What’s Happening in the Phoenix Real Estate Market?

By Jason Penrose

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

The Phoenix real estate market is undergoing noticeable changes compared to this same time last year. A closer look at the past 30 days reveals clear shifts in inventory levels, buyer activity, and pricing trends that are reshaping how both buyers and sellers approach the market. Here’s everything you need to know.

Listings and sales. As of now, there are 29,348 homes listed for sale in the Phoenix area. This marks a 40.8% increase in inventory compared to 20,832 homes available during the same period last year. Meanwhile, pending sales have slightly declined. There are 8,217 homes currently under contract, which is down 1.5% from 8,342 this time last year.

Homes sold & months of supply. The number of closed sales also saw a modest decrease. In the past month, 7,060 homes were sold in the Phoenix area, compared to 7,414 during the same timeframe last year. That represents a 4.8% drop in year-over-year sales. The monthly supply of inventory has grown from 2.4 months to 3.7 months, a 54% increase that signals rising supply amid slower buyer demand.

What does this mean for you? With more listings entering the market and fewer buyers actively competing, home prices in Phoenix are beginning to soften. Buyers are starting to return, though not at the pace seen in past years. They are being more selective but are motivated by improved affordability and increased choices.

For sellers, the growing inventory offers more possibilities when it comes to making a move. In previous years, many homeowners held off on selling because they couldn’t find a replacement property. That landscape is changing. With more options now available, it’s becoming easier for move-up or downsizing buyers to take action.

Interest rates are currently fluctuating between the high sixes and low sevens. While not as favorable as they were six months ago, they are still lower than the peaks we saw a year ago. This slight improvement is encouraging more activity and moving the market toward a more balanced, normalized environment.

If you’re considering buying or selling in the Phoenix area or just want to better understand how current trends may impact your plans, I would be happy 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.