Phoenix Real Estate Market Update: June 2025 – A Shift in Favor of Buyers

As of June 2025, the Phoenix housing market is experiencing notable changes that are tilting the scales toward buyers. Here's an overview of the latest trends:zillow.com+3linkedin.com+3redfin.com+3

Market Cooling and Price Adjustments

• Home Values: The average home value in Phoenix stands at $422,080, marking a 2.6% decrease over the past year.

• Sales Trends: In April 2025, the median sale price was $450,000, a slight decline of 0.66% compared to the previous year. zillow.com+1fox10phoenix.com+1redfin.com

Inventory and Buyer Leverage

• Increased Listings: The number of homes for sale in Phoenix rose to 8,006 in May 2025, a 4% increase from April.

• Negotiation Power: Approximately 57% of homes sold in May were below the asking price, indicating greater negotiation opportunities for buyers. youtube.com+5rocket.com+5houzeo.com+5

Interest Rates and Market Sentiment

• Buyer Hesitation: High interest rates are contributing to buyer caution, leading to longer time-on-market for listings.

• Market Outlook: Experts suggest that while the market is cooling, it's not indicative of a crash but rather a stabilization period. fox10phoenix.combhg.com

Opportunities in the Current Market

• For Buyers: The current environment offers increased options and potential for favorable purchase terms.

• For Sellers: While the market is more competitive, strategic pricing and home presentation can still attract motivated buyers.