Arizona’s Housing Market Has Shifted—What’s Your Next Move?

Six months ago, buying a home in Arizona felt like trying to win the lottery. You’d find a house you loved, rush to put in an offer, and—just like that—it was gone. Homes were selling in days, sometimes hours, and buyers were left scrambling. Sellers barely had to lift a finger, with bidding wars driving prices sky-high.

But something’s different now.

If you’ve been waiting for the right time to buy, this might be your moment. And if you’re selling, how you price and position your home now will determine your success. The January 2025 ARMLS report reveals a major shift in Arizona’s real estate market—one that’s leveling the playing field for buyers while forcing sellers to adjust their strategies.

Buyers: Your Time Has Finally Come

For the first time in years, buyers are no longer being pushed into rushed decisions. Inventory has surged, up 45% compared to last year, giving buyers more choices and breathing room. Homes that would have been snatched up in a bidding war just months ago are now sitting longer—with the average days on market (DOM) climbing to 83 days, a 22% increase over the last six months.

This means one thing: buyers have more negotiating power. You don’t have to settle for the first home you see. You don’t have to waive inspections or overpay just to stay competitive. For those who sat out last year because the market felt too overwhelming, this is your window of opportunity.

That said, waiting too long could be risky. The median sales price is still holding at $450,000, which means values are stable. If demand picks up again in the spring—as it often does in Arizona—you could find yourself back in a more competitive market. Act while you still have the advantage.

Sellers: Strategy Matters More Than Ever

If you’re selling, this shift doesn’t mean the market is bad—it just means you need a plan. The days of listing at the highest possible price and expecting multiple offers within 24 hours are over. Today’s buyers are more cautious, more selective, and more willing to negotiate.

One of the biggest mistakes sellers are making right now? Overpricing. With more inventory available, buyers aren’t rushing into bad deals, and overpriced homes are sitting unsold. Pricing correctly from the start is crucial. Homes that are competitively priced and well-presented are still moving, while those priced too high are being ignored.

If you’re in the luxury market, there’s good news: High-end homes are still in demand. The average list price jumped to $745,167, a 17% increase in just one month. Arizona continues to attract high-net-worth buyers, and well-positioned homes are moving fast. If your property falls into this category, now might be the perfect time to sell.

What’s Next for Arizona’s Market?

Arizona’s real estate market isn’t crashing—it’s correcting. This is what a balanced market looks like. Buyers have more choices, sellers have to work a little harder, and pricing and strategy matter more than ever.

Having lived in Arizona for 33 years, I’ve seen this cycle before. The demand for housing in this state isn’t going away. People will always want to live here—whether it’s families looking for great schools, retirees seeking sunshine, or investors betting on Arizona’s economic growth. The key to success in this market? Make smart, informed moves now. Buyers who take advantage of increased inventory will have more options than they’ve had in years. Sellers who price strategically and invest in strong marketing will still get great offers. The real question is: What’s your next move?