Phoenix, AZ Housing Market Report

The Phoenix-Mesa-Chandler housing market is currently undergoing a period of stabilization and correction as we conclude 2025. With a median home value of $402,796, the market has seen a year-over-year decline of 4.04%. This shift is largely driven by a significant 9.29% increase in active inventory, which now stands at 21,137 units. The rise in available homes, coupled with a median of 70 days on market—an eight-day increase from last year—indicates that the frenetic pace of previous years has cooled, transitioning the region into a market that increasingly favors buyers.

Price trends over the last six months suggest that the market may be finding its floor. After a steady decline from July through November, December saw a slight uptick in the median home value, rising from $402,343 to $402,796. This marginal increase suggests that while the annual trend is down, demand remains resilient enough to prevent a total price collapse. Sellers are becoming more realistic, as evidenced by a sale-to-list ratio of 0.99, meaning most homes are selling for nearly their full asking price, though they are taking longer to do so.

The outlook for the Phoenix metro area remains cautiously optimistic for long-term investors but requires patience from sellers. For buyers, the current environment offers more choices and less competition than in recent years, providing a rare window to negotiate without the pressure of immediate bidding wars. Sellers should be prepared for longer holding times and must ensure their properties are priced competitively to stand out against the growing inventory. As the market balances, the slight month-over-month recovery in December will be a key metric to watch heading into early 2026.