Phoenix, Arizona Real Estate Stats and Facts

1. Home prices in August 2025 were down 0.43% from last year
2. The city has seen an increase of nearly 2 million residents in the last 25 years
3. There were 18,701 houses for sale in the Phoenix-Mesa-Chandler metro area in Q2 2025
4. Listing volume ran 15% above the previous year
5. Closed deals increased by almost 1%
6. The median sale-to-list price ratio dropped to 98%
7. Phoenix had a month’s supply of 4.4 in July 2025
8. 59.6% of home sales were under the list price
9. Recent data shows houses sell after 62 days on the market

Decreasing Home Prices: Trouble or Order?

Home prices in Phoenix, Arizona, were down 0.43% in August 2025 compared to last year. Is it still a competitive market? Somewhat. The median price sat at $448,000, and most houses received an average of two offers.

 

These figures are part of a story of a very dynamic market, one that is continually adjusting to shifts in supply, demand, and affordability. No, the year-over-year dip in prices does not necessarily mean trouble, especially if we look at how the city has changed through the years.

A Populous City With Many Benefits

Phoenix is undeniably one of the most desirable destinations in the US because it promises an affordable cost of living and a strong quality of life. It ranks as the fifth-largest city in the country, with 4.8 million residents across the metro area. That is nearly two million more people than 25 years ago. The city was and is influential!

 

This steady population growth is a key driver behind ongoing real estate market trends. It is primarily thanks to the region’s geography; unlike many major cities, Phoenix has an openness that allows for steady expansion and business growth across sectors. The space, opportunities, and lifestyle draw people in.

Highest Inventory Since 2017

Remote workers flocked to Phoenix for its advantages during the pandemic, causing a dramatic surge in the city’s local housing market. Home prices shot up as supply tightened, but as interest rates rose and demand normalized, a market correction began.

 

By the second quarter of 2025, inventory in the Phoenix-Mesa-Chandler metro reached its highest level since 2017, with 18,701 homes for sale. The jump translated to more options and better negotiating power for buyers. On the other hand, sellers had to become more strategic in pricing, presentation, and incentives.

Q1 and Q2 Listing Volume

Looking back to the first quarter of 2025, we can see that new listings surged 17% year-over-year, marking the most substantial increase since 2019. As Q2 progressed, listing activity stayed robust, running about 15% higher than the previous year.

 

Interestingly, the rate of active listing cancellations has remained consistent with historical averages, just 8% in March, down from 9% the year before. Rather than pulling out of the market altogether, many sellers chose to list for both sale and rent or adjusted timing based on market signals and personal goals if they do not need to sell my house fast Phoenix.

Slight Increase in Closed Sales

In May 2025, the area defied national housing trends. While many markets in the US saw declines in sales activity, Phoenix recorded a 1% increase in closed transactions, even though pending sales dipped by 7.1%.

 

Some dubbed the environment a “buyer’s market” as it gave buyers an excellent opportunity to make offers with confidence and negotiate favorable terms. However, other figures proved otherwise.

A Balanced Real Estate Market

Phoenix has actually been finding its equilibrium. The median sale-to-list price ratio, a measure of how close houses sell to their asking price, has eased from above 100% to around 98%. This might sound like a small shift, but it has a big impact.

 

Yes, buyers have space to conduct inspections, consider options, and take their time, but sellers can also plan their next move. The dynamic is now healthier for both sides. The stabilization in Phoenix real estate statistics highlights the local market’s maturity.

Months Supply of Homes for Sale

By July 2025, Phoenix’s months supply, the number of active single-family detached (SFD) houses listed for sale divided by the number sold in that month, stood at 4.4 months. This figure emphasizes the direction the city is heading.

 

A supply of four to six months typically signals a balanced market. For buyers, this means more choice and less urgency to rush into offers. It is still a viable time to list for sellers, but patience and planning are essential.

Selling Under List Price

As of Q3 2025, 59.6% of sales in Phoenix were below the list price, while 15.6% were above it. These percentages are another indicator of a market rebalancing after years of overheated activity.

The prevalence of the below-list sales is encouraging for buyers. One might find opportunities to purchase a home at a fair or even favorable price.

 

Sellers, then, must keep in mind that houses that start too high tend to linger. They might end up selling for less than they would have if priced appropriately from the start.

Stretching Days 

In October 2025, houses in Phoenix are spending an average of 62 days on the market. That is longer than last year, though down a bit from the previous month. It suggests that activity fluctuates within a narrow, predictable range.

 

This extended time on the market provides buyers with breathing room to compare properties and make informed decisions and reminds sellers of the importance of marketing and timing.

 

The trend does not mean demand is fading — it simply reflects a less frenzied marketplace compared to the pandemic era.

Should You Invest in Phoenix, Arizona?

The Phoenix real estate market stats reveal an evolution. Firstly, prices are slightly down, but stability has returned. Secondly, inventory levels are the highest in nearly a decade, giving buyers more leverage. Lastly, closed sales are inching up, and the overall months of supply point to a sustainable market.

So, where do all these facts leave potential buyers and sellers?

Those searching for appreciation over the next several years can view the current conditions as a healthy entry point. Homebuyers can make the most of the options and competition, and sellers can practice adaptability by aligning their expectations with reality.

 

Ultimately, the above Phoenix, Arizona, real estate market trends show that the city has gone through highs and cool-downs and is now landing somewhere in between.