Arizona
Housing Market
The landscape of Arizona’s housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Arizona. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationArizona Housing Market Overview
Home prices in Arizona have increased by 4.9% YoY as of January 2025. This constant growth in home prices reflects the strength of the housing market. Currently, Arizona’s median home price is $454,300. The number of homes sold increased by 5.8% YoY.
You can also check market competitiveness through the median days on the market. Homes in AZ now spend 69 days on the market before going under contract. Collectively, these metrics indicate changes in the Arizona housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check market competitiveness through the median days on the market. Homes in AZ now spend 69 days on the market before going under contract. Collectively, these metrics indicate changes in the Arizona housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: The current real estate market in Arizona is perfect for you. Home sales surged by 5.8%, with 6,191 homes sold this January. This means more options for you to explore.
- If You’re a Seller: Your home will take longer to sell. Homes for sale in AZ are staying on the market for 69 days, up by 9 days from last year. So, you must set competitive prices to attract buyers.
Arizona Housing Supply
As new construction ramps up and mortgage rates stabilize, the Arizona housing supply is set to grow. Experts predict moderate inventory gains in 2025, particularly if interest rates hit 6%. In January 2025, the number of homes for sale in AZ rose by 22% YoY, bringing the total to 41,487 available properties. The Arizona market is balanced with 5 months of supply. Fewer months indicate a seller’s market, and more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: The increased number of homes for sale gives you an advantage. The growing inventory will stabilize the house prices in Arizona. Also, with 5 months of supply, Arizona home buyers won't face extreme competition.
- If You’re a Seller: You must act fast and sell your home before more homes hit the Arizona real estate market. Rising inventory could lower demand and lead to fewer offers from buyers. To attract buyers, focus on staging and marketing your home.
Arizona Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, almost 12.1% of homes in Arizona sold above the list price. Price drops increased slightly from last year, with 30.3% of homes experiencing price drops. The 97.7% sale-to-list price suggests fewer bidding wars and more price flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
In January 2025, almost 12.1% of homes in Arizona sold above the list price. Price drops increased slightly from last year, with 30.3% of homes experiencing price drops. The 97.7% sale-to-list price suggests fewer bidding wars and more price flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
- If You’re a Buyer: The Arizona housing market is in your favor, offering better deals. With 30.3% of homes seeing price drops, you can expect fewer bidding wars and improved affordability as an Arizona home buyer.
- If You’re a Seller: You'll need patience, as only 12.1% of homes sell above the list. You may experience high demand and more bidding wars for homes during summer. The Arizona real estate market currently favors buyers with less demand and more negotiation power.
Is It a Buyers or Sellers Market in Arizona?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Is It a Buyers or Sellers Market in Arizona?
As of January 2025, buyers have more leverage in Arizona’s real estate market as the total homes for sale has increased by 22% YoY. Additionally, the median days on the market, currently at 69 days, also favors buyers.
The current mortgage rate of 6.9% may reduce buying power. However, a 16.7% rise in new home listings could attract new home buyers to Arizona. These trends vary significantly within Arizona’s diverse real estate markets.
Arizona Housing Market Insights
The housing market in Arizona is less competitive compared to the nationwide market. Though home prices in Arizona are rising constantly, the growth rate is average. The median home price in Arizona ($454,300) is only slightly above the national median price of $418,489. Currently, 41,487 homes for sale are available in the Copper State.
Housing markets like Sedona and Williams have cooled off due to low competition. Homes in such cities spend an average of 64-82 days on the market and sell for about 2% below their list price. However, Arizona real estate market predictions suggest continued growth in some regions as the market adjusts to economic factors.
Overall, the Arizona housing market favors home buyers. If you’re buying a property in Arizona, you must also check for moving expenses and HOA fees.
Housing markets like Sedona and Williams have cooled off due to low competition. Homes in such cities spend an average of 64-82 days on the market and sell for about 2% below their list price. However, Arizona real estate market predictions suggest continued growth in some regions as the market adjusts to economic factors.
