The 2025 Market

The start of 2025 has seen a surge in home listings across the country, including Greater Phoenix real estate market. But what does this mean for buyers and sellers? Inventory is up, creating more choices. Sales are steady but adjusting to market conditions. While pricing expectations are shifting, motivated sellers and strategic buyers can find great opportunities.

More Homes. More Options.

New listings are increasing, giving buyers a wider selection. High mortgage rates are still a factor, but sellers willing to negotiate are finding success. The market is dynamic, and adaptability is key.

• New for-sale listings jumped 7.9% over last year.
• Pending sales adjusting, down 8.1%.
• Median listing prices climbed 5.7%. Sellers are testing the market.
• Typical home sells for 2% under list. Negotiation is happening.
• Homes sit on market 73 days. More time to explore options.
• Active listings up 24.6% year over year. More choices available.
• Buyers waiting for the right deal. Market movement is strategic.

Sellers who price competitively and offer concessions are getting results. Buyers who act decisively can secure great properties.

Greater Phoenix: A Balanced Market Emerging

For the first time in years, Greater Phoenix is seeing a shift. Buyers have more negotiating power, but well-priced homes are still moving. The key? Strategic pricing and realistic expectations.

• CMI at 88.5. Approaching balance.
• Demand index: 76.8. Buyers being selective.
• Supply index: 86.8. More homes, more opportunity.
• Median days on market: 38. Patience pays off.
• Active listings increasing steadily. Choices for buyers.
• Listings under contract showing slight uptick. Some buyers making moves.

Sellers who understand today’s buyers will succeed. Buyers who stay engaged will find value. The market is always changing. Stay ready.

Also Read: Housing Market Trends Shaping Early 2025 In Greater Phoenix

Mortgage Rates & Affordability: The Key Factor

Affordability is a major focus. Mortgage rates remain a consideration, but buyers and sellers are adjusting expectations. Market stability is taking shape.

• Current mortgage rates: 7.05%. Watching for shifts.
• Median housing payment: $2,784. Up slightly from last year.
• Rates over 7% require smart budgeting. Buyers are planning carefully.
• A drop to 6.5%? Big impact. Will bring more buyers in.
• Confidence is growing. Buyers are prepared to act when rates shift.

Flexibility is key. Those who stay informed and ready can benefit when conditions align.

Also Read: A Very Important Update For Halo Vista, TSMC, And NorthPark

Housing Growth: Balancing Luxury & Affordability

New homes are being built, adding supply. The challenge? Ensuring a mix of affordable and luxury options.

• 48,000 new units since 2024. Expanding options.
• Only 4,625 classified as affordable. More needed.
• Market adapting to changing needs. Developers watching demand.
• 65% of rentals owned by individuals. Small landlords remain vital.
• More inventory = more choices. Great for buyers.
• Zoning laws influence affordability. Adjustments could help.
• Luxury developments remain prevalent. Demand is shifting.

With the right policies, affordability can improve. The market is adjusting, and opportunities exist.

What’s Next? A Market of Opportunity

Spring is approaching, bringing new activity. Whether buying or selling, informed decisions matter most.

• Contracts increasing. Buyer confidence rising.
• Seller success rate: 69%. Strategy is key.
• More listings expected. Competition ahead.
• Negotiation is normal. Deals are happening.
• Mortgage rates are the watch factor. Timing matters.
• Buyers gaining confidence. Strategic moves pay off.
• Sellers adapting quickly. Success follows flexibility.

Greater Phoenix is shifting. Buyers have power. Sellers who adjust will thrive. The market is full of potential. Stay engaged, stay informed, and make the right move.

Also Read: Future Of Arizona’s Growth Depends On Solving Labor Shortages