Phoenix Housing Market Update – June 2025
- Ready2Sell
- Jun 10
- 2 min read
A Market Shift Favoring Buyers
Phoenix has swung into a buyer’s market, with buyers gaining more leverage than sellers in many neighborhoods.
Seller surplus: In the Phoenix metro, active listings now significantly outnumber buyers—part of a nationwide trend where sellers exceed buyers by 33.7%, the largest such gap on record.
Price corrections: Market indices show a 3.5% drop in home prices in June, following a 4.1% decline in May.
As one local analyst puts it, this isn’t the 2008 crash—it’s a measured reset. Well‑priced and prepared homes still attract buyers, but overpriced listings are stagnating.
Key Metrics at a Glance (June 2025)
Metric | June 2025 Value | Change YoY / MoM |
Median Sale Price | ~$450,000 | –0.66% YoY (April) |
Average Home Value (Zillow) | $422,080 | –2.6% YoY |
Active Listings | ~30,000 homes | Highest since 2016 |
Homes Selling Below List | ~57% of homes (May) | Buyers negotiating more |
Interest Rate Environment
Rates remain high, hovering around 7% for the typical 30-year fixed mortgage — up slightly from earlier this year.
While not pricing everyone out, these rates are causing buyer hesitancy and prompting longer listing times.
Silver lining: New construction incentives—like buydowns to ~5%—are enticing buyers to lock in deals.
Despite stability concerns, experts stress this isn’t a crash—it's a healthy correction. If rates ease later in 2025, buyer momentum could surge .
Why It Matters for Homeowners
Sellers: Realistic pricing, staging, and flexibility (e.g., closing help) are now essential. Homes priced right are still selling comparably well.
Buyers: Now is a ripe time to negotiate—expect more listings to choose from and fewer bidding wars. First‑time and move-up buyers can secure more favorable terms.
Investors: Rising inventory may offer opportunities, but watch for broad price trends and interest rate fluctuations.
What to Watch in Coming Months
Mortgage Rates – Any dip toward 6% could reignite buyer interest.
Inventory Levels – Continued high supply keeps markets soft; a pullback could shift dynamics.
Monsoon Season – Typically boosts local economic activity, possibly influencing buyer sentiment later in the year.
Final Summary
📉 Prices: Declining modestly (~3% month-over-month).
🏠 Market: Leaning toward buyers; careful pricing key for sellers.
💰 Rates: Elevated (~7%), but buydowns from builders are a bright spot.
Whether you're buying, selling, or holding, Phoenix's current reset presents real opportunities—especially if you're ready with a clear strategy. Need help navigating the market? Contact Ready2Sell, whether you are looking to buy or sell your Arizona Home we can help.
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