Phoenix, AZ
Housing Market
Phoenix's housing market is dynamic, with home prices and demand constantly shifting. Houzeo's housing market report monitors these fluctuations, providing real-time insights into Phoenix's supply and demand trends. Our report equips you with all the information you need to make well-informed decisions.
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Buy or SellPhoenix Housing Market Overview
The housing market in Phoenix, AZ offers a host of options, from historic downtown neighborhoods to master-planned communities, that cater to various lifestyles and budgets. The growing metropolis' real estate market has shown steady growth in recent months. Phoenix's median home price has increased by 3.5% YoY to $470,225. Additionally, 1,336 homes were sold, a 7.6% increase YoY. Properties typically remain on the market for 59 days, a 9-day increase from this time in 2024. Over the years, Phoenix has maintained its popularity due to its warm climate, expanding job market, and relatively affordable housing compared to West Coast cities.
The growth in transaction volume despite the slower market pace suggests sustained demand for houses in Phoenix. The city's real estate market remains a vital component of Arizona's economy. Known for its year-round sunshine, outdoor recreation opportunities, and growing tech and healthcare sectors, Phoenix attracts residents from higher-cost markets like California, Washington, and the Northeast. For sellers, the steady price appreciation and increased sales volume create favorable conditions. Meanwhile, buyers benefit from expanded inventory and moderating competition compared to previous years.
The growth in transaction volume despite the slower market pace suggests sustained demand for houses in Phoenix. The city's real estate market remains a vital component of Arizona's economy. Known for its year-round sunshine, outdoor recreation opportunities, and growing tech and healthcare sectors, Phoenix attracts residents from higher-cost markets like California, Washington, and the Northeast. For sellers, the steady price appreciation and increased sales volume create favorable conditions. Meanwhile, buyers benefit from expanded inventory and moderating competition compared to previous years.
Median Sale Price
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Phoenix Housing Supply
Phoenix presents attractive opportunities for real estate investors due to its consistent growth and strong rental market. The number of homes for sale in Phoenix, AZ has increased to 5,224---a substantial 32.7% YoY rise. Newly listings have also increased by 10.4% YoY, with 2,042 new properties entering the market. Phoenix's housing supply currently stands at 3.9 months citywide, up 0.7 months from the previous year. While this still points to a seller's market, the expanding inventory suggests movement toward more balanced conditions.
Phoenix's housing supply experiences seasonal variations, with winter typically seeing listing activity when snowbirds visit and consider permanent relocation. The city's appeal stems from its combination of urban amenities and desert lifestyle, with stunning mountain views and abundant sunshine. Popular areas like Arcadia, Desert Ridge, and Ahwatukee provide diverse and affordable inventory options. The growing employment centers and new housing developments in Phoenix, AZ further drive the growth of the city's housing market.
Phoenix's housing supply experiences seasonal variations, with winter typically seeing listing activity when snowbirds visit and consider permanent relocation. The city's appeal stems from its combination of urban amenities and desert lifestyle, with stunning mountain views and abundant sunshine. Popular areas like Arcadia, Desert Ridge, and Ahwatukee provide diverse and affordable inventory options. The growing employment centers and new housing developments in Phoenix, AZ further drive the growth of the city's housing market.
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Phoenix Housing Demand
Phoenix's real estate market shows signs of balanced competition. 17.5% of Phoenix homes sell above their list price, a slight increase of 0.8 percentage points from last year. On the other hand, 33.4% of listings have seen price drops, up from 29.5% YoY. The sale-to-list price ratio has decreased marginally to 98%, which means that sellers get about 2% below their asking prices on average.
These metrics speak of a market that maintains competitive dynamics in certain segments, while showing signs of normalization in others. As a home seller in Phoenix, strategic pricing has become increasingly important, given the growing percentage of listings that require price reductions. For buyers, the rising inventory and relatively modest percentage of above-list sales create favorable negotiating conditions, particularly on properties that linger on the market. The sale-to-list ratio suggests that appropriately-priced homes continue to command near-asking prices, highlighting the importance of proper valuation in this evolving market.
