In this post, we’re going to highlight the numbers you need to know about the Maricopa County real estate market, what it means if you’re thinking about buying or selling, and where to get help moving toward your real estate goals this year.
What’s Happening in the Maricopa County Real Estate Market?
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There were 7,164 total sales, which is up 5% for the month and up 4% for the year.
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The total number of homes available for sale was 25,893, which is up 4.7% compared to last month and 52.6% compared to last year. This is the highest inventory since March 2016!
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Average sales price was $588,159, which is down 2.3% compared to this time last year and down 5.5% compared to last month.
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Average days’ on market was 78, which is up 9 days compared to this time last year.
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There is currently 3.61 months of supply, or the length of time it would take for all the houses on the market to sell. This is up 46% compared to last year.
Phoenix metro is solidly in a market that favors buyers, but it’s struggling to gain traction due to high interest rates and high prices. Half of all closed transactions last month had some form of concessions paid by the Sellers to the Buyers to be used for closing costs, rate buy downs, etc. The average sales price dropped over 5% in just one month, and is unlikely to be reversed in the next 4 or 5 months. According to The Cromford Report, “ Supply is now a little higher than normal while demand is far below normal. This is not a healthy combination and market theory postulates that prices will fall while the condition persists. It is more likely that the downtrend continues, at least until we enter the fourth quarter. ”
What Does This Mean for Phoenix Homeowners and Sellers?
Prices are dropping as the market balances and as we enter a market that favors buyers. This does not mean that prices are crashing. However, Sellers need to price their homes for where the market is going to be, not based on where it was a few months (or years!) ago. The market is moving, so your price needs to move, too.
Be prepared to pay for some of the Buyer’s closing costs and “buying down the rate” in the form of concessions. Last month, 50% of all closed transactions had some form of concessions paid to the Buyer from the Seller.
Since Buyers have so many choices of available homes on the market, make sure your home is “show ready.” Homes with the least amount of work (cosmetic or otherwise) sell the quickest and for the most money.
Don’t fall for offers from investors – these are often WAY below market value. Investors typically pay 25% to 30% below the market value of a home.
Interested in selling? Get your FREE Home Value Report here. We can show you our proven strategies to get 4% more for your home than the average Phoenix real estate agent, so reach out for a free consultation!
What Does This Mean for Phoenix Home Buyers?
Buyers still have lots of choice and growing bargaining power, especially in the outlying and less expensive areas. If the seller is realistic about market conditions (i.e. pricing, repairs, concessions, etc.), buyers should be able to secure a good deal. If the seller is unrealistic about market conditions, there is no harm in walking away to find another suitable property.
So, at this point, we can’t expect prices to drop dramatically, but they are dropping as Buyers have more power and negotiation. However, interest rates and affordability are the biggest hurdles right now. If you find the right house, negotiate with the Seller to help buy down the rate in the form of concessions. Make sure you find a real estate agent that knows how to negotiate for your best interest!
Interested in buying? Sign up for our property search app here.
Conclusion
The bottom line is this: the market continues to balance out, with an advantage for Buyers due to the number of homes available, increased Seller concessions offered to Buyers, and decreased demand.
Our market is rapidly evolving as the data presents new changes daily; by the time you’re reading this, the numbers will have changed. So, to get the most up-to-date information, reach out to us today.
Lianne: 602-463-1730 | Jason: 602-909-0673 | team@therfgaz.com
Sources:
- Arizona Regional Multiple Listing Service (ARMLS) statistics: https://armls.com/statistics - ARMLS® COPYRIGHT 2025
- The Cromford Report: https://cromfordreport.com/
- Tamboer Consulting LLC