When mortgage rates are high, most buyers immediately focus on the interest rate - and understandably so. Even a relatively small change in rates can have a noticeable impact on a monthly mortgage payment. But the interest rate isn't the only number buyers should be paying attention to.

In today's Greater Phoenix market, seller concessions can be one of the most valuable negotiating tools available to buyers. And when combined with the right financing strategy, they can potentially help buyers reduce upfront costs, lower their mortgage rate, preserve cash, or even achieve a lower monthly payment.

What Are Seller Concessions and What Can They Pay For?

Seller concessions are funds negotiated in the purchase contract that the seller agrees to contribute toward certain buyer expenses at closing.

Depending on the loan program and lender requirements, seller concessions may be used toward:

• Closing costs and lender fees
• Prepaid taxes and insurance
• Discount points to lower the mortgage rate
• Temporary or permanent rate buydowns
• Certain other allowable closing expenses

The maximum contribution depends on the loan program, down payment and other factors, so buyers should always confirm allowable concessions with their lender.

Seller Concessions Are Common in Greater Phoenix

Seller concessions have become a regular part of Greater Phoenix real estate transactions. Recent 2026 market data has shown roughly half or more of Phoenix-area sales closing with some type of seller concession, with one recent Greater Phoenix report showing approximately 54% of sales receiving concessions and a median contribution of $10,000.

However, those numbers vary significantly by price point, location and property. A buyer looking at a $350,000 home in one part of the Valley may have very different negotiating power than someone purchasing a $700,000 home in a highly competitive neighborhood.

Days on market, property condition, previous price reductions and competing offers also matter. That's why Valley-wide statistics are helpful, but the best negotiation strategy should be based on the specific home you're considering.

A $10,000 Concession vs. a $10,000 Price Reduction

When mortgage rates are high, negotiating the lowest possible purchase price isn't always the strategy that provides the greatest immediate benefit. For example, a $10,000 price reduction on a $450,000 home reduces the amount financed, but the monthly payment difference may be relatively modest when spread over a 30-year mortgage.

A $10,000 seller concession, however, could potentially be used toward closing costs or discount points to buy down the mortgage rate. For a buyer focused on monthly payment or cash needed at closing, that could be more valuable in the long run.

Should You Put More Money Down or Buy Down the Rate?

Buyers should also consider how they're using their own cash. Putting the largest possible amount down isn't automatically the best strategy.

For example, a buyer planning a 20% down payment could ask their lender to compare that option with putting less down and using some of the available cash - or negotiated seller concessions - to purchase discount points and lower the mortgage rate.

One discount point generally costs 1% of the loan amount, although the amount it lowers your rate varies based on current market conditions and lender pricing.

Ask your lender to compare scenarios such as:

20% down with no points
vs.
15% down with points
vs.
a smaller down payment with a seller-paid rate buydown

Compare the monthly payment, mortgage insurance, cash required at closing and how much money you'll have left in reserves. There isn't one strategy that's right for every buyer.

Temporary vs. Permanent Rate Buydowns

Seller concessions may also help fund a permanent rate buydown, where discount points lower the interest rate for the life of the loan.

Another option is a temporary buydown, such as a 2-1 buydown, which reduces the effective payment rate during the first years of the mortgage. Temporary buydowns can provide short-term payment relief, but buyers should still be comfortable making the payment at the full note rate. Refinancing later into a permanent lower rate is never guaranteed.

Don't Just Negotiate Price, Negotiate the Entire Deal

Today's buyers should look beyond the purchase price. Depending on the home and your financial priorities, negotiating seller-paid closing costs, a mortgage rate buydown, a lower purchase price, or a combination of these, could produce a better overall outcome.

Instead of simply asking, “How much can I get off the price?”, consider asking, “How can we structure this purchase to give me the best combination of monthly payment, cash-to-close and long-term cost?”

The Bottom Line

The best deal is often not the lowest price, but the way the purchase is structured. If higher mortgage rates have you sitting on the sidelines, it may be worth taking another look at the numbers. Depending on the property, price point and location, there may be opportunities to negotiate seller concessions or rate buydowns that make purchasing more affordable.

Thinking About Buying a Home in Arizona? I'd be happy to help you identify where buyers have negotiating leverage in today's Arizona market and develop a strategy that fits your goals. CONTACT ME or give me a call at 480-529-5893.

