February 2025 Housing Market Update

By Jason Penrose

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

The real estate market has seen big changes over the past month. Inventory has increased, pending sales have dipped, and more homes have sold compared to last year. Mortgage rates continue to play a major role in these shifts, affecting both buyers and sellers. Here’s a closer look at the latest numbers as of February 2025.

Market trends and key numbers. Currently, 25,572 homes are on the market, a 36.5% increase from 18,953 in February 2024. The number of homes under contract has dropped by 2.8%, with 7,839 pending compared to 8,063 last year. Meanwhile, 4,697 homes have sold, marking a 5.6% increase from 4,447 last year.

The monthly supply of inventory has also risen by 33.3%, going from 3.6 months to 4.8 months. Buyers now have more options, but sellers are facing greater competition.

What’s driving these changes? Mortgage rates are a major factor in these shifts. A 30-year fixed mortgage is around 7%, causing some buyers to delay purchases. Some can’t qualify at these rates, while others are holding onto their current lower-rate mortgages.

If inventory keeps growing, home prices may start to decline as sellers compete for buyers. Now could be the right time to make a move, whether you’re buying or selling. If you have questions or need guidance, don’t hesitate to reach out. You can call me at 480-738-9943 or send an email to jason@thepenroseteam.com. I look forward to hearing from you.