As we head deeper into fall, the Phoenix real estate market continues its shift toward a more balanced environment, a welcome change for many after years of intense bidding wars. What was once a red-hot seller's market has cooled, offering new opportunities for buyers and requiring a more strategic approach for sellers. Here’s a closer look at what the Phoenix metro area real estate market is doing in October 2025 and what it means for you.
Key market trends for buyers and seller
Inventory and pricing
One of the most significant shifts is in inventory levels. The number of active listings has increased compared to last year, providing more options for buyers. While this has slowed the rapid price appreciation seen in previous years, prices are generally stabilizing rather than crashing.
Median prices: The median sales price remains relatively steady month-over-month, though some data shows a slight year-over-year decrease.
Price per square foot: This metric is holding steady, suggesting that while the market is cooling, property values are largely retaining their worth, especially for well-maintained homes.
Negotiating power: A more balanced market means more leverage for buyers, who are seeing concessions and more reasonable terms in negotiations.
Time on market and sales activity
Homes are taking longer to sell than they did in the frenzied market of a few years ago. This is great news for buyers who no longer need to rush into a decision, and it gives sellers more time to find the right offer.
Days on market: The average days on market has increased, giving buyers more time for due diligence.
Sales volume: Despite the increased time on market, overall sales volume has risen year-over-year. This indicates a healthy, active market, not a stagnant one.
Concessions: More than half of all home sales in the region included concessions during the first nine months of 2025, according to Cromford Market Index data.
Location, location, location
Market conditions vary significantly across the metro area. While the luxury market has its own pace, other segments show diverse trends.
Affordable vs. luxury: The luxury segment, with properties over $1 million, is seeing longer days on the market, offering more negotiation room. However, the affordable and mid-range segments are seeing steady demand.
Suburban growth: Areas like Buckeye, Glendale, and Mesa offer more affordable options and are experiencing strong growth, attracting first-time homebuyers.
New construction: Builders are actively working to increase inventory
A playbook for Phoenix buyers and sellers
For buyers: Your time to act is now
The shift toward a more buyer-friendly market presents a unique opportunity.
Be decisive, not desperate: With more inventory and less intense bidding wars, you can take your time. However, desirable homes that are well-priced still move quickly, so be prepared to act.
Leverage negotiation: Don't be afraid to negotiate for concessions or repairs. Over half of recent sales included them, so it's common practice.
Get pre-approved: A strong pre-approval letter signals to sellers that you are a serious and capable buyer, giving you an edge in negotiations.
For sellers: Strategy and patience are key
The days of over-pricing and expecting a frenzy of offers are over. A strategic approach is crucial for a successful sale.
Price realistically: Overpriced homes will sit on the market. Price your home competitively based on comparable sales in your neighborhood to attract serious buyers.
Enhance your appeal: Invest in professional staging and high-quality marketing. In a more competitive market, presentation is key to standing out.
Be patient and flexible: A longer time on the market is the new normal. Be prepared for negotiations and consider concessions to appeal to buyers.
The Bottom Line
The Phoenix metro real estate market in October 2025 is in a transitional phase. It is still an active market, but one that rewards preparation, strategy, and realism. For both buyers and sellers, understanding these shifts and adapting to them is the key to a successful transaction in the Valley of the Sun.
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