As we head into the second half of 2025, the Greater Phoenix housing market is showing clear signs of a cooling trend—and buyers and sellers alike should take note. Here's a breakdown of what’s happening in the market:
Inventory Is Up, But Buyer Demand Is Slipping
Active listings are up to 27,549, a significant increase from 20,834 this time last year and nearly double what they were two years ago.
Sales per month have dropped to 5,923, down from 7,253 last month and 6,262 a year ago.
The Cromford® Market Index, which reflects the balance between supply and demand, has declined to 73.7, indicating a firm shift toward a buyer’s market.
Homes Taking Longer to Sell
Homes are spending more time on the market, with Days on Market (Sales) up to 83 days, compared to 66 last year.
Days Inventory (excluding UCB listings) has risen to 124, from 93 one year ago.
Prices Are Softening
The average price per square foot for monthly sales is now $283.60, down from $294.32 just last month.
The active listing price per square foot is also down to $333.80, from $344.44 last month.
Monthly price appreciation has turned negative: -2.2%, compared to +2.1% this time last year.
Fewer Sellers Are Successful
The listing success rate has declined to 62.8%, down from 66.8% last month and 72.6% last year.
Pending sales and listings under contract are both trending down, reflecting reduced buyer activity.
What This Means for Sellers
Sellers may need to adjust pricing expectations and invest more in marketing or staging to attract buyers in today’s slower-moving market. With more competition and fewer successful sales, strategic pricing is more important than ever.
What This Means for Buyers
Buyers now have more inventory, more negotiating power, and less urgency than we’ve seen in years. While interest rates remain a factor, the softening prices and longer market times may offer unique opportunities—especially for those who’ve been waiting on the sidelines.
Final Thoughts
We are firmly in a market correction. While not a crash, the Phoenix real estate market is transitioning after years of seller dominance. Whether you're buying or selling, it's important to stay informed and work with a professional who understands how to navigate these shifting dynamics.
