The Road Ahead for 2025: Real Estate Outlook

As we step into 2025, the Greater Phoenix housing market offers cautious optimism. With stabilizing demand, increasing inventory, and steady pricing, the year ahead presents both challenges and opportunities for buyers, sellers, and investors.

Stabilizing Demand

Recent data shows demand finding its footing:

• November sales were 11% higher year-over-year, outperforming typical seasonal trends.
• Maricopa County transactions grew 10.4% year-over-year, with both new and re-sale homes showing strength.

Though demand remains below historical norms, the upward trend in the Cromford® Demand Index (now at 77, up from 73.1 in September) points to resilience heading into 2025.

More Choices for Buyers

Active listings surged 35% year-over-year in 2024, peaking at 22,000 in November. This provides buyers with more options, but sellers face rising competition, especially in mainstream markets. Seasonal patterns suggest a slight inventory dip early in 2025.

Price Stability

Median prices remain steady, with notable growth in re-sales:

• Overall median sales price: $450,000, up 2.5% year-over-year.
• Re-sale median price: $458,500, up 2.6% annually.
• Luxury markets remain a bright spot, propping up prices as the broader market sees limited pressure for increases.

2025 Key Takeaways

• Buyers: Increased inventory and steady prices offer more opportunities with less competition.
• Sellers: Strategic pricing and marketing will be essential in a more balanced market.
• Investors: Rising demand for re-sales and a stabilizing market create potential growth opportunities.

Mortgage rates and economic trends will be pivotal for 2025. Whether you're looking to buy, sell, or invest, the evolving landscape offers plenty of opportunity with the right guidance.

Let’s Navigate 2025 Together!

Reach out to discuss your real estate goals and make 2025 a success!