Is the Phoenix Real Estate Market Going To Crash 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.

Concerns about the housing market are rising as recent headlines suggest a possible downturn. An article from Newsweek claimed the Phoenix market is plunging, and a report from Redfin stated there are 500,000 more homes for sale than buyers available. These reports have raised fears that the market could be heading toward another crash like the one in 2007 or 2008. So are we heading towards a market collapse?

Positive sign. While it is impossible to predict the future with complete certainty, I can say that what we are seeing right now is not a collapse. Instead, the market is shifting back toward balance. Inventory is increasing, and homes are still selling. Buyers are active, and homes continue to move. This is a positive sign. Having a healthy level of inventory means more choices for buyers and more opportunities for sellers.

Balanced conditions. This is one of the best times to make a move. Balanced conditions allow for thoughtful decision-making, and most clients appreciate the flexibility that comes with more inventory and fair pricing. For those considering buying or selling, the current environment offers strong opportunities.

For many people, it still makes more financial sense to own rather than rent. A mortgage can often be equal to or less than monthly rent, and it allows homeowners to build equity over time.

If you have questions about the current market or know someone who is thinking about buying or selling, I am here to help. You can contact me at (602) 738-9943 or send an email to jason@thepenroseteam.com. I look forward to hearing from you.