Market Summary for the 2st Quarter of 2025
As we move into spring, the Phoenix housing market is showing signs of shifting, with both buyers and sellers needing to adjust their expectations as new trends emerge.
📊 Market Snapshot: April 1, 2025 vs April 1, 2024
- Active Listings: 24,990 (▲ 47% YoY | ▲ 4.4% MoM)
- Pending Listings: 5,278 (▲ 1.8% YoY | ▲ 5% MoM)
- Under Contract Listings: 9,113 (▲ 6.0% YoY | ▲ 7.6% MoM)
- Monthly Sales: 6,939 (▲ 2.6% YoY | ▲ 19% MoM)
- Avg. Sales Price per Sq. Ft.: $311.19 (▲ 5.8% YoY | ▼ 0.2% MoM)
With no difference in working days between March 2025 and March 2024, these numbers offer a clean comparison.
🏠 For Sellers:
Inventory continues to rise, which is highly unusual between March and April. Active listings are up nearly 50% year-over-year and are continuing to grow month over month, albeit at a slower pace. This means more competition, which puts pressure on sellers to price realistically and prepare homes to stand out.
The good news? Sales activity is picking up, and average price per square foot is still higher than last year. However, with more sellers than expected and luxury buyer sentiment cooling due to recent stock market volatility, pricing aggressively may no longer yield the results seen earlier this year.
🔑 For Buyers:
Interest rates have softened slightly to around 6.63%, and demand is improving. With more homes on the market, buyers are gaining leverage—especially in the outlying and more affordable areas. Inventory means options, and motivated sellers mean there’s opportunity for negotiation.
In fact, many new home builders are starting to cut base prices or offer increased concessions. While January and February saw the strongest new home closing numbers since 2006, the surge in supply is forcing builders like KB Home to take early action. Other big names, like Lennar and DR Horton, are also facing market pressure, as reflected in their stock prices
The market is still active, and pricing remains solid overall, but the tone is clearly shifting. Buyers are back—but with more power. Sellers can still succeed—but must be strategic.
