By AZ Big Media
As Phoenix enters 2026, the housing market is predicted to continue to recover from the whiplash cycles of the early 2020s. Closed sales have risen from their post-pandemic lows, mortgage rates have stabilized enough for buyers to negotiate, and the Valley’s long-stagnant inventory is beginning, slowly, to shift.
Behind the Valley’s stabilizing sales and moderating prices is a regional economy that continues to grow faster than the nation’s. Workforce and migration patterns are being influenced by Phoenix’s transformation into a semiconductor, healthcare and advanced manufacturing hub. At the same time, buyers and sellers are still adjusting to higher borrowing costs, inflation pressures and a tightening consumer mindset.
No longer is the housing market too hot or in correction, it’s recalibrating. The big question, as experts see it, isn’t whether Phoenix will grow. It’s how that growth will interact with affordability constraints, limited supply and consumers who still aren’t sure what to believe about the economy.