Higher mortgage rates and affordability are a challenge for the housing market. But if you’re planning to purchase your next home with cash, today’s higher rates can actually create an advantage.

While financed buyers are focused on interest rates and monthly payments, cash buyers have the ability to look at the market differently.

Higher Rates Can Mean Less Competition

One of the biggest advantages for cash buyers in a higher-rate market is reduced competition. When mortgage rates rise, monthly payments become more expensive. Some buyers lower their budgets, while others decide to postpone their purchase altogether.

For a cash buyer, however, mortgage rates don’t directly affect the cost of purchasing a home. That can mean fewer buyers competing against you, less pressure to make an immediate decision, and more opportunity to negotiate.

Sellers Are More Accustomed to Offering Concessions

Higher rates have also changed the way many financed buyers structure their offers. To make monthly payments more affordable, buyers may ask sellers to contribute toward closing costs or provide concessions that can be used to buy down their mortgage rate. For sellers, those concessions can represent thousands of dollars coming out of their proceeds.

As a cash buyer, you don't need a mortgage rate buydown. Instead, you can focus your negotiations on the things that provide more value to you, such as a lower purchase price, repairs, closing costs, or other favorable terms. In other words, if a seller is already prepared to negotiate financially to get their home sold, a cash buyer may have more flexibility in deciding how to structure that negotiation.

Your Cash Offer Has Another Advantage: Certainty

Price isn't the only thing sellers consider when evaluating an offer. A cash purchase typically eliminates several variables associated with financing. There's no financing contingency, no lender underwriting process, and potentially no appraisal requirement. That can make a cash offer especially attractive to a seller who values certainty or wants a smoother or faster closing. And in a market where sellers may have fewer competing offers to choose from, that certainty can give you additional negotiating leverage.

What Happens If Mortgage Rates Come Down?

Many buyers are waiting for mortgage rates to fall before purchasing a home. But there’s another side to that strategy. If rates decline enough to improve affordability, a lot of buyers currently sitting on the sidelines may return to the market. More buyers can mean more competition for desirable homes, and potentially less negotiating power.

Cash buyers don't have to wait for rates to improve their monthly mortgage payment. That creates an interesting question: Could you have more buying power while other buyers are waiting?

For some cash buyers, the opportunity in today's market isn't about trying to perfectly time home prices or interest rates. It's about taking advantage of a market where there is less competition, sellers are more open to negotiation, and the strength of a cash offer can carry additional weight.

Considering a Cash Purchase in Arizona?

If buying a home in Arizona is on your radar, this may be a good time to explore your options, even if you've been hearing that higher mortgage rates make it a bad time to buy. The experience can look very different when you aren't dependent on financing.

Thinking about making a move? Contact me and let's talk about how you can use your cash-buyer advantage in today's Arizona real estate market.

If you're considering buying or selling a condo in Arizona, new Fannie Mae condo financing rules in 2026 could affect how easily a buyer can obtain a mortgage—and potentially how marketable a condo is for sellers.

Fannie Mae has updated its condominium project review, reserve funding and insurance requirements. One of the biggest changes is the retirement of the Limited Review process for applicable condo loans beginning August 3, 2026. Additional reserve requirements take effect in 2027.

These are Fannie Mae lending requirements, not Arizona laws, and they don't affect every condo in exactly the same way. However, because conventional financing is commonly used to purchase condos, Arizona buyers and sellers should understand how the changes may affect them.

What Are the New Fannie Mae Condo Rules?

The biggest change is the retirement of Limited Review for applicable condo loan applications dated August 3, 2026, or later. More condominium projects may now require a Full Review, which means lenders may need additional information about the HOA and the overall property, including:

• HOA finances and reserves
• Special assessments
• Insurance coverage and deductibles
• Major repairs and deferred maintenance
• Recent inspections
• HOA delinquencies
• Pending litigation

There are exceptions. Certain smaller projects, including some with 10 or fewer units, may qualify for a project-review waiver.

Another important change takes effect January 4, 2027, when the minimum replacement-reserve funding requirement for applicable Full Review projects increases from 10% to 15%, unless the project qualifies to use an acceptable reserve study.

A new $50,000 per-unit maximum deductible for required property insurance also applies to applicable loans beginning July 1, 2026.

