Phoenix Housing Market Update – October 2025: Rising Inventory, Steady Prices, and a Cooling Market Shift
If you’ve been following the Phoenix housing market, you’ve likely noticed a few key trends—inventory is rising, prices are holding, and buyer activity is steady despite seasonal slowdowns. Let’s dive into the latest Cromford® Report data (October 30, 2025) to see where the Greater Phoenix real estate market is heading as we move into the end of the year.
1. Active Listings Continue to Rise Across Phoenix Metro
Active listings jumped to 28,763 homes, up from 27,670 last month and 24,117 one year ago.
That’s a 19% year-over-year increase, signaling that more sellers are testing the market—a common trend as mortgage rates stabilize and homeowners regain confidence.
Active Listings per Square Foot: $350.55 (up from $339.95 last month)
Months of Supply: 4.5 months (compared to 3.8 months last year)
Takeaway: The market is gradually shifting toward balance. Buyers have more options, and sellers are competing on pricing and presentation.
2. Prices Hold Steady Despite Inventory Growth
Even with more homes available, home prices in Phoenix remain resilient.
Average Sale Price (Monthly): $601,341 (up from $581,170 in September)
Median Sale Price (Monthly): $450,000 (unchanged from last year)
Monthly Sales $/SF: $295.21 (up from $285.99 last month)
These numbers show that demand remains strong, especially for well-priced homes in desirable areas such as Goodyear, Peoria, and North Phoenix.
3. Sales Volume Holds Steady
October saw 5,693 sales per month, slightly up from 5,490 in September—a 3.7% increase month-over-month.
Total annual sales hit 73,469, reflecting a modest gain compared to last year’s 70,583.
Translation: Even as rates hover around higher levels, buyers are still active, particularly in move-in-ready and renovated homes.
4. Homes Are Taking Longer to Sell
The average days on market for sold listings is now 85 days, compared to 72 days last year.
Active listings are sitting around 97 days on average.
This indicates buyer caution and a more deliberate decision-making process, typical for a market transitioning from a seller’s market to neutral territory.
5. Appreciation Bounces Back
One of the most notable metrics this month is monthly appreciation, which surged to +1.6%, a healthy rebound from just +0.2% last month.
That’s a positive sign for homeowners and investors watching home values in Phoenix, Goodyear, and Peoria, suggesting stability heading into 2026.
6. Cromford® Market Index Shows Cooling Momentum
The Cromford® Market Index dropped slightly to 78.4, down from 80.6 in September.
For context, a balanced market sits around 100, so Phoenix remains a mild buyer’s market overall.
However, conditions vary by neighborhood—luxury markets like North Peoria and Verrado remain competitive, while affordable segments are showing more price sensitivity.
What This Means for Buyers and Sellers in Phoenix
Buyers: You have more choices and room to negotiate. Look for homes that have been sitting on the market for 60+ days—those sellers may be more flexible.
Sellers: Pricing strategy is everything. Homes priced right and move-in-ready are still selling within a reasonable time frame.
Investors: Stabilizing appreciation and rising rental demand make this a promising time to secure long-term assets.
Final Thoughts: Phoenix Market Remains Resilient
While the market is cooling from last year’s frenzy, the Phoenix metro housing market continues to show steady demand and price strength. With more balanced conditions on the horizon, 2026 could bring the most equitable housing market we’ve seen in years.
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