By Sean Colón
The Arizona housing market is always evolving, yet outdated narratives persist. Many homebuyers, sellers, and even realtors cling to misconceptions that no longer reflect today’s reality. If you’re navigating the Phoenix real estate market, knowing the facts can give you a competitive edge. Let’s debunk seven common myths that could be holding you or your clients back.
Myth #1 – Buyer Demand is Declining
This was true in 2022 and 2023 when rising mortgage rates pushed many buyers to the sidelines, but not anymore. Demand is now stable and following last year’s seasonal trends. Despite rates hovering above 7%, the market is not seeing the steep drop-offs in buyer activity that some expected.
Myth #2 – Homes Under $300K Are Impossible to Find
In early 2022, affordable homes were scarce, with only 90 single-family listings under $300K across Maricopa and Pinal counties. Today, buyers have significantly more options—534 single-family homes are available in this price range, mostly in Pinal County. Condo and townhome inventory has also surged from just 156 listings in March 2022 to over 1,200 today, creating new opportunities for budget-conscious buyers.
Myth #3 – Homebuyer Assistance Programs Are Only for Low-Income Buyers
Many people assume they earn too much to qualify for down payment assistance, but several Arizona programs cater to higher income brackets. Some grants have limits as high as $150,000 per year, while others don’t have income restrictions at all. The key is researching available programs and working with a knowledgeable lender to unlock thousands in potential savings.
Myth #4 – You Must Be a First-Time Buyer to Get Assistance
HUD defines a first-time homebuyer more broadly than many realize. If you haven’t owned a home in the past three years, you qualify. Additionally, divorced individuals who only owned a home with a spouse and single parents are also eligible. Even mobile home owners may qualify under certain programs. This expanded definition means more buyers have access to financial assistance than they might expect.
Myth #5 – High Mortgage Rates Mean There’s No Way to Save
Yes, today’s mortgage rates are higher than in previous years, but smart buyers are finding ways to lower their costs. In January 2025, 57% of sales in the $200K-$600K range involved seller-paid incentives—many of which went toward temporary or permanent rate buydowns. Additionally, roughly 10% of active listings have assumable FHA or VA loans with rates below 5%, offering an attractive alternative to new financing.
Myth #6 – The Arizona Market is in a Bubble and Prices Are About to Crash
If Phoenix had a housing bubble, it already popped—in 2022. Home prices peaked in May of that year before dropping 12.3% by December. Since then, prices have stabilized, with year-over-year appreciation sitting below inflation in most price ranges. While some areas see slight price drops, the market is far from a freefall. Sellers today are negotiating prices about 1.9% below list—far from the 2.4% bidding wars seen in 2022.
Myth #7 – Selling "As-Is" with Buyer Incentives is Enough
In a strong seller’s market, an aggressive price and incentives could make up for a home’s condition—but not today. In a buyer’s market, well-maintained properties stand out. Pricing competitively is important, but homes in top condition will always attract more interest, especially when buyers have options. The hierarchy of importance isn’t price first, then incentives, then condition—it’s condition and price that matter most.
Final Thoughts for Arizona Realtors
Arizona’s real estate landscape is changing, and realtors who stay informed will have a clear advantage. Outdated assumptions can lead to missed opportunities for both buyers and sellers. By understanding today’s market realities—such as stable demand, growing affordable housing options, and creative financing solutions—you can better guide your clients and close more deals. The key to success in 2025? Knowing the facts, debunking the myths, and positioning yourself as the go-to real estate expert in Arizona.
By the way, I help realtors improve their online and social media presence by providing beautiful photos of their listings. That is why I’ve created this FREE HOME PREP LIST for your clients to help your listings look their best. Feel free to share.