2025 Phoenix Housing Market Update: Inventory, Rates, & Expert Tips for Buyers/Sellers

By Ron Palmer Ron’s expertise has earned him a spot among the top 50 realtors in the Valley. Happily married for 38 years, Ron is a proud parent and grandparent and holds CDPE, CIAS, and CNE designations, reflecting his dedication to client success. Arizona’s Strongest Cash Offers. Skip the stress, showings, and open houses. Get a top-dollar guaranteed offer on your home today. Get Your Strongest Offer Have you noticed how unpredictable the Phoenix real estate market feels lately? It’s almost like we’re in The Twilight Zone—things are strange, and the usual rules don’t seem to apply. But don’t worry, we’re here to break it down for you and show you the opportunities that are hidden in all the uncertainty.Active listings are up, but demand is down. The market has shifted significantly, and the active listings in Phoenix have increased by 53% compared to last year. This means there are more homes to choose from, which is great news for buyers. However, demand has dropped by 18%, making the market slower and less competitive than before.While this might sound concerning, it’s actually creating a more balanced market. Buyers and sellers now have time to make thoughtful decisions without the pressure from previous years.More negotiating power for buyers. If you’ve been waiting for a less competitive market, now is the time to act. With more homes available, buyers have more choices and more negotiating power. Over 50% of active listings have had price reductions, and nearly half of recent sales included seller concessions. This gives buyers a chance to negotiate better deals than in previous years when bidding wars were common.“The market has shifted significantly, and active listings in Phoenix have increased by 53% compared to last year.”Sellers can still succeed with the right strategy. Sellers, there’s no need to panic—homes are still selling. In fact, 19% of homes listed in the past month sold in under two weeks. However, to stand out in a market with more options, you’ll need to price your home correctly, market it well, and make sure it looks its best from the very first day it’s listed.Even though the market is slowing down slightly, this isn’t a sign of disaster. It’s simply a chance to recalibrate and make smarter decisions, so there’s still plenty of room for sellers to succeed.How interest rates and tariffs are impacting the market. Interest rates are currently hovering just above 7%, and tariff talks are still in the air. While these factors can be unsettling, they’re keeping prices from soaring and preventing the competition from getting out of control. If interest rates drop later this year, demand could increase quickly.That’s why now is a good time to start strategizing before the market shifts again. With the right plan, both buyers and sellers can still succeed in this unpredictable market. If you’re unsure about your next steps, we’re here to help. Just send a message to customercare@soldwithresults.com and let’s talk strategy. Remember that even in the Twilight Zone, there’s always a way to find success. Arizona’s Strongest Cash Offers. Skip the stress, showings, and open houses. Get a top-dollar guaranteed offer on your home today. Get Your Strongest Offer What’s Your Home Really Worth?. Determine your home’s current market value, gain insights into your equity, and get real-time market data to help you track and grow your wealth. Sign Up Free Real Estate Newsletter. Get our latest Q&A, insights, and market updates to make better informed decisions. Subscribe Now