Justin Sullivan/Getty Images
Audio By Carbonatix
Over the last few months, Arizona’s housing market has been healing. Now, it’s about ready to remove its Band-Aids, too.
The median listing price of Arizona homes saw one of the largest declines nationwide, according to a study by cabinet company CabinetSelect that analyzed data from Realtor.com. The median listing price for an Arizona home dropped $15,470 between the first quarter of 2025 and the same quarter of 2026, the sixth-largest decrease among all 50 states. Hawaii (-$46,792), Massachusetts (-$35,233), and Wyoming (-$24,525) saw the biggest drops in median listing prices.
CabinetSelect
That sounds bad, though, right? Not necessarily. This decrease in the listing price isn’t a cause for concern, said Scottsdale-based real estate agent Zack Heene. Instead, it’s normal after the market spiked during the COVID-19 pandemic and transplants moved to Arizona for cheaper housing and a lower cost of living, which “drove up the price during those few years” and “overinflated everything,” Heene said.
“It’s a product of the market from pre-COVID into the beginning of COVID when it grew so fast,” Heene said. “Values went up so much. It was kind of out of whack.”
The median listing price in Arizona was $472,826 in the first quarter of 2026, down more than $28,000 from the first quarter of 2024. Over the last two years, homes have also spent more days on the market. In 2024, homes spent an average of 50 days on the market, per the study, but homes have spent an additional 10 days on the market so far this year.
As the CabinetSelect study says, the drop “suggests buyers in the state have more negotiating power than they’ve had in years.” Heene added that the Arizona housing market is “correcting — the ask price is coming down.”
When the market spiked, thanks in part to a lack of supply and historically low mortgage rates, sellers saw homes going for crazy-high prices. When the market flattened, sellers were “just asking too much,” Heene said. Eventually, they significantly dropped listing prices in order to move their homes. Now, it appears sellers are listing their properties appropriately.
A flat Arizona housing market is one that buyers and sellers can expect over the next year or so. Last year, the National Association of Realtors predicted the nationwide housing market would see a decent 14% surge in home sales. But then, just last week, the organization said home sales are expected to see only a “modest 4% increase this year,” influenced by higher-than-anticipated mortgage rates, oil prices, the war in Iran and inflation.
