Phoenix Real Estate Market Update: April 2025 Insights for Buyers and Sellers

As we navigate the dynamic real estate landscape in the Phoenix Area, understanding current market trends is crucial for both buyers and sellers. Here's a snapshot of the latest data to help you make informed decisions.

📊 Phoenix Market at a Glance (April 2025):

• Pending Ratio: 18% overall (20% under $500K)

• Average Days on Market: 76 days

• Sale-to-List Price Ratio: 95.7%–98.0%

• Inventory: 5 months supply

• Hottest price points: 350–450K

1. Market Dynamics and Pending Ratios

The overall market in Maricopa County shows a pending ratio of 18%, indicating a steady demand. Notably, the 0-500k segment has a slightly higher pending ratio of 20%, suggesting strong buyer interest in more affordable homes. Meanwhile, the luxury market above $1M has a lower pending ratio of 11%, reflecting a slower pace in high-end transactions.

It’s worth noting that specific areas like Chandler, Gilbert, and Scottsdale may show sharper variations, especially in mid-range and luxury pricing. Evaluating neighborhood-level data is crucial when making decisions.

2. Price Trends and Days on Market

The average days on market (DOM) for active listings is 76 days, with homes in the 500k-1M range moving slightly faster at 71 days. For sellers, pricing competitively is key, especially in the 1M+ segment where the DOM extends to 94 days. Across the board, homes are selling at approximately 95.7% to 98.0% of their original list prices, indicating that realistic pricing strategies are effective.

3. Inventory and Supply Insights

The total months' supply of inventory stands at 5 months, slightly higher than the 3-month average of 4.7 months. This suggests a balanced market with opportunities for both buyers and sellers. Segments like 350-400k and 400-450k have a tighter inventory, with supplies around 3.6 to 3.8 months, making them competitive for buyers.

Mortgage rates continue to hover around [X]% (update with current rate), which is keeping many buyers focused on affordability in the 0-500k range. Strategic financing advice is more important than ever.

4. Opportunities in the Market

For buyers, the 0-500k range offers a vibrant market with a good balance of inventory and demand. Sellers in this segment can benefit from the high pending ratio by ensuring their homes are market-ready to capture buyer interest quickly. On the other hand, sellers in the 1M+ range may need to be patient and consider strategic marketing to attract the right buyers.

5. Strategic Advice for Clients

• Buyers: Consider acting swiftly in competitive price ranges like 0-500k and 350-450k, where demand is high and inventory is lower. Getting pre-approved and being ready to move quickly can make a big difference.

• Sellers: Ensure your home is priced appropriately and presented well, particularly in the higher price segments, to reduce time on the market and achieve optimal sale prices. Professional staging and high-quality marketing can give you a crucial edge.

Ready to Take the Next Step?

Thinking about buying or selling? Let's connect for a custom strategy session based on your goals. Whether you're upgrading, downsizing, or just exploring your options, we're here to help you succeed in today's market.

Contact our team if you're ready to take the next step — local experts who know how to navigate every twist and turn in the Phoenix market.