The new Arizona REALTORS® leadership team offered an optimistic outlook for the state’s real estate market in 2026.
Buyers and sellers will both have more confidence in 2026, the association said in a news release, thanks to a more stable market than years past. That will be a contrast from 2025, when stubborn interest rates kept many sidelined from market action.
“Despite current interest rates, home values in Arizona remained stable, but properties stood out for how long they spent on the market,” explained 2026 President Lisa Paffrath. “This encouraged buyers and sellers to be more thoughtful in their decisions and showed why it’s important to work with a professional Realtor who understands how to price your home for the local market.”
However, expected interest rate cuts in 2026 are likely to draw even hesitant buyers back to the market.
“Uncertainty has been the defining theme economically, politically and globally, but even modest interest rate improvements could quickly change buyer behavior,” said President-Elect Shane Cook. “If rates come down, more buyers, and to a degree more sellers, will enter the marketplace, potentially shifting market balance.”
Buyers will also find new entry points into the market next year, thanks to new construction and growth in many parts of the state, including the Phoenix area. Sellers are also more likely to offer concessions as buyers gain leverage, easing affordability constraints.
“New construction and expanding suburban markets will continue to provide important opportunities for buyers across Arizona in 2026,” said Treasurer M. Teresa Rubio. “Improving inventory and seller concessions are helping buyers move forward. Demand continues to grow from millennials, Gen Z buyers and those relocating to Arizona, and that trend is expected to continue.”
“Builders are more competitive than we’ve seen in years, offering rate buydowns, move-in-ready homes and additional incentives,” added First Vice President Paul Baker.
And 2026’s prospective buyers have their priorities in order: A recent Arizona REALTORS® survey found that buyers — regardless of age — desire turnkey homes, safe communities and access to outdoor amenities and recreation opportunities.
Some generational differences may linger, though. Younger buyers are likely to seek out updated kitchens, open floor plans and long-term equity-building opportunities, while their older counterparts will be on the hunt for single-story, low-maintenance homes.
That intentionality, regardless of age, is partly why association leadership expects a healthier housing market in Arizona next year, despite nationwide socioeconomic uncertainty.
“These findings reinforce that buyers are intentional,” said Sindy Ready, past president. “Arizona is no longer a frenzied market. It is driven by informed choices.”