News Summary
The Phoenix metropolitan area is witnessing a shift in its housing dynamics, with housing units increasing by 16.5% over the past decade, coinciding with a population growth of 15.5%. Experts believe this stabilization may bring relief to renters and homebuyers. However, a decline in home sellers, frustrated by buyer demands, signifies a changing market landscape. Recent data shows that most homes are selling below their listing prices, signaling a buyer’s market, yet certain Valley cities have returned to seller-favored conditions. Analysts predict potential price declines in the coming months.
Arizona’s housing landscape is experiencing a significant shift, as new data reveals that housing units in the Phoenix metropolitan area have increased by 16.5% over the past decade. In contrast, the population growth in the Valley has surged by 15.5% during the same period. This change marks a notable reversal from pre-pandemic trends, where population growth consistently outpaced housing supply by up to 4 percentage points.
With Phoenix ranking third nationally among major metropolitan areas for the smallest gap between housing supply and population growth, experts suggest that these trends may lead to a potential stabilization in rent and home prices in Arizona. If the current trajectory continues, residents could see some relief in housing costs moving forward.
However, the dynamics within the housing market are shifting. The number of home sellers in the Phoenix area is declining, as many sellers are growing frustrated with buyer demands. Reports indicate that approximately 35% to 40% of sellers, represented by real estate professionals, are canceling their listings if buyers do not meet their asking prices. In the past few months, around 30% of homes listed for sale in the Phoenix area were canceled, according to the Cromford Report.
Since late last year, the market has gradually transitioned toward buyers. This shift has been fueled by rising listings and growing uncertainty among buyers regarding the economy and interest rates. Price drops and concessions from sellers have become increasingly common. Although the number of home listings in the Valley increased last year, the current count is down by approximately 3,000 since May.
For instance, Brandie Henderson, a seller in the area, faced challenges when attempting to sell her home that was initially listed at its appraised value of $875,000. After lowering the price multiple times to $785,000, she still found no success in selling her property. During the first nine months of 2025, more than half of all home sales in the Phoenix region included seller concessions, underscoring the shifting market landscape.
During August 2025, data revealed that 77% of Phoenix-area homes sold for less than the listing price, with single-family homes closing at an average of 7% below asking price. Home sales in Phoenix decreased from 6,099 in July to 5,824 in August, indicating a contraction in buyer activity.
The median home price in Metro Phoenix remained stable at $440,000 in August, showing little change from the previous month and year. Despite the overall buyer-friendly environment in Phoenix, seven Valley cities, including Fountain Hills and Scottsdale, have transitioned back into sellers’ markets. In contrast, closed sales in the Valley saw an increase of over double the national rate, with a 4.6% rise in August compared to July.
Moreover, home inventory supply in the Valley increased substantially by 23.5%, reaching 4.2 months in August, a significant change from previous years. The average number of days homes spent on the market increased from 67 to 78 days as well. Meanwhile, the housing affordability index (HAI) remained consistent at 70 for August.
The median sales price for homes in Metro Phoenix remains flat at $475,000 as of August. New listings saw a decrease of just under 10% in both monthly and annual comparisons. Notably, closed sales in Goodyear recorded a robust increase of 27.9% year-over-year, while Surprise experienced an 18.8% surge in new listings driven by major employers in the northwest Valley.
Looking ahead, analysts predict that home prices in metro Phoenix may decline within the next three to six months, with a drop in year-over-year home sales prices expected. Despite the current buyer’s market, experts caution that this situation may not last if interest rates decrease and inventory continues to dwindle.
Deeper Dive: News & Info About This Topic
- AzCentral: Sellers Pull Home Listings in Phoenix Area
- Axios: Phoenix Home Listings Stale Over 60 Days
- AZ Free News: Phoenix Housing Market Enters Correction Phase
- KTAR: Phoenix Home Prices to Drop
- Fox 10 Phoenix: Phoenix Home Delistings Increase
- Wikipedia: Real Estate
- Google Search: Phoenix housing market
- Google Scholar: Phoenix real estate
- Encyclopedia Britannica: Real Estate
- Google News: Phoenix housing
Author: STAFF HERE PHOENIX 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.
