PHX Report - 3rd Quarter 2026

I've been wanting to do something like this for a while, so I'm excited to introduce The PHX Report! Each quarter, I'll be digging into the numbers behind the Phoenix housing market to give you a better picture of what's actually happening out there.

We'll break things down into three categories: single-family homes under $1 million, luxury homes over $1 million, and condos, townhomes, and patio homes. We'll look at prices, sales activity, inventory, and how long homes are taking to sell.

After more than 25 years in real estate, I've learned that the market is rarely as good or as bad as the headlines make it sound. There's always more to the story, and that's exactly what I hope to share with you here.

So, here's our first look at the numbers, covering the third quarter of 2026!

The Phoenix housing market continued to show signs of softening during the third quarter of 2026, with home prices edging lower, sales activity slowing, and homes taking a little longer to sell.

The median sold price dropped to $470,000, down 1.05% from the previous quarter, while the average sold price declined slightly to $511,263. Price per square foot also fell 1.19%, suggesting that buyers are continuing to gain some negotiating leverage.

Perhaps the biggest change was in sales activity. Just 10,820 homes sold during Q3, a 19.16% decline from Q2. While some of that slowdown is seasonal, it also reflects a market where buyers are taking their time and being more selective. Homes spent an average of 75 days on the market, up from 72 days the previous quarter.

Inventory remains an important part of the story. There are currently 13,226 homes for sale across the Phoenix metro area, with another 3,508 under contract. At 3.67 months of inventory, the market isn't dramatically oversupplied, but buyers certainly have more choices and negotiating opportunities than they did during the frenzied market of a few years ago.

The takeaway? Phoenix isn't experiencing a housing market crash, but the balance has shifted. Sellers need to be realistic about pricing and presentation, while buyers may find opportunities to negotiate on price, repairs, and closing costs that simply weren't available a few years ago.

The Phoenix luxury housing market, consisting of homes priced above $1 million, experienced a noticeable slowdown during the third quarter of 2026. While average sale prices remained relatively stable, sales activity declined significantly, inventory increased, and homes took longer to sell.

The average sold price edged up 0.37% to $2,002,103, while the median sold price slipped to $1,450,000, down 1.36% from the previous quarter. The average price per square foot also declined 1.57% to $503.51, suggesting that even luxury buyers are becoming more price-conscious.

The biggest story is the sharp decline in transactions. Just 1,431 luxury homes sold during Q3, a 30.13% drop from Q2. Although some seasonal slowing is expected during the summer months, that's a substantial decrease in activity. Luxury properties also spent an average of 100 days on the market, compared to 92 days during the previous quarter.

Inventory is another important factor. There are currently 2,781 luxury homes for sale across metro Phoenix, with 608 under contract. At 5.83 months of inventory, the luxury segment is approaching a more balanced market, but buyers have considerably more negotiating leverage than those shopping below $1 million, where inventory stands at just 3.67 months.

The takeaway? The luxury market isn't collapsing, but it's clearly moving at a slower pace than the broader Phoenix housing market. Buyers have more properties to choose from and more room to negotiate, while sellers need to recognize that pricing, condition, and presentation are increasingly important. Simply listing a luxury property and expecting a quick sale at a premium price is no longer a realistic strategy.

The Phoenix condo, townhome, and patio home market continues to face some significant challenges, with declining prices, fewer sales, and growing inventory giving buyers considerably more negotiating power. In fact, this segment appears to be experiencing a more pronounced slowdown than the traditional single-family housing market.

The median sold price dropped to $309,000, down 3.44% from the previous quarter, while the average sold price declined 3.34% to $343,562. The average price per square foot also fell 2.45% to $267.88, reflecting continued downward pressure on prices.

Sales activity experienced an even more dramatic decline. Just 1,786 properties sold during Q3, a 27.13% drop from Q2. While some of this slowdown is seasonal, it's worth noting that sales were also approximately 7.5% lower than the same quarter last year. Properties spent an average of 99 days on the market, compared to 98 days during the previous quarter.

Inventory is perhaps the biggest concern for sellers. There are currently 3,716 condos, townhomes, and patio homes for sale across metro Phoenix, with just 601 under contract. At 6.24 months of inventory, this segment has shifted into territory that generally favors buyers, especially compared to the 3.67 months of inventory for single-family homes priced below $1 million.

The takeaway? Buyers shopping for condos, townhomes, and patio homes have some of the strongest negotiating opportunities in today's Phoenix housing market. For sellers, realistic pricing is critical, particularly when buyers are also factoring in HOA fees, insurance costs, and potential assessments. Properties that are overpriced or need significant updating may face longer marketing times and greater pressure for price reductions.