June sales volume in the MLS finished about 8% higher than a year ago. However, June 2026 had 21 business days compared to 20 in June 2025, meaning roughly 5% of that gain came from the extra business day. After accounting for the calendar, sales activity still posted a modest year-over-year increase.
Supply continued to tighten in June, with active inventory down 5% from last year. Asking prices also recorded their 26th consecutive month of year-over-year declines. While prices continue to trend lower than a year ago, the pace of those declines has been moderating. During the second half of 2024 and most of 2025, median asking prices were generally down in the high 3% to 4% range. More recently, annual declines have narrowed closer to 2% to 3%. Combined with lower inventory and stronger contract activity, this suggests the downward pressure on prices is beginning to ease, even though prices have not yet turned positive.
Buyer demand continues to strengthen. Under-contract listings have increased year over year for 12 consecutive months, while escrow fallout improved to 7%, down from 8% last year. More buyers are writing offers, and a higher share of those contracts are making it to the closing table.
Trustees’ deeds also continued to increase. Residential foreclosures in Maricopa County rose from 83 to 134 compared to last June, making this the highest June total in the past seven years. Most of these properties trace back to loans that first became distressed in 2021 and 2022. Even so, foreclosure activity remains well below historical levels and appears to reflect the resolution of older distressed loans rather than a wave of new financial distress.
Takeaway: The first half of the year showed a market that is slowly correcting its imbalance. Demand has strengthened enough to reduce inventory and slow the pace of price declines, but not enough to push prices higher. That leaves the market in a transition period rather than a recovery.