What This Means for Condo Sellers

Your HOA can affect your ability to sell. Even if your condo is beautifully updated and priced correctly, a buyer could have difficulty getting conventional financing if the condominium HOA doesn't meet Fannie Mae requirements.

Before listing, ask your HOA for:

• Current budget and financial statements
• Reserve information or reserve study
• Master insurance policy and deductibles
• Current or upcoming special assessments
• Recent inspection reports
• Information about major repairs or deferred maintenance
• HOA delinquency information
• Pending litigation information

Getting these documents early can help uncover potential financing issues before you accept an offer.

Questions Sellers Should Ask Their Agent

"Is this condo project currently financeable for conventional buyers?"

Your agent can't make the final lending determination, but they can help identify potential red flags.

"Have buyers had financing problems in this community?"

Recent transactions may provide useful information about whether buyers have experienced financing issues.

"Are there any HOA issues that could affect a buyer's financing?"

Your agent should help you identify questions that need to be addressed with the HOA and lender.

"Should we have the project reviewed before listing?"

If there are potential concerns, discovering them before marketing your property can prevent surprises later.

What This Means for Condo Buyers

Getting pre-approved doesn't necessarily mean you're approved for every condo. With a condo purchase, the lender may need to evaluate both you and the condominium project. A condo may be difficult to finance if the HOA has inadequate reserves, insurance problems, significant deferred maintenance, certain special assessments or other issues that don't meet applicable Fannie Mae requirements.

Questions Buyers Should Ask Their Agent

"Has this community been successfully financed recently?"

Recent conventional sales can provide helpful context, although they don't guarantee your loan will qualify.

"Are you aware of any financing issues with this HOA?"

Your agent may know of past problems that deserve further investigation.

"Can we get the HOA's financial and insurance documents?"

Don't wait until the last minute. HOA documents can take time to obtain.

"Are there any current or planned special assessments?"

Understand both approved assessments and major upcoming projects.

"Are there any major repairs or deferred maintenance?"

Pay attention to roofs, balconies, exterior structures, plumbing, elevators and other common elements.

"Has my lender reviewed this specific condominium project?"

This is one of the most important questions to ask.

 What If a Condo Doesn't Qualify for Fannie Mae Financing?

A condo that doesn't meet Fannie Mae requirements isn't necessarily unsellable. Depending on the circumstances, a buyer may be able to use:

• Cash
• Portfolio financing
• Other alternative loan programs
• FHA financing, if the project meets applicable FHA requirements

However, fewer financing options can mean a smaller pool of potential buyers, which could affect the property's marketing time and negotiating power.

What Arizona Condo Buyers and Sellers Should Remember

The new Fannie Mae condo financing rules for 2026 don't mean Arizona condos are becoming impossible to finance. They do mean that the HOA matters more than ever.

For sellers:

Your HOA's finances, reserves, insurance and physical condition can affect your property's marketability.

For buyers:

Your personal mortgage pre-approval isn't enough. Your lender also needs to determine whether the specific condominium project meets applicable requirements.

For both:

Ask questions early - before you're under contract. If you're considering buying or selling a condo in Phoenix, Scottsdale, Tempe, Chandler, Mesa, Fountain Hills or elsewhere in Arizona, an experienced real estate agent can help you identify potential issues and coordinate with your lender and HOA.

Thinking about buying or selling a condo in Phoenix or surrounding communities? Let’s talk about it! Contact me at 480-529-5893 or amy@brooksrealestategroup.com anytime to discuss your specific situation.

This article is for general educational purposes and is not legal, tax or mortgage advice. Fannie Mae requirements can change, and individual lenders may have additional underwriting requirements. Always confirm current requirements with your mortgage professional.

For millions of homeowners, the decision to move has become less about whether they want a different home and more about whether they can afford to give up the mortgage they already have.

A homeowner may have bought a home several years ago with a mortgage rate in the 2%, 3% or 4% range. Today, replacing that mortgage could mean taking on a significantly higher rate, and potentially hundreds of dollars more in monthly payments. That has created what housing economists call the “lock-in effect.”

Homeowners aren't necessarily staying because their current home still works for them. They are staying because moving can mean giving up a mortgage payment they can comfortably afford and replacing it with one that may not fit their budget.

A newly proposed piece of legislation, H.R. 10028, the Making Ownership Viable for Everyone Act- or MOVE Act - could offer a new way out.

What Is the MOVE Act?

