Understanding Supply & Demand in Today’s Phoenix Real Estate Market
When it comes to determining home value, there are two major forces that drive the Phoenix real estate market: supply and demand. These factors influence pricing, competition, and overall market conditions across the Valley.
Here in the Phoenix metro area, the market shifts constantly based on how many homes are available and how many buyers are actively looking. As a certified appraiser and owner of Benson Appraisals, I see daily how these trends impact home values in cities like Gilbert, Mesa, Chandler, Queen Creek, Scottsdale, and beyond.
What Is Supply & Demand in Real Estate?
In real estate, understanding supply and demand is crucial:
Supply = the number of homes currently for sale
Demand = how many buyers are competing for those homes
When demand is high and supply is low, prices rise.
When supply grows and demand weakens, prices soften.
When both remain balanced, the market stays stable.
This balance ultimately determines whether the Phoenix market favors buyers or sellers.
Current Market Overview
(You can easily update this section monthly inside Go High Level using MLS or Cromford Report data.)
Key indicators that influence the Phoenix housing market include:
Inventory levels — rising or falling
Buyer traffic — strong, moderate, or slowing
Sales-to-list price ratios — selling above or below list
Price reductions — increasing or decreasing
Days on market — longer or shorter
These metrics help appraisers and homeowners understand the direction of the market.
How Appraisers Analyze Supply & Demand
Many homeowners assume appraisals rely only on closed sales. But market conditions play an equally important role.
At Benson Appraisals, we examine:
✔ Absorption Rate
How quickly homes in the area are selling.
✔ Pending Sales
These reveal the most current buyer behavior and short-term trends.
✔ Active Listings
These show your direct competition and help determine the upper limit of value.
✔ Seller Concessions
More credits and concessions typically indicate softening demand.
✔ List-to-Sale Price Patterns
These trends show whether buyers are offering aggressively or negotiating hard.
Together, these factors reveal the most probable price a buyer would pay in today’s Phoenix market.
A Real Appraisal Example
Recently, I appraised a home in East Mesa. Within the same subdivision, three similar homes were listed around the same time:
Two sat on the market for weeks with multiple price reductions
One sold quickly within just a few days
Why?
The fast-selling home aligned with buyer expectations—realistic pricing, attractive updates, and strong presentation. The other two were simply priced beyond what current buyer demand could support.
This is a clear example of how supply, demand, and market conditions—not just square footage—shape value.
Why Supply & Demand Matter to Homeowners
Whether you're:
Selling
Buying
Refinancing
Handling estate planning
Ordering a private appraisal
…understanding market supply and buyer demand helps you make smarter real estate decisions.
A professional appraisal gives you:
A clear, unbiased value
Data-driven insights
A realistic picture of today’s housing market
The confidence to move forward
Not last year’s headlines. Not neighborhood rumors. Real value based on today’s Phoenix market.
Final Thoughts
The Phoenix real estate market is always changing, and supply and demand can shift fast. When accuracy matters, Benson Appraisals provides clarity, expert analysis, and confidence you can rely on.
If you have questions or need a private appraisal, we’re here to help.
📩 Contact Benson Appraisals at 480-926-8528 or email us [email protected].
