The Phoenix real estate market is experiencing a noticeable evolution in 2025. After years of rapid appreciation and record-low inventory, we’re seeing a shift toward balance—and with it, a new kind of opportunity for luxury buyers and sellers. With rising inventory, slightly cooling prices, and strategic movement at the high end, now is the time for thoughtful decision-making and elevated execution.
A Luxury Market That’s Finding Its Rhythm
In May 2025, Arizona saw the most active listings since 2016, with nearly 27,000 homes on the market, and over 18,000 of those being in Phoenix. This 53% year-over-year increase is shifting the local landscape from a seller’s advantage to a more balanced environment. While buyers have more options, sellers are leaning into sharper pricing and refined presentation to stand out.
At the high end, properties priced over $1 million still command interest, but urgency is slowing. That said, total sales volume is trending upward month-over-month, suggesting that buyers are still engaging—but with discernment. In short, the Phoenix real estate market is still active; it’s just more selective.
At the high end, properties priced over $1 million still command interest, but urgency is slowing. That said, total sales volume is trending upward month-over-month, suggesting that buyers are still engaging—but with discernment. In short, the Phoenix real estate market is still active; it’s just more selective.
Pricing Trends: Slight Cooling Creates Strategic Entry Points
After several years of steep price growth, Phoenix home prices are leveling out. As of April, the median sale price was around $450,000, while the average price per square foot hovered near $299, down roughly 2.4% from this time last year. In the luxury sector, the correction is subtle but impactful. Premium listings that may have attracted multiple offers in 2022 are now experiencing longer days on market—currently averaging 78 days overall, with median days at 53.
This cooling isn’t a market crash—it’s a recalibration. For buyers, especially those entering the luxury space, this means a return to thoughtful negotiation, property comparisons, and time to act without the pressure of bidding wars. For sellers, pricing with precision and focusing on value-driven enhancements is key.
This cooling isn’t a market crash—it’s a recalibration. For buyers, especially those entering the luxury space, this means a return to thoughtful negotiation, property comparisons, and time to act without the pressure of bidding wars. For sellers, pricing with precision and focusing on value-driven enhancements is key.
Inventory Surge: More Choices, But Not Oversaturation
One of the defining themes of the 2025 Phoenix real estate market is the abundance of choice. A surge in listings is creating room for buyers to compare properties, evaluate quality, and prioritize location, lot orientation, and amenities. This increase doesn’t signal a flood or oversupply, but rather a normalization of options after years of tight inventory.
Interestingly, while homes under $500K have seen a boost in demand (up 11%), the upper-tier remains stable but competitive. Sellers in the $1M+ range are adjusting to this reality by leaning into presentation, staging, and strategic marketing, knowing that today’s luxury buyers are still active, just less impulsive.
Interestingly, while homes under $500K have seen a boost in demand (up 11%), the upper-tier remains stable but competitive. Sellers in the $1M+ range are adjusting to this reality by leaning into presentation, staging, and strategic marketing, knowing that today’s luxury buyers are still active, just less impulsive.
Pools, Patios, and Priorities: Outdoor Value Is Being Redefined
For years, having a pool in Phoenix was an automatic premium; however, that’s no longer a guarantee. In 2025, over half of all listings have a pool, making it a baseline rather than a bonus. What’s setting listings apart now are complete outdoor living experiences: think chef-grade kitchens, misted patios, resort-style landscaping, and seamless indoor-outdoor transitions.
Buyers are looking for functionality and design, not just aesthetics. A shallow splash pool won’t carry the same weight as an integrated wellness retreat with a sauna, lap lane, and smart lighting. In a luxury market, lifestyle is the differentiator.
Buyers are looking for functionality and design, not just aesthetics. A shallow splash pool won’t carry the same weight as an integrated wellness retreat with a sauna, lap lane, and smart lighting. In a luxury market, lifestyle is the differentiator.
