February 2026 Market Report presented by Ashlee Donaldson
The February 2026 Market Report is here to keep you connected to market updates, featured homes, and everything happening in and around the Phoenix Valley each month. Take a look around our website while you’re here – you’ll find our featured properties, learn more about our team, and discover resources designed to help with your next move.
What Home Buyers Should Know:
Contracts in Escrow Up 7% Over Last Year
The homebuying season is entering it’s busiest time in Arizona, and so far contracts in escrow are 7% higher than this time last year and they’re expected to peak over the next 2-3 months. Currently, demand is considered 16% below normal for this time of year, but last August it was 24% below normal so conditions have improved since rates dropped to the low 6% last September.
Current Inventory:
The Valley Demand:
Not all cities are below normal in demand. In fact, Apache Junction is 23% above normal for demand and normal for supply, ranking the city as the 4th strongest seller’s market for now. Many growing cities in buyer’s markets have normal levels of demand, but high supply. These cities include Buckeye, Gold Canyon, Goodyear, San Tan Valley, and Surprise, where annual sale have increased quickly over the past year as a growing number of buyers have taken advantage of attractive seller and builder incentives. Developers have responded by scaling back the number of permits to avoid prolonging the oversupply situation and encourage a more balanced market.
The Bottom Line
Bottom line, buyer demand is improving as conventional mortgage rates have remained stable in the low-6% range for nearly 6 months now; both FHA and ARMs are in the mid-5% range. Non-luxury home prices below $800K are down an average of 4% from last year. Every 0.1% drop in price is another 1%, which equates to an extra $10 savings per $1,000 in payment. Combining the rate declines and price declines since this time last year, mortgage payments are down an average of 14% for median-priced homes, so a $2,500 payment quoted last year would be $350 less this year for the same house. For those buyers who are in a position to purchase a home, there is a little advantage to delaying a purchase 3-6 months for prices or rates to decline further as it may only save an extra $30 or less per month in payment.
What Home Sellers Should Know:
The Market is Better, But It’s Not Easy for Sellers
Testing the Boundaries:
Where Buyers Stand:
Recommendations for Sellers:
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