These metrics speak of a market that maintains competitive dynamics in certain segments, while showing signs of normalization in others. As a home seller in Phoenix, strategic pricing has become increasingly important, given the growing percentage of listings that require price reductions. For buyers, the rising inventory and relatively modest percentage of above-list sales create favorable negotiating conditions, particularly on properties that linger on the market. The sale-to-list ratio suggests that appropriately-priced homes continue to command near-asking prices, highlighting the importance of proper valuation in this evolving market.
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Strong
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Balanced
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Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Phoenix Market: When to Buy or Sell?
Phoenix's housing market has historically shown clear seasonal patterns, with activity varying throughout the year based on weather and visitor trends. Like the Arizona housing market, the Phoenix real estate market experiences fluctuations tied to seasonal population changes. The current 3.9 months of supply approaches but remains below the balanced conditions of the US housing market (5 to 6 months). This means that sellers still maintain a slight advantage despite expanding inventory.
For sellers, the increasing number of houses for sale in Phoenix, Arizona and steady price appreciation create favorable conditions for listing. For buyers, the substantially expanded inventory and growing months of supply provide more options and leverage, especially during summer months when the market typically slows due to extreme heat. With supply approaching the balanced threshold, buyers can take more time to find the right home in Phoenix.
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Frequently Asked Questions
How have Phoenix house prices changed over the past year?
Over the past year, the median home price in Phoenix, AZ has seen steady growth. It has now reached $470,225, reflecting a 3.5% increase YoY. This moderate appreciation rate indicates a normalizing market after the significant increases of previous years. Consider using our free home value estimator to assess your property's current market value to set the best asking price.
What are Phoenix housing market predictions for 2025?
The Phoenix housing market is expected to maintain steady growth throughout 2025, with the potential for moderate price increases as the market balances. With the supply period approaching balanced market conditions, dramatic price swings are unlikely. The city's population growth, diversifying economy, and relative affordability should continue to support consistent demand.
What's the average home price in Phoenix?
Phoenix home prices vary based on neighborhood, property type, and size. While the median home price stands at $470,225, condos generally average $350,000. Luxury properties in areas like Paradise Valley or North Scottsdale can exceed $1 million. If you're looking for options across different price points, you can browse homes for sale in Phoenix.
Is this a good time to buy a home in Phoenix, AZ?
Current market conditions in Phoenix present favorable opportunities for potential buyers. The increase in Phoenix housing inventory and months of supply provide more options than in recent years. While prices continue to appreciate moderately, the expanded selection and modest competition allow for more deliberate decision-making. You can check current housing market trends in Phoenix to time your investment.
How is the housing market in Phoenix, AZ right now?
The Phoenix, AZ housing market shows moderate price appreciation, coupled with increasing sales volumes. At 3.9 months of supply, the market leans in favor of sellers, but is approaching balance. The modest percentage of houses in Phoenix selling above the asking price signals reasonable competition, as opposed to the bidding wars seen in recent years.
When will the Phoenix housing market shift?
In line with Phoenix housing market predictions, the market is already showing signs of shifting towards balance, with increasing inventory and months of supply. This normalization is likely to continue through 2025, though Phoenix's population growth and economic diversification should prevent dramatic corrections. The seasonal nature of Phoenix's market will continue to create windows of opportunity throughout the year.
How to buy a home in Phoenix, AZ?
The process of purchasing a house in Phoenix should begin with establishing a clear budget and securing mortgage pre-approval. Buyers should then search for homes for sale in Phoenix. Make sure you consider factors like commute times, school districts, and proximity to amenities when you evaluate your options.
How can I list my home for sale in Phoenix?
You can list your home for sale with a Flat Fee MLS Arizona listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in Phoenix?
The average mortgage rate for buyers in Phoenix currently fluctuates between 6% and 6.81%, consistent with national trends. Actual rates depend on market conditions and the borrower's credit score. Always check current rates with multiple lenders before you apply for a loan.
What is the cost of living in Phoenix, Arizona?
The cost of living in Phoenix, AZ is approximately 3% higher than the national average, but significantly lower than many West Coast cities. Housing costs are about 17% above the national average. Other expenses like food and transportation tend to be higher, while healthcare and utility costs are generally in line with national averages. The absence of state income tax in Arizona provides additional financial advantages for residents.
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