February 2025 Market Update

As of February 2025, the Phoenix real estate market is experiencing notable shifts influenced by various factors:

Home Prices and Sales:

• Price Trends: The median home price in Phoenix has increased by 6.7% year-over-year, reaching $460,000 in January 2025.
  
  
• Sales Activity: Homes are selling more slowly, with a median of 65 days on the market, up from 39 days the previous year.
  
  

Inventory and Market Conditions:

• Inventory Levels: The market is seeing a rise in inventory, with active listings increasing by nearly 39% from January 2024 to January 2025.
  
  
• Market Type: Greater Phoenix is currently a buyer's market, with approximately 4.7 months of supply, close to the national average of 5 months. 

Rental Market:

• Rental Prices: The average rent has decreased by 1.4% from the previous year, settling at $1,422 per month.

Mortgage Rates:

• Current Rates: Mortgage rates have declined to 6.87%, the lowest level of 2025, potentially encouraging more buyers to enter the market.

Market Outlook:

• Future Projections: Home prices in Phoenix are expected to rise steadily through 2025 and into early 2026, with a projected 3.1% increase from December 2024

In summary, the Phoenix real estate market in February 2025 is characterized by rising home prices, increased inventory, and a shift toward a buyer's market. While rental prices have slightly decreased, the overall market remains dynamic, with mortgage rates and inventory levels playing significant roles in shaping current trends.