Tempe, AZ January 2026 Market Review: Listing, Selling, and Buying Insights

This month, the Tempe, AZ real estate market presents a dynamic environment for both seasoned sellers and first-time buyers. Are you considering making a move and want to know if it is a good time to buy in Tempe, AZ? Let us break down the numbers and explore why this January 2026 offers unique opportunities and considerations for anyone entering the market.

With Tempe, AZ showcasing 325 active listings and 210 new listings, inventory reflects equilibrium not seen in previous years. The importance of balanced supply is felt across the board: buyers have a wider array of choices while sellers enjoy continued interest in local housing, especially as the median sales price has settled at $480,000.

Trends Shaping the Market in Tempe, AZ: January 2026

Key metrics tell a compelling story: the median days on market has increased to 24, giving buyers some extra breathing room to evaluate properties. Meanwhile, closed sales for January total 155, and a list-to-sale price ratio of 99.1 percent emphasizes a tightly negotiated marketplace. Why it matters: both buyers and sellers can transact more confidently when expectations match actual selling prices.

Opportunities and Strategies for Buyers

If you’re searching for affordable homes in Tempe, AZ this January 2026, current inventory is weighted toward two and three-bedroom homes, which make up 64 percent of listings. That means enhanced selection within the most popular segments. Jeff Setlow has been guiding clients to act decisively, seeing that with an average 24 days on market, buyers willing to move quickly still have a competitive edge even in a slightly slower pace market environment.

• Median sales price: $480,000
• Average price per square foot: $315
• Median days on market: 24
• Months of supply: 2.1
• Closed sales: 155

Selling Smarter in January 2026

Sellers will note that 22 percent of homes closed after one or more price reductions. The best strategy for how to sell your house fast in Tempe, AZ rests on being proactive with pricing and presentation, especially with upper-end listings spending an average of 38 days on the market compared to just 15 days for entry-level properties. Accurate pricing is paramount to maximizing value and minimizing time to close.

Important Takeaways for Investors and Homeowners

The current 2.1 months of supply and the active mix of buyers and sellers provide a balanced backdrop for anyone considering a real estate move. The percentage of expired or withdrawn properties sits at 9.3 percent, underscoring the need for preparation and adaptability, while mortgage rates at 6.10 percent support competitive financing options with 77 percent of deals closing conventionally. As we move deeper into January 2026, understanding the nuances of Tempe, AZ local market insight becomes a strategic advantage for informed decisions and future planning.