What’s Happening in Arizona’s Real Estate Market?

By Arizona Home Group

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What makes the March 2025 housing market different from previous years? As we enter the spring selling season, it’s important to understand these changes to make smart buying or selling decisions.

Increased inventory but slower sales. One major change this March is the increase in available homes. More houses are on the market than last year, which is typical at this time. However, what’s unusual is that new listings are coming in faster than homes are being sold, resulting in a low pending ratio of just 18%.

In a healthy market, that number should be between 35% and 39%. This drop means homes are taking longer to sell. Right now, there’s a five-month supply of homes available, up from just 3.1 months last year, showing a significant shift in the market.

Why do we have so much inventory right now? Several factors are causing the surge in home listings. Many homeowners waited to sell last year due to uncertainty around the election and holiday breaks. When January came, they all decided to list their homes at once, leading to a flood of new inventory.

The challenge now is that buyer interest hasn’t matched this increase in supply. Basic economics tells us that prices usually fall when there are more homes than buyers—and that’s what we’re starting to see. Price reductions are becoming more frequent, and this trend will likely continue if sales don’t pick up soon.

Marketing matters more than ever. In today’s competitive market, just listing your home isn’t enough. You need a strong marketing strategy. Our team focuses on dynamic marketing plans that boost your home’s visibility and attract serious buyers quickly. From expert staging advice to targeted online ads, we make sure your home leaves a great impression from the start.

Getting your home ready before listing is also key. Simple updates, decluttering, and smart pricing can greatly impact how quickly and profitably your home sells. Our team is here to provide personalized guidance every step of the way to help you get the best price possible.

If you’ve been wondering whether now is a good time to sell, the answer depends on your approach. While the market presents challenges, opportunities still exist for those who adapt. Contact us at (602) 571-3730 or email AHGadmin@gmail.com. We’re excited to share insights and strategies to help you succeed in this ever-changing real estate environment.