A recent Realtor.com report found that the median list price for a home in Phoenix sits at $510,000, but homes are selling for the median price of $469,000. The gap signals what many agents already know — that the Phoenix housing market is experiencing a reset favoring buyers. As inventory climbs, new home builders and individual resellers are meeting buyers where they are with incentives and concessions.
From mid-2020 through early 2024, new home builders enjoyed an advantage over existing home resellers as inventory was limited but demand to move into the Valley was high. Buyers had to rely on new home builders to satisfy this demand and provide homes for eager buyers. This dynamic switched at the beginning of 2025, when home inventory began to rapidly rise and saturate the market. Many homeowners who purchased new builds were, and are, looking to sell their former homes.
Phoenix is approaching pre-pandemic inventory levels again, meaning that buyers are enjoying increased options, and sellers are facing longer listing times. In response, builders are responding with attractive perks, but these offerings come with fine print that buyers and resellers alike shouldn’t overlook.
Builders have long enjoyed the benefit of scale, working with their network of preferred contractors, suppliers and lenders to offer exclusive packages that resellers cannot match due to lack of relationships. Popular incentives from builders right now include:
Design option upgrades: Commonly sought by more affluent buyers unconcerned by down payment costs, new home builders have an advantage over resellers due to their relationships with contractors and appliance suppliers. Builders can bundle high-demand finishes and amenities like energy-efficient smart thermostats, top-line kitchen appliances and quartz countertops, though these offerings are typically reserved for inventory homes with pre-selected packages.
Closing cost assistance: Appealing to home buyers who might not be able to afford the initial down payment, this option sees home builders offer financial assistance in covering closing costs, increasing the likelihood of a property selling at a faster rate. The average wait time for listed homes on the market right now is about 50 days, but builders offering financial assistance with closing costs can expedite this process.
Interest rate buydowns: While popular, interest rate buydowns can be misleading due to their temporary nature. As rates linger around 7%, builders can advertise rates as low as 3.99% for the first couple years. However, many cost-concerned buyers who accept these buydowns may not read the fine print of the agreement, which stipulates that these attractive rates are not permanent, and are often tied to that homebuilder’s lending entity. A common offering is the 2-1 buydown, which means that during year one of living in a home, a buyer’s rate will be 2% lower, then 1% the second year, before the buyer assumes the full rate during year three of occupancy. These are prepaid interest subsidies and not a tool for affordability. After the initial years, the buyer’s payment jumps, and unless they refinance (at what could be an even higher rate), they may be stuck with a less financially appealing deal. The long-term impact may not be as competitive as one a buyer might find if they had shopped for a mortgage individually instead.
The competitive edge for existing home sellers
Despite these flashy perks from homebuilders, resale homes offer real, lasting advantages when positioned strategically. Existing home sellers are seeing advantages over builders by leveraging the following:
Convenient, centralized, matured locations: A home’s location can be a differentiating factor that favors existing home resellers, as these properties are often located within central and more mature main neighborhoods with established schools, desirable amenities, great retail options, public transportation and easy hospital access. Despite the often more affordable home prices of new home builds situated in remote, young communities, many buyers opt for areas that are close to their place of employment and don’t require long commute times. The costs of transit can add up, and can push a buyer to seek out an existing property within the Phoenix metropolitan.
Manicured, attractive outdoor living: Starting from the ground-up — literally — can be an intimidating prospect for a buyer when faced with the empty dirt yard of a new build. If a newly built home has had its yard developed, landscaping is often relegated to the front of the property only, or it has xeriscaping meeting the minimum requirements of an HOA. An existing home has the advantage of a property that is more likely to have mature landscaping, as well as sought-after home amenities such as a pool or backyard casita. Buyers can acquire an already-curated, cared-for space without having to invest money and time into making the backyard hospitable and ready for use. Property owners should keep up on landscaping during the home selling process, as having these spaces manicured and presentable can be a boon for a buyer.
Cost-effective cosmetic changes: Buyers can pursue countless budget-friendly cosmetic upgrades to boost their home’s appeal to buyers and stay competitive with new builds. If a seller is still living in the home while it is being sold, they might opt for neutral, sparse décor without personalized home touches or clutter. Occupants might work with a realtor to have the property professionally staged, allowing the buyer to imagine life inside the home with room to envision their personal belongings within it. Sellers can do things like paint walls and upgrade the home’s lighting and flooring to make a resale home feel new again.
Builders might have extensive connections and relationships with contractors and lenders, but resale sellers have the advantages of location, lifestyle and move-in readiness in their arsenal. In a market shifting toward balance, these qualities can turn tables in a reseller’s favor. With smart pricing and thoughtful home presentation, home resellers can compete — and win — in Arizona’s current housing market.
Editor’s note: Lauren Fox is vice president of marketing at HomeSmart. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
