The start of January 2026 has brought a fresh outlook to the Tempe, AZ real estate marketplace, offering a blend of stability and evolving opportunities for those considering a move, sale, or investment in the city. Is it a good time to buy in Tempe, AZ? With a current median sales price of $480,000, the value proposition for buyers and sellers is more transparent than ever. For those wanting affordable homes in Tempe, AZ this January 2026, it is essential to examine local trends and recent sales activity.
Understanding the pulse of Tempe, AZ means looking at the numbers. With 325 active listings and 210 new listings posted so far this month, inventory is proving steady. This is why it matters: more choices for buyers means less upward pressure on pricing, while sellers retain leverage due to consistent interest in the Tempe, AZ market.
Market Performance Overview for Tempe, AZ
If you are curious about how to sell your house fast in Tempe, AZ, note that the median days on market now sits at 24. Compared to the prior month where the median was 19, this is a sign that homes are taking a bit longer to sell--an important metric for sellers adjusting their listing strategies. The list-to-sale price ratio of 99.1 percent illustrates that homes are closing quite close to asking, but with 22 percent of sales requiring price reductions, some negotiation is returning to the table. Why does this matter? Both buyers and sellers have some negotiating room, but market data suggests pricing is still tight.
Recent property trends in Tempe, AZ can help you understand performance variations between price brackets and property types. For example, homes listed above $650,000 averaged 38 days on market while those under $400,000 moved much faster with a 15 day median. This type of insight helps you decide where your property fits in the broader supply and demand landscape and informs competitive positioning.
Key January 2026 Data Points
- Active Listings: 325 -- opportunities for buyers, and a sign of continued engagement for sellers.
- Median Sales Price: $480,000 -- a 2.8 percent increase year over year and a 0.4 percent uptick from last month, showing healthy appreciation.
- Closed Sales: 155 -- illustrating steady turnover in the market this January 2026.
- Median Days on Market: 24 -- up compared to December, meaning buyers may have more opportunity to negotiate while sellers should consider optimal timing.
- Months of Supply: 2.1 -- a balanced figure, suggesting neither side holds overwhelming leverage, which is key for both buyers and sellers to note.
- List to Sale Price Ratio: 99.1 percent -- most homes are selling very close to their list price, keeping expectations realistic.
- Price Reductions on Closed Sales: 22 percent -- evidence that strategic, well-timed pricing is crucial in this market.
- 30 Year Fixed Mortgage Rate: 6.10 percent -- slightly easing from Q4, which opens more doors for buyers mindful of monthly payments.
What Buyers Should Know This Month
Buyers in Tempe, AZ benefit from inventory stability and a slowdown in rapid-fire sales, making it a good month to search thoroughly. With the bulk of homes falling within the approachable $480,000 median price, first time and move-up buyers have choices. Key why it matters: Strategic buyers can act before further price or rate movements, giving them bargaining power.
In the two and three-bedroom segment--making up 64 percent of active homes--buyers have more selection and flexibility. Jeff Setlow believes current market trends give buyers a window to negotiate successfully while the sellers market retains just enough strength to keep deals moving forward.
Seller and Investor Insights for January 2026
Sellers should pay attention to the ticking median days on market and closed sales figures, using them to set realistic timelines and pricing. Pricing correctly is paramount: with a 99.1 percent list-to-sale ratio and rising price reductions, standing out from other listings is driven by strategic presentation. If you are aiming to maximize value or sell efficiently, January 2026 demands a data-driven strategy.
Why Investors Are Watching Tempe, AZ
The balance of 2.1 months supply signals a dynamic investment environment. Growing median price and a modest extension of average market time may present opportunities for those willing to target well-priced inventory. The entry level segment (homes under $400,000) is still moving quickly; investors looking for velocity or fix and flip deals may find value here.
- Mortgage structures: 77 percent of closed deals are conventional, with FHA at 16 percent and VA at 7 percent.
- Expired or withdrawn listings now sit at 9.3 percent, so sellers must be strategic but buyers may uncover fresh options as unsold homes return.
Lifestyle and Community Update
January 2026 continues to reflect Tempe, AZ’s growth story. Local amenities, nearby employers, and a vibrant atmosphere bring consistent demand to the city’s property market--helping both buyers and sellers achieve their goals with confidence. Explore Tempe, AZ buyer opportunities or discover your potential as a seller in this ever changing space.
Map Your Move in Tempe, AZ
Speak with Jeff Setlow about timing, pricing, and neighborhoods that fit your goals this January 2026. For tailored guidance, connect at or check out See local insights.
