Across the nation, high home prices, elevated mortgage rates, and economic uncertainty have stalled the housing market. These trends are particularly pronounced in the West, where a defining theme is buyer hesitation. In these markets, many prospective buyers are delaying purchases, closely tracking price reductions, builder incentives, and quick move-in (QMI) opportunities.
According to data from NewHomeSource parent company Zonda, several major Western metros, including Phoenix, Las Vegas, Denver, Salt Lake City, and Seattle were categorized as average or underperforming in July.
Below is a snapshot of three of the top markets in the West – Phoenix, Las Vegas, and Riverside/San Bernardino – as well as the trends shaping these markets.
Phoenix
After years of rapid population and construction growth, affordability pressures are weighing on the Phoenix market. Sales activity in the market has slowed relative to recent years, but buyers today are more likely to encounter increased inventory when searching for a home.
Of the top 50 markets analyzed by Zonda, Phoenix recorded the second-highest level of quick move-in (QMI) homes per community in July. QMIs are properties under construction and ready for move in within 90 days. These homes can be attractive for buyers, as home builders are likely motivated to sell these homes and QMIs are the homes most likely to offer incentives.
Las Vegas
Weakness in the local tourism economy – a key driver of jobs and consumer confidence – in Las Vegas is partially contributing to slower housing demand in the Sin City. With fewer stable paychecks and less economic momentum, fewer shoppers are actively in the market.
The market’s elevated cancellation rate (17% in August 2025 vs. 13% in 2024) reflects this uncertainty, pointing to job loss and financial caution among would-be buyers. While overall sales are down nearly 25% compared to 2024, contract sales remain higher than in 2022 suggesting that those still actively shopping are serious and committed buyers.
Riverside/San Bernardino
Benefiting from its relative affordability, Riverside/San Bernadino has long drawn households priced out of other coastal markets within the Golden State. However, traffic levels are muted in the Inland Empire, with many would-be buyers cautious of elevated rates and prices.
Buyers in Riverside/San Bernardino are also more cautious than in recent years, with the market’s cancellation rate at its second-highest level since 2019 (14%). This is likely a reflection of affordability concerns and more contingent prospective buyers.
Bottom Line
While many Western markets are underperforming compared to historical levels, today’s environment offers opportunities for well-prepared buyers. Builders are increasingly tailoring incentives to meet buyer preferences and address affordability challenges.
For buyers who are flexible and ready to act, the current market could be one where patience and preparation pay off.