Introduced in the U.S. House of Representatives on August 3, 2026, the MOVE Act would require Fannie Mae and Freddie Mac to begin purchasing and securitizing qualifying portable mortgages within 180 days of enactment.

Under the proposal, an eligible homeowner could potentially sell their current home and transfer the interest rate, loan terms and remaining mortgage balance to a new property, provided the move occurs within 90 days.

In simple terms: You could potentially take your mortgage with you when you move.

That's significant because one of the biggest obstacles to moving today isn't necessarily the price of the next home. It's the mortgage attached to the home a homeowner already owns. The Bipartisan Policy Center has identified higher mortgage rates as a major contributor to the current lock-in effect, noting that a substantial share of outstanding mortgages carry rates below 3%.

The Homeowners Caught in the Middle

Consider a family that purchased a home in 2020 or 2021. They may have a $350,000 mortgage at 3%. Their monthly principal and interest payment might be around $1,475. But now their family has changed.

Maybe they have another child. Maybe they work from home. Maybe their children are getting older and need more space. Maybe the neighborhood no longer fits their lifestyle. Maybe they need a one-story home, a larger yard, a better school location or a home closer to work. They have outgrown the house, but not the payment.

That creates a difficult choice - Move into a home that better fits their life and potentially take on a much higher mortgage payment, or stay where they are simply because the existing payment is affordable. For some homeowners, the second option wins. This is the heart of the lock-in effect.

The Problem With “Just Sell and Buy Something Else”

On paper, moving may look simple: 

Sell your current home → receive your equity → purchase another home. 

In reality, homeowners have to consider much more than the difference between their current home's value and the next home's price.

They have to consider:

• Their existing mortgage rate
• Their new mortgage rate
• The size of the new loan
• Closing costs
• Moving expenses
• Property taxes and insurance
• The equity they will use for the next purchase
• And potentially the tax consequences of selling

That last issue - capital gains - is often misunderstood.

What About Capital Gains When You Sell?

Selling a primary residence does not automatically mean you will owe capital-gains tax on the entire increase in value. Under current federal tax rules, homeowners who meet the applicable requirements can generally exclude up to $250,000 of gain for an individual homeowner or $500,000 for married couples filing jointly. Generally, the homeowner must have owned and lived in the property as their principal residence for at least two of the five years preceding the sale, among other requirements.

For example, suppose a married couple purchased their home for $400,000 and later sells it for $700,000. At first glance, that appears to be a $300,000 gain. But the calculation isn't simply sale price minus purchase price. Certain selling expenses and qualifying improvements can affect the home's tax basis and the amount of gain.

If the couple qualifies for the $500,000 primary-residence exclusion, that $300,000 gain could potentially be excluded from federal taxable income.

That means capital gains may be much less of a barrier to moving for many longtime homeowners than they initially assume.

However, homeowners with significant appreciation, investment or rental use, previous home-sale exclusions, or other circumstances may have a taxable gain. Tax rules can also vary depending on the homeowner's individual situation, so anyone facing a substantial gain should consult a qualified tax professional.

Where the MOVE Act Could Make a Difference

Here's where the proposed MOVE Act gets particularly interesting.

The bill doesn't eliminate capital-gains taxes or change the existing home-sale exclusion. Instead, it potentially addresses another major financial barrier: the mortgage itself.

Imagine that same family has:

Current home: $550,000
Mortgage balance: $325,000
Existing mortgage rate: 3%
New home: $700,000

Without a portable mortgage, selling could mean paying off the 3% mortgage and financing the next home at today's higher rate. Under a portable mortgage structure, the family could potentially carry the existing mortgage terms and balance to the new property, subject to the program's eventual rules and lender requirements.

They would still need to finance the difference between the existing mortgage balance and the new home's purchase price, but the entire mortgage wouldn't necessarily have to be replaced at today's rate. That could dramatically change the math for some homeowners.

The Bigger Question: What Is Your Home Costing You to Stay?

This is the conversation homeowners should be having. A low mortgage payment is valuable, but it isn't the only consideration. A homeowner might be paying a very affordable mortgage while living in a home that no longer meets their needs.

Maybe the house has:

• Too few bedrooms
• No home office
• An impractical floor plan
• A yard that has become too much work
• A location that no longer makes sense
• A long commute
• Accessibility concerns
• Or simply not enough space for the way the family lives today

The question isn't simply, “Can I afford to move?” It may be, “What is the financial and lifestyle cost of staying?” That's an important distinction.

