2025 Year-End Phoenix Housing Market Update for Buyers & Sellers

Are all the housing headlines making it hard to know what’s actually happening? If you’ve been hearing mixed news about rates, inventory, or even talk about unemployment and a possible recession, it can be tough to sort out what’s real.

Over the last 30 days, I’ve compared the current numbers to this time last year, and the differences show what’s truly happening in the housing market.

Inventory: More homes are available. Right now, we have 27,088 homes on the market for sale. Last year at this time, we had 23,853. That’s a 13.5% increase in available homes. This rise in inventory shows that more sellers are coming onto the market.

Pending listings: Buyer activity has increased. Pending listings are also up. We have 6,946 pending homes now versus 6,303 last year. That’s a 10.2% increase in homes going under contract. More pending listings tell me buyers are active and making decisions.

Homes sold: Slight increase in completed sales. We sold 5,531 homes this year compared to 5,345 last year. That’s a 3.4% increase in homes sold. Sales aren’t jumping dramatically, but they are still rising.

Month supply: Inventory growing. The month supply of inventory went from four months last year to 4.4 months this year. That’s a 10% increase in supply. This increase ties directly to the higher number of homes coming on the market.

What’s behind these changes? Rates are now in the lower sixes, and there’s talk about the Fed continuing to cut rates in the future. That is bringing more buyers into the marketplace. At the same time, we’re seeing more sellers list their homes.

There are also headlines about jobs, rising unemployment, and a possible recession in 2026, but even with that news, the housing market is still moving.

If you’re thinking about buying or selling a home, please reach out to me at (602) 738-9943 or email jason@thepenroseteam.com. Feel free to share this with friends and family. I’d be happy to speak with them as well and offer guidance on today’s marketplace.