What’s Driving a 30% Inventory Surge in Phoenix’s Housing Market?

By Jason Penrose

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

What are the latest housing trends in the Phoenix housing market, and what predictions can we make for 2025? I’m here once more to share a real estate market update for the last 30 days. It’s interesting to note that what’s happening here in Phoenix reflects housing trends nationwide.

Market overview. Right now, 23,641 homes are on the market, compared to 18,149 homes last year. That’s a 30.2% increase in the number of homes available in our area, which gives buyers many options.

Listings under contract stand at 6,557 homes now versus 6,000 homes last year, reflecting a 9.2% increase. As for homes sold, we have 5,052 homes this year compared to 4,474 homes last year, which is a 12.9% increase.

Inventory levels went up from 3.6 months last year to 4.2 months this year, marking a 16.7% increase in the monthly supply. What does this mean? While we have more homes available now than last year, the number of homes on the market for sale is still lower than in previous years.

Market insights. More and more buyers are entering the market because interest rates have dropped below 7%. More homes are going under contract and more homes are selling. Now that we’re past the election, we expect this trend to continue.

The market is looking good next year. According to Housing Wire, we’re projecting that home prices could rise between 3% to 5% next year. This uptick in activity is a sign of a strong housing market in 2025.

It’s not just local trends, either. Nationwide, home sales are up 10%, showing that the excitement isn’t limited to our area.

If you have any questions about the real estate market—whether locally or nationally, don’t hesitate to reach out. You can give me a call at (602) 738-9943 or send an email to jason@thepenroseteam.com. I’m always here to help.