A Low Rate Isn't the Same as Low Cost

A homeowner with a 3% mortgage may feel like moving would be financially irresponsible. And in some cases, it may be. But homeowners shouldn't evaluate the decision based solely on their interest rate.

They should look at the entire financial picture. For example:

Stay in your current home:

• Lower mortgage payment
• No selling costs
• No moving expenses
• Keep existing interest rate
• But remain in a home that no longer meets your needs

Move into the home you need for your lifestyle:

• Potentially higher monthly payment
• Selling and purchasing costs
• Possible capital-gains considerations
• But a home that better fits your family, lifestyle and long-term plans

There isn't one right answer. The right answer depends on the numbers and on what the homeowner needs from their home.

Could Portable Mortgages Unlock More Inventory?

That's one of the most interesting possibilities behind the MOVE Act. If homeowners knew they could take a favorable mortgage with them, some may be more willing to sell. That could put more existing homes on the market. More listings could give buyers more choices and potentially help improve the overall flow of the housing market.

The goal isn't necessarily to make mortgages cheaper overnight. It's to make moving less financially punitive for homeowners who already have favorable financing. That's a very different approach to the affordability problem.

But There Are Still Questions

Because H.R. 10028 is only a proposed bill, homeowners shouldn't make a real-estate decision today assuming portable mortgages will become available.

The bill has been introduced and referred to the House Committee on Financial Services; it has not become law. Even if legislation passes, the details will matter.

Questions could include:

• Which existing mortgages would qualify?
• Would the mortgage have to be originated after a certain date?
• How would the new property be underwritten?
• What happens if the new home costs significantly more?
• Would the borrower have to qualify again?
• How would the additional financing work?
• Would lenders charge fees?
• What happens if the homeowner's financial circumstances have changed?

Those details could ultimately determine how useful portable mortgages become.

Don't Let a 3% Mortgage Keep You in the Wrong House Forever

The lock-in effect is real. But a mortgage is a financial tool—not the reason you bought a home in the first place. Your home is supposed to support your life.

For some homeowners, keeping a low-rate mortgage and staying put may be exactly the right decision. For others, the financial benefit of that mortgage may be keeping them in a home they've genuinely outgrown.

The proposed MOVE Act raises an interesting possibility: What if homeowners didn't have to choose between keeping an affordable mortgage and moving into a home that better fits their lives?

Portable mortgages could eventually give some homeowners that choice. Until then, the best approach is to look at the complete financial picture—not simply today's mortgage rate. Your current payment matters. Your equity matters. Potential capital gains matter. The cost of the next home matters. But so does the question that often gets overlooked: Is the home you're paying for still the home you actually want to live in?

If you're feeling stuck between a mortgage payment you love and a home you've outgrown, it may be worth running the numbers before deciding that staying is your only financially responsible option.

This article is for educational purposes only and is not tax, legal or financial advice. The MOVE Act is proposed legislation and is not currently law. Homeowners should consult their tax and financial professionals regarding their individual circumstances.

For many people, the idea of owning a home in Arizona doesn't begin with an immediate move. It begins with a vision.

Maybe you're dreaming of escaping cold winters, spending more time outdoors, living closer to family, or creating a place where future vacations eventually become everyday life. Others are beginning to think about retirement and wondering what the next chapter could look like.

Whatever your timeline, one thing is true: you don't have to be ready to move to start planning.

Why Arizona Continues to Attract Retirees and Second-Home Buyers

Arizona has long been one of the country's most popular destinations for retirees and seasonal homeowners - and it's easy to see why.

With abundant sunshine, mild winters, world-class golf, hiking, beautiful desert scenery, and a wide variety of communities, Arizona offers something for almost every lifestyle. Whether you're looking for a lock-and-leave condo, an active adult community, a golf course home, or a neighborhood where the grandkids can visit comfortably, there are plenty of options to explore.

Many buyers begin researching years before they're ready to purchase. That extra planning time often leads to better decisions because it allows you to become familiar with different communities, understand the costs of ownership, and recognize opportunities when the right home becomes available.

Retirement Starts with a Plan, Not a Timeline

You don't need a retirement date on the calendar to start planning. In fact, many people begin exploring Arizona years before they make the move so they can better understand the communities, housing options, and lifestyle that best fits their goals.

