Arizona’s real estate market is experiencing a notable shift, transitioning from the rapid growth of previous years to a more balanced environment. This change is characterized by stabilizing home prices, increased inventory, and evolving buyer-seller dynamics. Here’s an in-depth look at the current trends:
🏠 Home Prices and Sales Activity
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Statewide Trends: In April 2025, the median home sale price in Arizona was $441,900, reflecting a 2.8% decrease compared to the previous year. The average home value stands at $434,797, down 1.7% year-over-year.
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Sales Volume: Despite the price adjustments, home sales have increased, with 9,232 homes sold in April 2025, marking a 6.0% rise from the same period last year.
📦 Inventory and Market Supply
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Active Listings: The number of homes for sale in Arizona has grown significantly, reaching 46,890 listings in April 2025, a 25.0% increase year-over-year.
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New Listings: There were 12,246 newly listed homes in April, up 9.1% from the previous year, indicating a more robust supply entering the market.
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Months of Supply: The average months of supply is currently at 4 months, suggesting a shift towards a more balanced market.
⏱️ Market Dynamics
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Days on Market: Homes are spending more time on the market, with a median of 58 days in April 2025, an increase of 8 days compared to the previous year.
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Buyer Leverage: The increase in inventory and extended days on market have provided buyers with more options and negotiating power, leading to a more favorable environment for purchasers.
🌆 Regional Highlights
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Phoenix: The median sold price for single-family homes in Phoenix was $474,950 in April 2025, a 5.0% decrease from the previous year. Homes are taking longer to sell, with an average of 66 days on market, up from 56 days in April 2024.
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Scottsdale: The median sold price in Scottsdale was $1,176,500 in April 2025, a 2.0% decrease year-over-year. The average days on market stood at 79 days, slightly down from 81 days the previous year.
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Tucson: Tucson’s median sales price was $368,000 in April 2025, a 1.6% decrease from April 2024. Homes spent a median of 28 days on the market, an increase of 7 days year-over-year.
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Show Low (ZIP 85929): Contrasting the broader trend, Show Low experienced a significant 20.0% increase in median home prices, reaching $449,900 in April 2025.
🔮 Market Outlook
The Arizona housing market is moving towards equilibrium, with increased inventory and more moderate price movements. Buyers are finding improved conditions, with more choices and negotiating power, while sellers may need to adjust expectations and pricing strategies. The market’s trajectory will depend on factors such as interest rates, economic conditions, and regional demand variations.