More predictable patterns in the Phoenix housing market have created new space for highly motivated agents to thrive. Mortgage rates dipping into the low 6% range in late summer sparked a burst of buyer activity — and despite October’s return to a slight rate increase coupled with ripple effects from the government shutdown, optimism remains high heading into year’s end.

This stabilization, while encouraging overall, is also introducing a layer of complexity that wasn’t present during the pandemic-era boom. Back then, frenzied demand meant buyers were waiving contingencies and making split-second offers just to stay competitive. Today’s clients are more discerning, transactions move at a slower pace and every deal requires careful negotiation and follow-through.

For agents, success in this next wave of market activity requires significantly expanded skill sets, stronger relationships and a go-getter, business-first mindset.

A cautiously optimistic market snapshot

The Phoenix market continues to send mixed but encouraging signals, with key indicators highlighting the need for patience, strategy and solid communication.

Rate fluctuations are modest, inventory is up and although homes are spending more days on the market, this shows buyers are taking time to weigh their options. Above all, both listing and sale prices have climbed year over year, with Phoenix REALTORS® data showing a 2.4% average increase. This tells us the market is primed for renewed activity.

The real challenge — and opportunity — lies in the rise of canceled listings. While some of these stem from economic uncertainty, many come down to misaligned expectations between agents, sellers and buyers. Pricing strategy, repair negotiations and communication breakdowns are often at the heart of these deals gone cold. Agents who can guide clients through pricing realities, keep negotiations constructive and manage an emotionally charged process with professionalism can turn potential fallout into successful closes.

At the same time, agents need to stay alert to external factors shaping the months ahead. Ongoing industry changes and challenges, as well as the downstream effects of the government shutdown, are creating new variables in the transaction process. Navigating these shifts with preparation and transparency will both protect clients and distinguish those agents who run their business with foresight and professionalism.

Closing skill gaps to stay competitive

As the market normalizes, it’s also exposing areas where agents can strengthen their craft. With longer transactions, more complex negotiations and clients who need hands-on guidance, agents have the opportunity to invest in deepening their skill sets to set themselves up for success.

Now is the time to:

• Sharpen people skills to better manage tension between buyers and sellers. Courses on negotiation and public speaking, for example, help improve strategic communications.
• Expand market and contract knowledge to anticipate issues before they surface and get up to speed on new and emerging changes. Attending industry events can help keep agents current.
• Take advantage of slower months to proactively strengthen marketing, refresh client databases and revisit workflows to create smoother, more scalable systems.

As the industry adjusts to new policies, technologies and expectations, ongoing learning and professional development that goes above and beyond required continuing education will become increasingly vital.

Ensuring successful deals with a relationship-first approach

Beyond real estate knowledge, guiding clients through shifting conditions demands empathy, clarity and trust. Buyers and sellers are facing information overload, fluctuating rates and heightened emotion, making it essential to:

• Acknowledge uncertainty rather than minimizing it. Clients value honesty over false reassurance, and proactive communication ensures alternative routes for a transaction should something not pan out as expected.
• Communicate face-to-face whenever possible, then follow up with written documentation to reinforce understanding. While virtual communications can be convenient, in-person interactions set the right tone and build critical trust.
• Stay in touch with periodical check-ins to stay top of mind whenever loved ones or past clients make their next move. Long-term relationship building and an active network are critical avenues to generate a healthy referral pipeline.

What’s ahead?

If interest rates hover around 6% — or potentially dip below — that could be the tipping point for currently sidelined buyers, triggering a wave of renewed demand that shifts the balance back toward sellers.

In the meantime, this Phoenix market rewards those who treat these slower yet promising months as a time of preparation instead of pause. Agents who build better business systems and client relationships now will be ready to adjust and act later.

Christy Walker is president of the Board of Directors of Phoenix REALTORS®.