How Consumer Confidence Is Shaping Today’s Housing Market

By Erik Kelly

Erik Kelly has been a top-producing real estate professional since 2002 and a proud Phoenix resident since 1996. His deep community ties and industry reputation have enabled him to build a thriving, referral-based business.

Consumer confidence is shifting the housing market faster than most people realize. Right now, confidence—not just interest rates—drives the real estate market. Buyers are paying closer attention to headlines about the economy, layoffs, stock performance, and tariffs. That hesitation shows up in how homes sell, how long they stay on the market, and how offers come in. It’s not that people don’t want to move. It’s that they’re more cautious about when and how they do it. And that hesitation is reshaping the market in real-time.

Home prices aren’t crashing; they’re adjusting. There’s been a lot of talk about prices dropping, but what’s happening is a market correction. Some homes were significantly overpriced, often based on old trends or aggressive seller expectations. When those properties didn’t move, prices adjusted, not because the entire market dropped but because they were never priced realistically to begin with. Today’s buyers are doing their homework, and if a home isn’t priced correctly, they’re walking away. That’s why accurate pricing is more critical now than ever.

For buyers, this is a window of opportunity. Inventory has increased in many areas, including a 50% jump in Arizona. That might sound dramatic, but it simply means the market is returning to a healthier balance. More listings mean more choices and fewer bidding wars. At the same time, many buyers are holding back, waiting for better interest rates. If those rates dip, demand will surge again. Buyers who act now could avoid the wave of competition that’s building.

Timing matters, but strategy matters more. Every market is local. What’s happening in one part of town or with one type of property may not apply to yours. That’s why it’s critical to understand your specific segment of the market. Whether buying your first home, moving up, or selling a luxury property, you need precise, current data and a plan that fits your goals.

If you want to make the most of this moment, I’m here to help you navigate it. Let’s discuss your options and create a strategy that fits your timing, priorities, and the market today. Call 480-382-6444, email clients@erikkellyhomes.com, or visit erikkellyhomes.com to schedule your consultation.