Whether you're considering a second home now or a full-time move later, asking the right questions early can help you make confident decisions when the time is right.

Some of the questions I help future Arizona homeowners answer include:

• Which communities best fit your lifestyle and budget?
• Is an active adult community or a traditional neighborhood the better fit?
• Would a lock-and-leave home make seasonal living easier?
• What should you expect for property taxes, HOA fees, and ongoing ownership costs?
• Which areas offer convenient access to healthcare, golf, hiking, airports, shopping, or family?
• How should the sale of your current home be coordinated with your move to Arizona?

It's also natural to wonder whether today's market is the "right" time to buy. With changing interest rates, shifting home prices, and constant headlines, it's easy to feel uncertain.

The truth is, most successful retirees and second-home buyers aren't trying to perfectly time the market (spoiler alert: it’s nearly impossible to do!), they're focused on finding the home and lifestyle that's right for them. Having a clear understanding of your budget, priorities, and long-term goals allows you to move forward with confidence, regardless of what the latest headlines say.

The market will always change, but a thoughtful plan gives you the flexibility to adapt and make decisions based on your goals, not market speculation.

You Don't Have to Have Everything Figured Out

Whether you're thinking about purchasing a second home, planning for retirement in a few years, or simply wondering what's possible, you don't need to have all the answers before reaching out.

Sometimes the most valuable step is simply learning about the options available so you can make informed decisions when the time is right.

If Arizona is part of your future, I'd be happy to help you explore communities, discuss what you're looking for, answer your questions, and provide homes that fit your vision and budget without any pressure or obligation.

The best retirement and second-home plans don't begin with perfect timing. They begin with a conversation.

If you're ready to start exploring or just have a few questions - I'd love to help! Reach out to me directly anytime at 480-529-5893, or amy@brooksrealestategroup.com.

If you've been following the headlines, you've probably heard a mix of conflicting messages about the housing market. Some suggest buyers should wait, while others warn prices will continue climbing.

The reality is more nuanced.

Arizona's housing market has become more balanced, creating opportunities for buyers who understand how to negotiate—and for sellers who price their homes strategically.

The Numbers Tell an Interesting Story

Here's what happened across the Valley in July 2026:

• 24,131 active listings, down 3% from a year ago
• 7,742 homes under contract, up 3%
• 6,587 closed sales, up 6.2%
• Median sales price of $451,000, up 7.1%
• Median days on market: 48 days, five days longer than last year

At first glance, these statistics may seem contradictory. Homes are taking slightly longer to sell, yet prices continue to rise and more buyers are entering the market.

In reality, that's exactly what a healthier market looks like.

Instead of the frantic pace we experienced a few years ago, today's market gives buyers more time to evaluate their options while still supporting steady home values.

Buyers Have More Negotiating Power Than Many People Realize

One of the biggest misconceptions today is that buyers have little leverage.

In many Arizona neighborhoods, the opposite is true.

Depending on the property, buyers are successfully negotiating:

• Price reductions on homes that have been on the market longer
• Seller-paid closing costs
• Temporary or permanent mortgage rate buy-downs
• Repair requests and inspection credits

Those concessions can significantly reduce a buyer's upfront costs and monthly payment. Two homes with similar list prices can result in very different long-term costs simply because one purchase was negotiated more effectively.

Risk Isn't About Timing the Market

Many prospective buyers worry about purchasing at the "wrong" time.

But in my experience, the biggest risk isn't market timing—it's making a purchase without a strategy.

Today's buyers are reducing risk by:

• Focusing on neighborhoods with strong long-term fundamentals
• Negotiating seller concessions whenever possible
• Using mortgage rate buy-downs to lower monthly payments
• Avoiding emotional bidding situations
• Purchasing homes that align with their long-term financial goals

Successful buyers aren't trying to predict the next market cycle. They're making informed decisions based on today's opportunities.

What This Means for Sellers

While buyers have more room to negotiate, this isn't a weak market for sellers.

Inventory remains relatively tight compared to historical norms, homes continue to appreciate, and contract activity is increasing. Sellers who price competitively and present their homes well are still attracting qualified buyers.

Today's market rewards preparation more than urgency.

The Bottom Line

Arizona's housing market isn't as simple as "buyer's market" or "seller's market."

