Greater Phoenix Housing Market Update – August 2025
The Greater Phoenix housing market continues to shift as we head into fall 2025. Looking at the latest Cromford Report data, a few clear themes stand out: higher inventory, longer market times, and price pressure on sellers. Here’s a closer look at what the numbers tell us.
Inventory on the Rise
Active Listings: 26,736 (nearly flat from last month, but up 29% from last year and 83% higher than two years ago).
Active Listings excl. UCB: 23,587 – meaning more homes are fully available, not tied up under contract.
Buyers have far more choices today compared to recent years, which naturally puts pressure on sellers to price competitively.
Sales Activity is Steady
Sales per Month: 6,002 – up slightly from last month (5,885) and well above last year (5,733).
Sales per Year: 72,840 – basically unchanged from recent months, showing that while inventory is climbing, demand is holding steady.
This balance between supply and demand suggests we’re not seeing a crash, but rather a more normalized market.
Days on Market Are Stretching
Days on Market (Sales): 85 (up from 71 last year and just 58 two years ago).
Days on Market (Active): 97 – nearly unchanged month-to-month, but well above historical lows.
Homes are taking longer to sell, a clear sign that buyers have more negotiating power.
Prices Under Pressure
Active Listings $/SF: $335.46 – slightly higher than last year but trending down from the summer peak.
Monthly Sales $/SF: $281.93 – down from $300 earlier this year.
Appreciation: -3.0% this month – a sharp reversal compared to last year’s +2.9%.
Median Sales Price: $441,990 – holding fairly steady year-over-year, suggesting sellers are adjusting expectations to meet buyers.
Overall, the market is cooling, and sellers who don’t adapt risk longer days on market or price cuts.
Market Index Signals Buyer Advantage
The Cromford® Market Index is at 80.3 – well below last year’s 98.7 and dramatically down from 155.2 two years ago.
100+ = seller’s market
Below 90 = buyer’s advantage
Today’s market is tilting toward buyers, especially in higher price ranges where inventory has surged.
What This Means for You
Buyers: With more inventory and longer market times, you have stronger negotiating leverage than we’ve seen in years. This is a great time to shop with patience and negotiate favorable terms.
Sellers: Pricing strategy is everything right now. Homes that are positioned correctly still sell, but overpricing can lead to extended time on market and lower success rates (currently 67%, down from 78% two years ago).
✅ Bottom Line: Phoenix real estate is moving away from the red-hot seller’s market of the past few years and toward a more balanced—if not slightly buyer-friendly—environment. Whether you’re buying or selling, success comes down to smart strategy and knowing the numbers.
