Tempe, AZ Housing Market Report

The Tempe housing market is currently transitioning into a more balanced environment that increasingly favors buyers. As of December 2025, the median home value stands at $459,437, reflecting a year-over-year decrease of 3.47 percent. This cooling trend is further evidenced by a significant 9.29 percent increase in active inventory, totaling 21,137 available units across the broader metro area. With more options on the market and homes taking an average of 70 days to sell—eight days longer than the previous year—buyers now possess greater leverage in negotiations than they have had in recent years.

Price trends over the last six months indicate a period of stabilization following a slight dip in the late summer and early fall. After hitting a low of $457,230 in October, values have seen a modest month-over-month recovery through November and December. This suggests that while the annual growth rate remains negative, the market may be finding a new floor. The sale-to-list ratio remains strong at 0.99, indicating that while buyers have more time to decide, sellers are still successfully closing deals very close to their asking prices, provided the homes are priced accurately for current conditions.

Looking ahead, the Tempe market presents a strategic window for both parties. For buyers, the combination of increased inventory and slower market velocity provides an opportunity to be selective and potentially negotiate repairs or closing cost credits. For sellers, the recent uptick in median values over the final quarter of 2025 suggests that demand remains resilient despite higher inventory levels. Success for sellers in 2026 will depend heavily on presentation and realistic pricing, as the days of immediate bidding wars have largely been replaced by a more deliberate pace of trade.