It's a market where preparation, pricing, and negotiation matter more than ever.

For buyers, that means there are real opportunities to reduce costs through thoughtful negotiation.

For sellers, it means realistic pricing and strong presentation continue to produce successful outcomes.

Whether you're buying, selling, or simply watching the market, understanding what's happening beyond the headlines leads to better decisions.

Reposted from NAR Magazine

Home purchasers may find they have their best negotiating power in more than five years. More homes are finally hitting the market—and buyers are taking notice. Existing-home sales rose 2% in July from the previous month and inched above last year’s pace, as home buyers respond to the largest inventory of homes for sale in years, the National Association of REALTORS® reported Thursday. Existing-home sales reflect completed transactions for single-family homes, townhomes, condos and co-ops.

“Home buyers are in the best position in more than five years to find the right home and negotiate for a better price,” says Lawrence Yun, NAR’s chief economist. “Current inventory is at its highest since May 2020, during the COVID lockdown.” The number of For Sale signs is up nationally by about 16% over last year’s levels.

Home prices are moderating, too. The median existing-home price was $422,400 in July, representing just a 0.2% increase from a year ago, NAR reports. Month-to-month, home price increases are occurring at a noticeably slower pace.

That “ever-so-slight improvement in housing affordability is inching up home sales,” Yun says. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

Some Markets See Price Adjustments, But Sellers Still Faring Well

More listings and stiffer seller competition may be starting to rein in home price growth in many markets. The essentially flat annual home price growth suggests that about half of the country is experiencing price reductions, Yun says.

But home sellers shouldn’t fret: Most are still faring well financially, and no major market declines appear on the horizon, Yun says. In July, foreclosures and short sales made up just 2% of transactions, remaining near historic lows.

Further, “the market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year,” Yun says. Over the last five years, the average homeowner’s wealth has increased by $140,900, NAR’s research shows.

For buyers, however, the mix of rising inventory and slower price growth may offer more negotiating power than they’ve had in years. Home builders also are making deeper concessions: In August, 37% of builders reported lowering their prices—the highest share since 2022—with average price cuts of about 5%, according to the National Association of Home Builders. Two-thirds of builders said they’re offering incentives—such as mortgage rate buydowns or closing cost assistance—which marks the highest use of sales incentives in at least five years.

Buyers are responding to the discounts in some markets. Condominium sales, for instance, increased in July in the South—a region where prices have fallen over the past year, Yun notes.

Also, mortgage applications—a gauge of future homebuying activity—remain well-above last year’s levels. Purchase applications were up 23% from the same week a year ago, the Mortgage Bankers Association reported Wednesday. That suggests more prospective buyers are preparing to enter the market.

But Don’t Discount the Competition

While the market may be opening up with more choices, buyers still can face plenty of competition. In July, 21% of homes sold above the asking price, and the average listing drew 2.1 offers, according to the latest REALTOR® Confidence Index, which reflects responses from 1,500 real estate professionals about their most recent transactions. Fifty-eight percent of real estate pros also reported that properties sold in less than one month.

Competition from all-cash buyers also remains strong. Cash transactions comprised 31% of existing-home sales in July, remaining at historical highs, NAR reports. This growing segment of buyers bypassed the elevated mortgage rates that have been blamed for sidelining many would-be buyers during the spring and summer months. First-time buyers, for example, accounted for 29% of July’s existing-home sales, well below their typical 40% share.

Regional Breakdown 

Here’s a closer look at how existing-home sales fared in July across the country, according to NAR’s latest report: 

• Northeast: Sales rose 8.7% in July, reaching an annual rate of 500,000. Existing-home sales are up 2% annually. Median price: $509,300, up 0.8% from a year ago.
• Midwest: Sales fell 1.1% in July, the only region to post a monthly decline last month. Yet, sales were still up 1.1% annually at an annual rate of 940,000. Median price: $333,800, up 3.9% from a year ago.
• South: Sales rose 2.2% in July compared to June to an annual rate of 1.85 million. Sales are also up by 2.2% year-over-year. Median price: $367,400, down 0.6% from a year earlier.
• West: Sales increased 1.4% in July to an annual rate of 720,000. But sales were down 4% compared to a year ago. Median price: $620,700, down 1.4% from July 2024.

There are a lot of headlines out there about the state of the real estate market. It’s important to know what’s real, and what is simply just click bait. Here are just a few talking points to be aware of.

