The Greater Phoenix housing market in May 2025 continues to evolve. With prices inching up year-over-year but contract activity dropping. We’re seeing a buyer-friendly environment across most price points.
🏠 Market Snapshot: May 2025 vs May 2024 & April 2025
| Metric | May 2025 | April 2025 (MoM) | May 2024 (YoY) | Change (MoM) | Change (YoY) |
|---|---|---|---|---|---|
| Avg. Price per SqFt | $305.32 | $303.41 | $299.48 | +0.6% | +0.7% |
| Median Sales Price | $458,990 | $456,500 | $455,000 | +0.5% | +0.7% |
| Sale-to-List Ratio | 97.6% | 97.5% | 97.9% | +0.1% | -0.3% |
| Median Days on Market | 39 days | 36 days | 27 days | +3 days | +12 days |
| Seller % Concessions | 53% | 50% | 47% | +3% | +6% |
| Median Seller Concession $ | $10,000 | $10,000 | $9,500 | — | +$500 |
| Closed Sales | 6,668 | 6,511 | 7,120 | +2.4% | -6.4% |
📉 Takeaway: Prices are showing gradual appreciation, but homes are taking longer to sell, with buyers gaining leverage in negotiations.
📉 Price Negotiations Are Working in Buyers' Favor
The average buyer in May 2025 negotiated more savings than buyers in May 2024. The sale-to-list price ratio slightly improved from April's 97.5% to 97.6%, but still reflects buyer leverage in pricing discussions.
📊 Seller Concessions: A New Normal?
The percentage of sales with seller concessions climbed to 53%, up from 50% in April and 47% last year. This is the highest level since early 2020, and the median concession held steady at $10,000. A clear indicator of seller motivation.
⏳ Longer Selling Times
The median days on market rose to 39 days, up 3 days from April and 12 days from May 2024. This reflects more cautious buyer activity and longer decision cycles in a market offering more options.
📉 Contract Activity Drops
Contract ratios in early June 2025 have dropped compared to the previous year. A sign of lower buyer urgency and more inventory sitting on the market longer.
📈 Inventory Instability: Expired & Canceled Listings Surge
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Canceled Listings: 515 in Week 22 → up 41% vs last year
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Expired Listings: 486 in Week 22 → up 84% vs 2024, and +30% vs April
This trend suggests sellers are pulling listings rather than adjusting prices & possibly waiting for market improvements or re-listing under different strategies.
🌟 Paradise Valley Luxury Market Highlight
Paradise Valley claimed the highest residential sale of 2025 to date:
🏡 $30 million for a 22,000+ sqft estate on 9.14 acres. A rare blend of land, luxury, and location. This sale underscores the enduring demand for ultra-luxury properties, even as broader buyer sentiment cools.
🚀 West Valley Economic Boost: Goodyear Growth
GTI Energy is investing $33 million initially, with an additional $20M planned to build a 530,000 sqft facility in Goodyear, generating up to 600 jobs. This type of economic activity will support long-term demand across the West Valley.
📍 Which Cities Are Performing Best?
Top Seller’s Markets:
-
Chandler
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Paradise Valley
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Fountain Hills
Balanced Markets :
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Scottsdale
-
Phoenix
-
Glendale
Buyer's market:
- Queen Creek
- Surprise
- Buckeye
With most major markets drifting into balance or buyer territory, sellers must be sharp with pricing and presentation to stand out.
📌 Final Thoughts
Buyers have the upper hand right now. With more time, more choice, and better negotiation outcomes. For sellers, success comes down to pricing correctly, offering value, and leveraging strong representation.
📞 Let’s Connect
Thinking about making a move this summer? Whether buying, selling, or investing, I offer expert guidance grounded in data and personalized to your goals.
Arnaud Lavigne
Designated Broker/Owner – AGL Real Estate
📧 al@aglrestate.com
📍 Scottsdale – Paradise Valley – Phoenix
