Phoenix Housing Market Update: Buyer Momentum Surges as Seller Conditions Decline in May 2025

Over the past week, the housing market has continued to decline for sellers, showing a worsening trend in overall conditions. Market momentum is shifting further in favor of buyers, and only a few areas are showing any signs of improvement for those looking to sell. This marks the second consecutive week of negative movement for sellers, with the deterioration slightly accelerating compared to the prior week.

Specifically, just five cities have shown improvement for sellers over the last month, two fewer than the week before. Meanwhile, 12 cities have shifted in favor of buyers. The Cromford Market Index (CMI), a key indicator of market strength, has declined by an average of 4.1%, down from the previous week's 3.2% drop. This signals a steeper and more widespread weakening trend. Cities like Chandler, Tempe, Gilbert, and Scottsdale are experiencing particularly sharp downturns.

The deterioration is most pronounced in mid-range and higher-priced markets, while more affordable areas show signs of relative strength. Buckeye and Avondale, for example, are leading the improvement on the lower end of the pricing spectrum, standing out as exceptions in an otherwise declining market. These cities are seeing minor gains, but not enough to reverse the overall downward momentum for sellers.

As it stands, only three cities can still be classified as seller's markets — and even those are considered weak. Eight cities fall into the balanced category, offering roughly equal opportunity for both buyers and sellers. The remaining six cities are now firmly buyer's markets. The trend remains clear: market conditions continue to slip out of sellers' favor, and unless this pattern reverses, buyers may find increasing leverage in the weeks ahead.

"Be sure you put your feet in the right place, then stand firm." 
- Abraham Lincoln 

Have a great week, everyone!