If you have been trying to buy a home in Ahwatukee, Chandler, Gilbert, Phoenix, or another East Valley community, you may have wondered how you are supposed to compete against investors.

That concern is especially common among first-time homebuyers who are shopping in the more affordable part of the market.

The good news is that recent data shows investor home purchases in the Phoenix Metro area have declined year over year. Investors are still active, and they remain an important part of our housing market, but they are purchasing fewer homes than they were previously.

For individual buyers, that may mean less investor competition on some properties and a better opportunity to have your offer considered.

Investors Are Still Active, but They Are Buying Fewer Homes

It is important to keep this in perspective. Investors have not disappeared from the Phoenix market.

They still purchase a meaningful number of homes, particularly properties that fit their rental or investment criteria. However, recent Phoenix Metro data shows the number of investor purchases has declined compared with the previous year.

That matters because buyers sometimes assume every reasonably priced home will immediately be purchased by an investor with cash.

That simply is not happening with every property.

If investor competition was one of the reasons you stepped away from your home search, I believe today’s market is worth another look.

Why Some Investors Are Becoming More Selective

Investors evaluate homes differently from people who plan to live in them.

They usually have to consider the purchase price, expected rent, insurance, property taxes, repairs, maintenance, renovation costs, and other expenses before determining whether a property works as an investment.

As those expenses increase or home prices change, some properties may no longer make financial sense for an investor.

A homeowner has a very different reason for buying.

You may be looking for a neighborhood you love, a shorter commute, another bedroom, better schools, a larger yard, or simply a place where you can build your life.

When an investor decides the numbers do not work for them, that same home may still be an excellent opportunity for someone who wants to live there.

This Can Be Especially Important for First-Time Homebuyers

Investor competition tends to matter most in the more affordable price ranges, which is exactly where many first-time homebuyers are shopping.

And those homes continue to be an important part of the Phoenix Metro market because there is still limited inventory at the more affordable end of the market.

That means fewer investor purchases can be meaningful.

It does not mean every first-time buyer will suddenly have no competition. Well-priced homes in desirable neighborhoods can still attract multiple buyers.

But if fewer investors are competing for those properties, individual buyers may have a better chance to participate.

A Financed Buyer Can Still Compete

Another misconception I hear is that a buyer using financing cannot compete against a cash offer.

Cash can certainly be attractive to a seller, but it is not the only thing a seller considers.

Sellers may also evaluate the purchase price, financing strength, requested concessions, inspection terms, closing date, contingencies, and the buyer’s overall ability to complete the transaction.

A well-prepared buyer with strong financing can still present a very competitive offer.

This is why I encourage buyers to complete their financing preparation before they begin seriously shopping for homes. When the right property comes along, we want to be ready to move.

Homes That Have Been Sitting May Offer Additional Opportunities

Investor activity is only one part of the story.

Another change in parts of the Phoenix Metro market is that some homes are taking longer to sell than they did during the extremely competitive markets of previous years.

That can give buyers additional negotiating opportunities.

A home may have been on the market longer because it was originally priced too high, did not present well online, needs cosmetic improvements, or is simply competing against several similar properties.

None of those things automatically mean there is something wrong with the house.

When I see a home that has been sitting on the market, I want to understand why. That information can help us determine whether there may be room to negotiate price, repairs, closing costs, seller concessions, or other contract terms.

Seller Concessions Can Matter

One advantage some buyers have today is that certain sellers are more willing to negotiate than they were a few years ago.

A seller concession means the seller agrees to contribute toward certain allowable buyer costs as part of the transaction.

Depending on the loan program and applicable lending guidelines, those funds may help with eligible closing costs or other permitted expenses.

Not every seller will agree to concessions, and the amount depends on the financing and the individual transaction. But it is something worth exploring when the circumstances make sense.

This is another reason today’s buying opportunity cannot be judged by one headline. The individual property, seller motivation, and current competition all matter.

Investor Activity Is Different From Neighborhood to Neighborhood

The Phoenix Metro area is a very large housing market, and investor activity is not the same everywhere.

A condo in Tempe may attract a very different group of buyers from a single-family home in Gilbert. An entry-level home in Chandler may face different competition from a higher-priced home in Ahwatukee.

Property condition matters too. A home that needs substantial repairs may naturally attract more investor interest than a move-in-ready home designed for an owner-occupant.

That is why I believe local knowledge is so important.

We need to understand the competition surrounding the specific home you are considering, not simply assume investors control the entire Phoenix market.

Less Investor Buying Does Not Mean Prices Will Automatically Fall

This is another important point for buyers.

Even though investor purchases have declined, the supply of more affordable homes is still limited in many areas.

That means buyers should not assume less investor competition automatically leads to lower home prices.

Homes that are priced correctly, located in desirable neighborhoods, and in good condition can still attract strong buyer interest.

For first-time buyers especially, waiting for the market to become dramatically easier may not produce the result you expect.

The better strategy is to understand what is available today and identify where the real opportunities are.

The Goal Is Not To Beat an Investor

I do not want buyers approaching every home as though they are competing against Wall Street.

The goal is much simpler.

We want to identify homes that fit your needs, determine what those homes are actually worth, understand the competition, and create an offer strategy that protects your interests while giving you a realistic opportunity to purchase the home.

Sometimes that means making a strong offer quickly.

Other times it means finding a property that has been overlooked and negotiating from a stronger position.

And sometimes the best decision is walking away and waiting for another opportunity.

What Does This Mean for Phoenix Metro Buyers?

If investor competition was one of the reasons you stopped looking for a home, I believe it may be time to take another look.

Investors remain active in the Phoenix Metro market, but their purchases have declined year over year. At the same time, buyers have more choices in certain parts of the market, some homes are taking longer to sell, and some sellers may be more willing to negotiate.

That combination can create opportunities for individual buyers that were much harder to find during the most competitive years of the market.

If you are thinking about buying in Ahwatukee, Chandler, Gilbert, Phoenix, or another East Valley community, I would be happy to help you understand what is happening in the neighborhoods and price range that matter most to you.

Contact me here and let’s start looking at your options.

Kip Wilkins is a licensed REALTOR® with Equities Real Estate, LLC. REALTOR® is a registered trademark of the National Association of REALTORS®. Equal Housing Opportunity. Market conditions and investor activity vary by community, neighborhood, property type, and price range. Information is deemed reliable but not guaranteed and should be independently verified.