Northeast Valley Real Estate Insights – July 2025

“The Housing Inventory is Here – Where Are the Buyers?”

That was the headline from a recent article in REALTOR® Magazine. Here in the Valley we’re seeing the highest number of homes for sale in almost a decade, yet sales are lagging. Why?

“At this critical stage of the housing market, it is all about mortgage rates,” said Lawrence Yun, chief economist at the National Association of REALTORS®. “Home buyers in nearly every region of the country are in a better position to negotiate more favorable terms.”

His comments were confirmed by a Realtor.com post stating Phoenix was leading the nation in price reductions: 31.3% of listings had price cuts in May.

This is an opportunistic time to buy a home. Right now you have more homes to choose from with fewer buyers to compete against.

If interest rates are making you hesitate, there are some creative strategies to secure a lower rate. I recently spoke with Tracy King and Michael Burke at Prosperity Mortgage about one strategy called “seller concessions.”

“Seller concessions are costs that the home seller agrees to pay, to help the buyer complete the purchase, explained Burke.  “These are often used to make the home more affordable for the buyer.”

I asked Tracy to give me an example. “The seller might agree to cover part of the buyer’s closing costs such as loan fees, title insurance, or prepaid property taxes,” explained King. “This doesn’t lower the price of the home but it reduces the amount of cash the buyer needs upfront.”

Also common is a “buy down” concession to secure a lower interest rate. Let’s say you offer to buy a home for $1 million but you also ask for 3% seller concessions. That’s $30,000 you can use to secure a lower interest rate.

One variation on that theme is a 2-1 buydown. “A 2-1 buydown is a type of temporary mortgage rate reduction that lowers the interest rate for the first two years of the loan to make monthly payments more affordable at the beginning,” Burke said.

In May, 50 per cent of single family homes sold in Maricopa County included seller concessions to the buyer, and June was trending similarly.

There are limits to concessions based on the loan type. A knowledgeable REALTOR® and mortgage loan specialist can help you take full advantage of this buyer’s market.

Darrell Doepke is a full-time, RealTrends Verified Top 1% Realtor® in Arizona (2024), specializing in Carefree, Cave Creek, and North Scottsdale luxury homes. With a background in marketing and journalism, Darrell tells each home’s story to grab buyers emotionally. His narrated property videos showcase this strategy, and he invests more in marketing than most agents. He lives by his motto: “I don’t wait for buyers — I pursue them.” Darrell is VP of Community Partners and founder of Community Fest, an October event supporting local nonprofits. He is known for his SRES® designation assisting seniors; his Midwest values, and community leadership. Clients often say he’s the best Realtor® they’ve worked with.