Overall, the Arizona housing market favors home buyers. If you’re buying a property in Arizona, you must also check for moving expenses and HOA fees.
Nationwide Migration Trends
Arizona attracted significant inbound migration during the peak moving season of winter 2024-2025. Over 10,000 residents searched for in-state homes from November 24 to January 25. Many new homebuyers arrived from New York, California, and Illinois. The robust job market and affordable living costs draw families to the Arizona market. Cities like Coolidge, Gilbert, and Phoenix welcome the most new residents.
This migration pattern reflects the broader trends in the cost of living index. Arizona’s index of 107.2 is slightly higher than the national median.
This migration pattern reflects the broader trends in the cost of living index. Arizona’s index of 107.2 is slightly higher than the national median.
Frequently Asked Questions
When will the housing market crash in Arizona?
As per Arizona housing market trends, it’s implausible that the market will crash. In fact, experts predict that home prices in Arizona will grow along with the housing demand. You can check your home’s fair market value with our free home value estimator. It will help you decide on a price range for your home.
How is the housing market in Arizona?
Despite the increasing mortgage rate, the state’s housing market landscape is still robust. Homes for sale in Arizona are in high demand. Statewide prices rose 2.3% YoY in January 2025. Markets like Atlanta and Gainesville saw a significant increase in home buyers from other metro cities.
Which city has the cheapest housing market in Arizona?
If you choose to move to Arizona from expensive places like New York or California, you will pay 40% to 45% less to buy or rent a house. Yuma ($269k) and Casa Grande ($339k) have the lowest median sale prices and offer the cheapest homes in Arizona. You can also check the cheapest places to live in Arizona.
Should I wait for some time before buying houses in Arizona?
As a buyer, you can get a fair deal with stable prices and growing homes for sale in AZ. The average cost of homes is $454k. If you’re buying an Arizona house, first get a mortgage pre-approval. You will also need to budget for a down payment of at least 10%.
How can I list my home for sale in Arizona?
You can list your home for sale in Arizona on the MLS using flat-fee services. First, find a Flat Fee MLS listing company in Arizona that can help you save on traditional Realtor fees. You can save at least 3% on listing agent commissions with Houzeo.
What are the average Arizona housing market mortgage rates?
The average mortgage rate for buyers in the Arizona real estate market fluctuates between 6.13% and 6.88%. When you apply for a mortgage, always check your credit score and current mortgage rates with lenders.
How does the Arizona housing market compare to the national market?
The Arizona housing market is outperforming the national market, with more substantial price growth and demand due to a robust job market and affordable living expenses. The cost of living in Arizona is only 7.2% higher than the US average, attracting more people to buy properties and settle in Arizona.
Is now a good time to buy or sell a home in Arizona?
You must check for the current trends in housing prices and inventory in your city. Arizona real estate market sellers can benefit from high demand and rising prices. However, if the mortgage rates are stable and months of supply are more than 6 months, that’s the best time to buy a house in Arizona.
How have home prices in Arizona changed over the past years?
Arizona median home prices have continued to rise over the past years, driven by high demand. The median house prices in Arizona have increased at an average growth rate of 4.9%, with some regions seeing double-digit percentage growth. You can also check your home’s fair market value with our free home value estimator and track the changes in its value.
What is the AZ housing market forecast for 2025?
The Arizona housing market is expected to stabilize in 2025, with slower price growth and rising mortgage rates. The number of new homes for sale in Arizona will increase enough to stabilize the price growth, and the supply is expected to meet the demand of buyers.
Houzeo Corp. holds real estate brokerage licenses in Alabama (License No. 000157023 - 0) and Texas (License No. 9013396)
TREC: Info About Brokerage Services, Consumer Protection Notice.
MAKING HOME BUYING AND SELLING EASY!
Copyright ©2025 Houzeo Corp. All rights reserved.