Market Update March 3rd, 2025

The real estate market in Greater Phoenix has experienced a notable increase in the number of single-family detached homes available for sale compared to one year ago. Overall, there are 44% more listings on the market across all price ranges, indicating a significant expansion in housing inventory. However, this increase is not uniform across different price segments, with more substantial growth occurring at the lower end of the market while higher-end properties have seen a much smaller increase—or even a decline in availability.

When breaking down the data by price range, it becomes clear that the largest growth in inventory has occurred in more affordable housing. Homes priced under $350,000 have seen a dramatic 70% increase in available listings, while those in the $350,000 to $600,000 range have increased by 51%. In the mid-range market, homes priced between $600,000 and $1 million have grown by 38% in inventory. These numbers suggest that buyers looking for homes in these categories have significantly more options than they did a year ago.

In contrast, the growth in inventory diminishes as prices rise. Homes priced between $1 million and $3 million have increased by 27%, while those in the $3 million to $7.5 million range have seen a more modest 21% rise. The luxury market above $7.5 million stands out as the only category where inventory has actually declined, with 4% fewer homes available compared to last year. This suggests that demand for ultra-luxury properties may still be outpacing supply, keeping inventory levels relatively low.

Overall, the data reveals a clear trend: the lower the price range, the greater the growth in available inventory. This shift could be beneficial for buyers in the mid-to-lower price brackets, as increased supply may lead to more favorable purchasing conditions. However, for those in the high-end market, limited inventory suggests that competition among buyers remains strong. These trends highlight the importance of understanding price-specific market dynamics when buying or selling in Greater Phoenix!

 “Don’t count the days, make the days count.”
— Muhammad Ali

Have a great week everyone!