September 2025 Phoenix Real Estate Market Update: Trends You Need To Know

By Arizona Home Group

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Is Phoenix real estate slowing down, or simply shifting with the seasons? After a quiet summer, signs point to activity picking up this fall, though affordability remains the biggest challenge.

Let’s take a closer look at what happened over the summer and where the market stands now.

Summer was slow, but fall activity is picking up. July and August were slow, as expected. Many sellers pulled listings after homes didn’t move, leading to reduced inventory. With school back in session, September and October typically bring more activity before things ease again around the holidays.

Inventory fell, but buyer activity is rising. Inventory dropped all summer, but pending sales have been rising for four straight weeks. A dip in interest rates in August encouraged more buyers back into the market. Sellers now face a key question: do they need to sell, or are they just testing the waters? This is not a market for casual sellers.

Home prices are easing, but affordability remains a challenge. The median home price in Phoenix is about $443,000, down 3.75% since January 2025 and 7.75% from the May 2022 peak. Prices are easing but remain far above pre-2020 levels, after climbing 67% in less than four years during Covid.

This rapid rise was unsustainable and has fueled today’s affordability problem, where high prices combined with elevated interest rates continue to challenge both buyers and sellers.

Looking ahead, expect more movement this fall before the typical holiday slowdown. For now, affordability defines the market: buyers are watching rates closely, and sellers need real motivation to succeed.

If you’re buying or selling, now is the time to understand how prices, rates, and inventory shifts affect you. Contact us at (602) 571-3730 or AHGadmin@gmail.com. We can help you plan smartly and take advantage of the opportunities available.