Phoenix Market Update: What We’re Seeing from the Lending Desk

Phoenix Market Update: What We’re Seeing from the Lending Desk

The Arizona market is shifting, but not collapsing.

Here’s the current snapshot across the Phoenix metro:

• Inventory up 39% year over year

• 4.4 months of supply metro-wide

• Days on market averaging 66–74 days across the Valley

• Median price holding near $480K

• Submarkets like Scottsdale still trading north of $1M

This is not 2021. But it is not a distressed market either. It is balanced.

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What This Means for Fix-and-Flip Operators

You now have:

• More time to find deals

• Less bidding war pressure

• More negotiating leverage on the front end

But exits require more discipline.

The 30-day flip is largely gone. Operators should be underwriting for 90–120 days on market post-rehab, especially outside premium submarkets.

In this environment, conservative ARVs and realistic hold timelines matter more than squeezing every dollar out of leverage.

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What We’re Funding Right Now

This month we’ve closed loans in:

• Tempe

• Mesa

• Gilbert

All first-position loans. All experienced borrowers with strong track records.

We are seeing steady demand for fix-and-flip capital in the East Valley, where inventory remains tighter at roughly 3.5 months compared to 4.4 months metro-wide.

Ground-up construction is also moving, particularly with builders who have a proven process and tight cost controls.

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What’s Working in Today’s Market

From our seat on the lending side, deals are getting done when they include:

• Conservative basis

• Realistic ARVs

• Clear exit strategies

• Borrowers who understand timeline risk

In the past two weeks, we closed three deals within 7–10 days from application to funding.

The common denominator was not aggressive leverage. It was clarity.

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Bottom Line

The Phoenix market is more balanced than it has been in years. That favors disciplined operators.

More inventory creates better selection. Less bidding pressure creates better entry points. But longer days on market mean your underwriting needs to account for time and friction.

Execution and conservative structuring are separating strong operators from hopeful ones.

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If you are evaluating a deal in today’s Arizona market and want to understand how we are viewing leverage, timelines, and exit risk, reply to this email or submit an initial application at weare42solutions.com.

We are always open to conversations with operators who are underwriting realistically and planning for execution.