Market Update
Welcome back to Williams Luxury Homes’ LUXE BLOG. As you know, we provide ongoing data about the overall Greater Phoenix real estate market, and today we’re diving into fresh stats and trends. The market is shifting, and there’s a lot to unpack.
Before we get into the numbers, keep in mind that there are really two different markets at play. The traditional real estate market is seeing fluctuations, but the luxury sector operates differently. Many ultra-high-end buyers in Paradise Valley and North Scottsdale purchase in cash, making them less affected by market shifts. Additionally, the niche of luxury high-rise condos remains strong, with several sought-after projects hitting the market. Demand is high, and competition is stiff in this exclusive space.
Now, get into the latest updates on home prices, sales trends, inventory, and mortgage rates. Shall we?
Also Read: Greater Phoenix Housing Market 2025 Sees More Home Listings
Home Prices & Sales Trends
The market is seeing steady price growth, with new listings on the rise and more options available across different price points.
- Median home price for Greater Phoenix: $490,000 (up 5.8% year-over-year)
- City of Phoenix median home price: $485,000 (up 5.4%)
- Scottsdale surged: Median price jumped 31.6% to $1,315,000
- Surprise, Goodyear, & Buckeye: Moderate price changes, with some areas seeing sales slow
- Pinal County: Growth driven by industrial development, with home prices rising 3% to $380,000
- Luxury high-rise condos: High demand with cash buyers dominating
With new job growth fueling demand, inventory is expanding. Homes priced under $300,000 saw a 19.7% increase in availability, while those in the $400,000 range surged 48.7%.
Also Read: Big Teravalis Update: AZ’s Largest Master-Planned Community
Market Stats & Mortgage Rates
While sales are up, pending transactions are dropping, and contract cancellations are hitting record highs.
- Sales up 4.1% year-over-year
- Pending sales dropped 34.5% from last year
- Homes sitting longer: Days on market increased to 77 days (from 68 last year)
- Cancellations rising: Nationally, 1 in 7 home sales fell through in January
- Mortgage rates improving: Down to 6.74%, helping buyer interest rebound
- More inventory: New listings up 12.1% compared to January 2024
Mortgage rate fluctuations are playing a significant role in buyer behavior. Recent declines could stimulate demand, but affordability remains a challenge.
Also Read: Greater Phoenix Real Estate Market News For Early March 2025
Greater Phoenix’s National Market Ranking
The region continues to be a strong housing market, earning a No. 8 ranking on Realtor.com’s 2025 top markets list. Factors contributing to its strength include:
- Economic resilience & job growth (Meta, Nestlé, TSMC expansion)
- More new home construction boosting inventory
- Military & international community growth
- Government-backed mortgage options helping younger buyers
Also Read: Montecito Grows With 508 New Homesites In Goodyear, Arizona
What’s Next for Buyers & Sellers?
As the spring selling season begins, more buyers may re-enter the market. New listings are outpacing last year’s numbers, and buyer demand is showing signs of picking up.
- More choices: Inventory expansion means less competition
- Luxury market stays hot: Paradise Valley, Carefree, & Scottsdale real estate leading appreciation
- Buyers gain negotiating power: High cancellation rates & rising inventory create leverage
- Sellers must price strategically: Overpricing could lead to longer market times
With mortgage rates dipping and more homes hitting the market, the coming months will determine if demand catches up with supply. Whether buying or selling, staying informed is key in this shifting landscape.
Also Read: Scottsdale Named As #1 American City For This Important Factor