Where Phoenix Buyers Are Quietly Getting the Best Deals Right Now

There’s something a lot of buyers in Phoenix are missing right now: some of the best real estate deals aren’t showing up as price reductions. They are not happening by lowballing homes that are “stale” and sitting on the market. While these can and do certainly happen, there’s another much stealthier way home buyers are getting the best deals on homes right now.

On the surface, when you compare a brand-new home from a builder, vs a 10-15 year old previously owned home, it can look like the brand new home is more expensive with a slightly higher price tag, but that’s not always the case. When you look a layer deeper, you’ll find builders are often offering incentives that have a much bigger impact on your expenses than the savings in just purchase price alone.

The biggest one right now is interest rate buy-downs and closing cost credits. Instead of lowering prices, many builders are putting that money toward reducing your interest rate, sometimes substantially below market interest rates. On a typical Phoenix purchase, that can save a buyer hundreds or more per month, which is far more meaningful than a small price cut.

The gap really shows up when you compare two similar homes, one resale, one new build. The resale might look slightly cheaper on paper, but by taking on today’s full interest rate your payment is still higher. Meanwhile, the builder is covering closing costs, buying down your rate, and sometimes throwing in upgrades on top of that. When you run the numbers side by side, the new build often wins by a wide margin in terms of monthly affordability.

That doesn’t mean every new build is automatically a better deal, and not every builder is aggressive with incentives. But if you’re a buyer sitting on the sidelines waiting for prices to drop, it’s worth understanding that the real opportunity right now isn’t always in the list price. It’s in how the deal is structured.

Here’s a side-by-side case for one popular community in North Phoenix (The Ridge at Stone Butte) showing their current incentives including below market interest rates, as well as closing cost credits. This compares a new $700k home in this community, versus an even less expensive $660k previously owned home nearby.

In addition to those builders provided incentives, when I represent buyers in new construction communities like the Ridge at Stone Butte, I generally extend an additional $5,000 credit towards your costs and can help you get upgrades included. When you start to factor it all in, including lack of repair bills on new homes, the improved energy efficiency of new construction, these are among the best deals buyer are locking in right now.

Contact me if you are interested in learning more about some of the best new home opportunities in the valley!