News Summary
Home prices in the metro Phoenix area are forecasted to decline over the next few months, marking a pivotal change in the housing market. Analysts indicate that competition among buyers may rise as awareness of dropping prices spreads. Additionally, a lawsuit regarding foreclosure fraud and new government efforts to address homelessness highlight the evolving real estate landscape in the area. With new home collections launching at competitive prices, the dynamics of the local housing market are set to change amid ongoing legal and economic developments.
PHOENIX – Home prices in the metro Phoenix area are predicted to decline over the next three to six months, according to local analysts. This forecast highlights a noticeable drop in year-over-year home sales prices, marking a pivotal change in the housing market landscape. Analysts note that this development will be the primary housing story in the region in the upcoming months.
Tina Tamboer, a senior analyst for The Cromford Report, points out that the real estate market in metro Phoenix has been a buyer’s market since November 2024. However, this trend is expected to shift. Tamboer cautions that a true buyer’s market cannot coincide with the lowest possible home prices. As awareness of declining market prices increases, competition among buyers could heat up, leading to potential rises in home prices again. Many prospective homeowners are currently seeking the “perfect home at the perfect price,” which could alter the dynamics of the market.
In addition to the anticipated changes in home prices, several notable events and developments are occurring within the region. Arizona Attorney General Kris Mayes has initiated a lawsuit against Edward Trenton Albarracin and Gretchen Marie Zamjahn over serious allegations of foreclosure fraud. This case involves claims against over 50 controlled entities that the defendants allegedly used to mislead homeowners. The Attorney General’s office suspects that hundreds of victims, including many elderly homeowners, could be impacted by these actions.
In a related development, a judge has granted an emergency receivership over the assets belonging to Albarracin and Zamjahn due to concerns about their financial stability following health issues experienced by Albarracin. The legal action aims to provide restitution for the victims impacted by the alleged fraud and to secure a permanent injunction forbidding the defendants from participating in real estate transactions within Arizona in the future.
Local government officials are also working on addressing homelessness in the area. Phoenix Vice Mayor Ann O’Brien is actively proposing various housing solutions to tackle this critical issue.
On the housing front, new home collections have recently gone on sale in a Maricopa community, with prices starting in the $200,000s for homes sized between 814 and 1,232 square feet. Additionally, a church near South Mountain in Phoenix was recently sold for nearly $3 million, illustrating ongoing interest in diverse real estate investments in the region. Construction has also commenced on a new apartment complex in a Gilbert mixed-use development, further expanding housing options.
Meanwhile, Zillow’s recent policy change regarding the listing of homes has triggered a federal antitrust lawsuit involving Compass, which could significantly impact home-selling practices in Arizona and beyond. Under this new policy, homes marketed outside the Multiple Listing Service (MLS) for over one day will not feature on popular platforms such as Zillow and Trulia, creating a disparity with Compass’s marketing strategy. The Arizona area’s largest MLS already permits “Coming Soon” listings to be marketed for up to 30 days, but compliance with Zillow’s new rule is expected by September 30, 2025. A study indicates that homes sold off-MLS in the Phoenix area typically sold for $4,200 less than those listed on the MLS within the 2023-2024 timeframe.
Critics of Zillow’s new policy argue that it limits seller choice, whereas supporters assert that it promotes fairness and transparency for buyers. The outcome of the lawsuit may have repercussions not only in Arizona but could also influence real estate transaction practices across the country.
As these developments unfold, both the housing market and broader economic landscape in metro Phoenix are poised for significant changes, presenting ongoing challenges and opportunities for buyers, sellers, and policymakers alike.
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Additional Resources
- KTAR: Phoenix Home Prices to Drop
- AZ Big Media: Legal Battle Between Compass and Zillow
- AZ Family: Arizona AG Sues Over Real Estate Scam
- New York Times: $1 Million Homes
- Google Search: Phoenix real estate news
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
