Only 17% of Metro Phoenix Area homebuilders have sold inventory homes for the price they have advertised those homes at prior to a contract being signed. On average, builders have discounted them further, by an additional $11,356.

Despite surging mortgage interest rates, the total number of Metro Phoenix Area new home sales increased by 2% in September.

Pulse subscribers can expect the latest Submarket and Metro level data and forecast in the October 2026 Pulse publication next week. StreetSmarts subscribers can download the latest community level sales figures now!

Potential homebuyers are being inundated with news of rising bond rates and mortgage rates. Do they know that nearly EVERY Metro Phoenix Area homebuilder is buying down rates for buyers today?

You can see the effect of rising rates in incentives. August data is revealing. The average inventory home incentive was $60,715 (it is even higher today, as we will report in our early October Pulse report), up 25% from March. The value of the incentives is not higher because builders are offering more. The rate is higher because the cost of buying the market rate down grows when market rates rise.

Builders are enabling more buyers to purchase, making home payment more affordable, by prepaying interest for homebuyers.