, not outdated peak-market expectations.
2. Calculate likely net proceeds. Include mortgage payoff, closing costs, repairs, concessions, and moving costs.
3. Review your local competition. A seller in Phoenix may face a different picture than a seller in Scottsdale, Gilbert, or Mesa.
4. Fix obvious presentation issues early. Do not wait until the listing is live to address items buyers will notice immediately.
5. Decide whether you are a short-term seller or a long-term holder. Your timeline should drive the strategy.

Thinking about selling in Arizona?

The Penrose Team can help you compare your home value, net proceeds, neighborhood competition, and timing options before you make a decision.

Get Your Arizona Home Value Estimate

Or call/text The Penrose Team at (602) 738-9943

Helpful next steps: review the selling process, browse seller articles, or learn more about The Penrose Team.

Frequently asked questions

Is Arizona in a buyer's market in 2026?

Many Arizona sellers are facing more buyer leverage than they did during the peak market. Inventory has increased, buyers are more selective, and price reductions are more common in some segments.

Should I sell my Phoenix home now or wait?

It depends on your timeline, equity, neighborhood, and next move. If you may sell in the next one to two years, it is smart to review your home value, likely net proceeds, current competition, and pricing strategy now.

Are Phoenix home prices crashing?

The current market is more selective, but that is not the same as saying every Phoenix home is crashing. Well-priced, well-prepared homes can still sell. Overpriced or underprepared homes are more likely to sit.

What is the biggest mistake sellers are making?

The biggest mistake is pricing from memory instead of pricing from current data. The market has changed, and sellers who launch too high can lose early momentum quickly.