Metro Phoenix Housing Market Gains Momentum in Early 2025

The Metro Phoenix housing market is showing signs of renewed strength as the number of closed home sales increased for the second consecutive month. According to recent data released by Phoenix REALTORS®, home sales from January to April 2025 rose 4.1% year-over-year, offering a positive outlook for both buyers and sellers despite lingering economic concerns.

“With all the questions about the economy, it’s reassuring to see closings rise again,” said Christy Walker, board president of Phoenix REALTORS®. “New listings are also up again, which gives us a diverse range of prices for homebuyers.”

Inventory Grows as Pending Sales Decline

New home listings in the region were up a significant 15.4% compared to the same period in 2024. However, pending sales dropped 7%, which experts attribute to ongoing buyer uncertainty. The result is a healthy inventory across Greater Phoenix, offering more choices for motivated buyers.

Meanwhile, median home prices continued to climb, albeit at a more modest pace. The median single-family home price in Metro Phoenix has reached $485,000, up 2.1% from $475,000 in 2024.

“The affordability index this year is still high, but holding at 67, the same as last year,” said Walker. “It’s an encouraging statistic because it says wage increases are catching up with housing prices.”

Shifting Buyer Behavior and Market Timing

In previous years, pending home sales would typically dip in the third quarter. This year, however, the decline began as early as February and has continued since. Still, new listings are climbing to their highest levels since mid-2022, a clear sign that sellers are confident and ready to enter the market.

While closed sales increased in April, the number of transactions remains the second-lowest April total since 2008, reflecting continued market caution. However, median sales prices are approaching the peaks seen in spring 2022, hinting at a broader recovery in property values.

The affordability index, currently at 67, indicates that only 67% of households earn enough to afford a median-priced home in Greater Phoenix. While lower than the 12-month average of 69, the figure remains stable and demonstrates incremental wage growth among buyers.

City-by-City Breakdown

Phoenix

Phoenix reflected overall regional trends. From January to April 2025:

• Closed sales rose 2.1%
• Median home price increased to $495,000
• New listings jumped 13.4%
• Pending sales dropped 7.9%

Scottsdale

Scottsdale’s luxury market stood out for its price appreciation:

• Median home price surged 8.6% to $1.23 million
• New listings rose modestly by 9.5%
• Pending sales dropped 10.5%

Goodyear

Goodyear posted some of the most impressive metrics in the county:

• Closed sales soared 43.2%
• Pending sales up 26.1%
• New listings increased 36.4%
• Median price dipped 1% to $479,990

Chandler

Chandler saw solid inventory growth with mixed results elsewhere:

• New listings climbed 25.6%
• Closed sales rose 5.5%
• Pending sales fell 5.6%
• Median price dipped 0.9% to $560,000

Peoria

Peoria’s performance remained steady:

• Closed sales increased 8%
• New listings up 21.9%
• Pending sales declined 5%
• Median home price rose slightly by 0.5% to $535,276

Conclusion

While economic uncertainty is reshaping buyer behavior and softening some leading indicators like pending sales, Metro Phoenix’s housing market is building momentum with rising closed sales, new inventory, and sustained pricing strength. Goodyear and Scottsdale are proving to be standout performers, while cities like Chandler and Peoria maintain moderate, stable growth.

As the second half of 2025 approaches, eyes will remain on affordability, interest rates, and how wage growth continues to balance housing costs across the region.

Source:
Phoenix REALTORS®. (2025, May). Metro Phoenix housing market gains momentum as sales increase.