How the Housing Market Is Changing in 2025

By Jason Penrose

Jason has been licensed since 1999, and is currently one of the top 20 agents in Arizona for homes sold.

Are you thinking about buying or selling your home in 2025? Now is the perfect time to take action. The real estate market is changing, and it’s important to stay informed about what’s happening. Let’s take a look at the key changes and how they could affect you:

Home inventory is up by 32%. There are 32% more homes on the market than this time last year. This means buyers have more choices. Right now, there are 22,835 active homes for sale, compared to 17,263 last year. If you’ve been waiting for more options, now is the time to find the perfect home.

Homes are selling faster. Homes are selling faster this year. Five thousand one hundred thirty-four homes sold this year, compared to 4,631 last year, showing a 10.8% increase in sales. Buyers are eager to lock in mortgage rates before they go up. If you’ve been thinking about selling, now could be a great time to do so.

Interest rates are rising. One of the biggest factors in today’s market is rising mortgage rates. Buyers are aware that waiting could mean higher monthly payments or being priced out of the market. Sellers are also concerned, as rising rates could lower home prices. If you’re selling, now is the time to make your move before the market shifts.

Why are more sellers listing their homes? Sellers are deciding to list their homes now for several reasons. With the holidays behind us, many feel it’s a good time to sell. Also, rising mortgage rates have some sellers worried that waiting too long could reduce their home’s value. They want to take advantage of the equity they have.

Could people move here from California? Another factor to consider is the potential for people moving here from California. Ongoing challenges, like wildfires, could cause more people to relocate. Our market might see an increase in demand, which could put pressure on the housing market. While we don’t know for sure how much this will affect things, it’s definitely something to keep in mind.

Whether you’re buying or selling, now is a great time to act. Buyers have a larger selection of homes, but you’ll need to move quickly before mortgage rates rise further. Sellers, this is your opportunity to maximize your home’s value before the market changes. If you have any questions or are ready to make a move, give me a call at (602) 738-9943.