Is It a Buyers' or Sellers' Market?

It looks like Spring has finally sprung in Flagstaff! Warmer weather is on the horizon and it might be safe to plant flowers in the coming weeks. Our real estate market has also seen some changes.

The first quarter of 2026 highlights a market in transition. While prices have softened slightly and sales activity has slowed, a key change is shaping the landscape: more active listings compared to 2025, giving buyers increased options and creating a more balanced environment overall.

Here are a few key market highlights:

• Home Prices Ease Slightly
  The median sold price landed at $663,250, a 4.3% decrease year-over-year. Price per square foot also dipped 2.6% to $371, reflecting a modest cooling while still holding strong relative to historical norms.
• Inventory on the Rise
  One of the most notable shifts this quarter is an increase in active listings compared to Q1 2025. More inventory means less competition among buyers and more opportunity to find the right property without the urgency of past markets.
• Sales Activity Slows
  A total of 206 homes sold, down 9.3% from last year, suggests some buyers are taking a more cautious approach amid changing conditions.
• More Room to Negotiate
  Homes sold for 94.9% of original list price, compared to 96.9% in Q1 2025. This indicates a growing willingness among sellers to negotiate as buyers gain leverage.
• Cash Sales Decline
  Cash transactions made up 28.6% of sales, down 13.3% year-over-year, pointing to a shift away from investor-heavy activity and toward traditional financed buyers.
• Longer Time on Market
  Median days on market increased to 80 days, a 19.5% rise, reinforcing the trend toward a more normalized pace.

What does this all mean for you? If you are a seller with more competition on the market, pricing and presentation matter more than ever. Homes that are well-prepared and accurately priced are still selling—but patience and strategy are key. If you are a buyer, this is a more favorable environment than we’ve seen in recent years. Increased inventory, longer market times, and improved negotiating power provide a window of opportunity.

The bottom line is that 2026 is shaping up to be a more balanced and sustainable market. With increased inventory and shifting dynamics, both buyers and sellers can find opportunity—if they approach the market with the right strategy.

If you’d like a customized market analysis or want to explore your options, feel free to connect anytime. Your continued trust and referrals are so appreciated. 

Wishing you and yours many blessings,

Kim