“A housing crash is coming”

While prices may fluctuate with interest rates, a significant crash like the one in 2008 isn’t expected. Today’s market is built on much stronger lending standards and real demand.

“A recession = housing crisis”

Historically, home values have remained steady — or even increased — during most recessions.

“You need perfect credit and 20% down”

Many buyers get into a home with far less than 20% down, and there are loan options for a wide range of credit scores. You don’t need to be perfect — just prepared.

“Mortgage insurance is something to fear”

It’s not the enemy. It’s a tool that helps buyers purchase sooner and start building equity, rather than waiting (and renting) for years.

Reposted from Keeping Current Matters

Buying your first home in today’s market can feel tough. Between high home prices and mortgage rates, affordability is still a big challenge. And some buyers are making one simple trade-off that’s getting them in the door faster: square footage.

According to the National Association of Home Builders (NAHB), 35% of buyers are willing to purchase something smaller to make homeownership happen. And one place you can usually find a smaller footprint (and sometimes better affordability) is in townhomes.

Why Townhomes Are Gaining Popularity

Townhomes typically cost less than single-family homes due to their more limited size. And that’s a big plus for today’s budget-conscious buyer. As Realtor.com says, "In today’s market, affordability remains a key priority for homebuyers, making townhomes an attractive option because they are often priced more reasonably than single-family homes. It makes them especially appealing to first-time homebuyers on a tighter budget..."

So, if you’re trying to buy but feeling stuck because of rising prices, shifting your focus to townhomes could be one way to get into homeownership without maxing out your budget.

Builders Are Responding to the Demand

Builders have seen buyers’ appetite shift to smaller homes, and they’re adjusting to meet the demand. As Joel Berner, Senior Economist at Realtor.com, explains "Builders are making a concerted effort to provide smaller, more affordable inventory to the market in a way that the existing-home market cannot. Townhomes are a significant portion of that effort."

And the numbers back it up. According to data from Realtor.com, townhomes now make up a bigger share of new construction listings than they did just a couple of years ago.

That means, if you’re interested in this type of house, you have more choices than you would have had over the last few years. And more options that are potentially more affordable are definitely a good thing. It should make your search for your first home a bit easier.

Is a Townhome Right For You

If you’ve been focused only on more traditional homes with their own yards, an agent can help you explore whether a townhome could work for you. Who knows, you may find out you love the lifestyle. A lot of people do. As an article from the National Association of Realtors (NAR) explains "Townhomes tend to cost less than single-family detached homes and can be appealing to young professionals who may desire medium-density, walkable neighborhoods.”

That’s because they’re lower maintenance, they can provide a sense of community with other residents, and they have their own unique amenities. Not to mention, they give you the chance to start building wealth through homeownership without the upkeep that comes with having your own detached, single-family home. And that can be great for first-time buyers who are a bit worried about the maintenance anyway.

But they also come with some other considerations, like dealing with noise through shared walls. If you’re a renter right now, maybe you’re used to that already. But these are the types of things you’ll want to think about. And that’s where an agent’s expertise comes in. They’ll help you weigh the pros and cons, so you understand how a townhome fits into your lifestyle and long-term goals before making your decision.

Bottom Line

If you're struggling to find a home within your budget, it may be time to expand your search and consider options you haven’t before, like townhomes. Sometimes, compromising a little bit on space is worth it to get your foot in the door.

In a buyer’s market, just putting a sign in the yard isn’t enough. Here’s some common mistakes sellers are making in today’s challenging market...

1. Sellers expecting “unicorn” pricing

Some sellers are still hoping for the post-COVID “unicorn” prices. But buyers today? They’re more price-conscious, especially with higher interest rates, and overpricing can lead to longer days on the market and, ultimately, a lower final sale price.

2. Sellers are skipping the prep work

Let’s be real—first impressions matter. Buyers are looking for move-in ready, and if a home doesn't look well-maintained or clean, buyers move on fast. The little things (like fresh paint and decluttering) go a long way.

3. Poor marketing strategy

Simply putting a home on the MLS isn’t enough anymore. A strong marketing strategy—think high-quality photos and video, strategic social media exposure, and strong agent representation make all the difference.

Check out my AZ Home Seller's Guide for more home selling tips, or CONTACT ME today for a free consultation.