Where Opportunity Is Taking Shape
While national headlines suggest rising interest rates and affordability concerns, Phoenix remains an appealing destination for high-net-worth individuals and remote professionals. Employers like Intel, Honeywell, and American Express continue to bolster the area’s job base, supporting long-term demand across housing sectors.
Central Phoenix and neighborhoods like Arcadia, Paradise Valley, and Desert Ridge are holding value especially well, due to their location, views, and build quality. Meanwhile, new luxury developments along Central Avenue and the East Valley are attracting interest from buyers prioritizing walkability and modern design.
This mix of stability and fresh development signals long-term strength, and the chance for buyers to enter now, before momentum regains full speed.
Central Phoenix and neighborhoods like Arcadia, Paradise Valley, and Desert Ridge are holding value especially well, due to their location, views, and build quality. Meanwhile, new luxury developments along Central Avenue and the East Valley are attracting interest from buyers prioritizing walkability and modern design.
This mix of stability and fresh development signals long-term strength, and the chance for buyers to enter now, before momentum regains full speed.
Advice for Sellers: Lead With Strategy, Not Just Style
For those listing in 2025, it’s not enough to rely on past market heat. Today’s sellers need to offer properties that feel both relevant and well-priced. Here’s what’s working:
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Professional staging and photography are non-negotiable. Buyers are visual, and listings need to stand out from the moment they’re discovered online.
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Accurate pricing reflects not just comps, but how your property measures up in features, finish level, and location.
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Thoughtful marketing, from custom websites to drone videography, helps luxury listings connect with high-intent buyers, many of whom are shopping remotely.
Working with an experienced real estate team like CITIEA, which understands the nuances of Phoenix’s micro-markets, can dramatically improve outcomes. Their insight into neighborhood trends, pricing dynamics, and buyer expectations ensures your property is positioned for maximum appeal and optimal results.
Advice for Buyers: Clarity Creates Leverage
Buyers are in a favorable position this year, especially those paying cash or who are already pre-approved. With more properties on the market and fewer aggressive bidding situations, it’s possible to secure a well-located, well-built home with meaningful negotiation room.
Focus on quality—construction, layout, and long-term livability matter more than ever. And be ready to move when the right home appears; while you have time to evaluate, well-positioned properties are still moving quickly.
Focus on quality—construction, layout, and long-term livability matter more than ever. And be ready to move when the right home appears; while you have time to evaluate, well-positioned properties are still moving quickly.
The Phoenix Outlook: Stability With Upside
Looking ahead, Phoenix is expected to remain one of the nation’s most resilient housing markets. The fundamentals—strong employment, steady in-migration, and climate appeal—haven’t changed. The difference now is that luxury buyers and sellers have the breathing room to make smart, informed moves.
Whether you're seeking an ultra-modern retreat in Arcadia or preparing to list a golf-course estate in North Scottsdale, this market rewards strategy and insight. Ultimately, the 2025 Phoenix real estate market isn’t about chasing trends—it’s about capturing long-term value.
Whether you're seeking an ultra-modern retreat in Arcadia or preparing to list a golf-course estate in North Scottsdale, this market rewards strategy and insight. Ultimately, the 2025 Phoenix real estate market isn’t about chasing trends—it’s about capturing long-term value.
Move With Confidence in the Phoenix Real Estate Market
The Phoenix real estate market in 2025 offers a rare combination of refinement and opportunity. With rising inventory, balanced pricing, and a return to thoughtful negotiations, both buyers and sellers have space to make smart, strategic decisions.
If you’re considering entering the market—whether buying or selling—partner with CITIEA. With deep knowledge of the Phoenix luxury landscape and a tailored, data-driven approach, CITIEA helps clients navigate today’s evolving market with clarity, confidence, and results that match the caliber of their goals.
If you’re considering entering the market—whether buying or selling—partner with CITIEA. With deep knowledge of the Phoenix luxury landscape and a tailored, data-driven approach, CITIEA helps clients navigate today’s evolving market with clarity, confidence, and results that match the caliber of their goals.
