Phoenix & Scottsdale Housing Market Trends – February 2025

by Jeff Hernandez

The Phoenix real estate market is shifting, with rising inventory, stable pricing, and longer days on market (DOM). February 2025’s ARMLS report reveals that while home prices remain steady, sellers must be strategic to attract buyers in this evolving market.

For Scottsdale real estate sellers, particularly those with luxury homes in 85254, 85260, 85255, and 85268, pricing, marketing, and AI-driven strategies will be key to securing top-dollar offers in a more balanced market.

1. Housing Inventory is Rising

Total Active Listings: 23,699 (+45.60% YoY)
New Listings: 5,638 (+22.03% from last month)
Months of Supply: 4.20 (up significantly from last year’s 2.91)

✅ What This Means: Buyers have more options, creating a shift away from the aggressive seller’s market of recent years.

2. Home Prices Holding Steady

Median Sales Price: $455,000 (+3.41% YoY)
Average Sales Price: $615,090 (+7.86% YoY)
Average Price per Sq. Ft.: $311.39 (-2.41% YoY)

✅ What This Means: Prices remain strong, but sellers must price competitively to avoid extended market times.

3. Scottsdale & Luxury Home Market Insights

Luxury home listings ($750K+) are increasing, leading to longer DOM.
Average List Price: $711,312 (higher-end properties are adjusting slowly)
Days on Market (DOM):
- Average: 81 days (up 15.71% YoY)
- Median: 59 days (up 18% YoY)

✅ What This Means: Scottsdale luxury home sellers must adjust pricing strategies and use AI-driven real estate marketing to capture buyer attention.

4. Market Shift: Buyer & Seller Takeaways

📌 For Buyers:
✔ More inventory = more negotiating power.
✔ Longer DOM means potential for better deals.
✔ Luxury home prices are stabilizing, making it a good time to buy before demand picks up.

📌 For Sellers:
✔ Overpricing leads to longer market times and price cuts.
✔ AI-powered marketing and targeted online exposure are essential.
✔ Well-presented, strategically priced homes are still selling quickly.

What’s Next for Scottsdale & Phoenix Real Estate?

As the market transitions, sellers need an AI-driven strategy to maximize their home’s visibility and value.

🏡 Thinking of selling? My A.I. Listing Advantage™ ensures your home is optimized for the highest exposure, targeting the right buyers and securing better offers faster.

📩 Let’s connect! Whether buying or selling in Scottsdale, Paradise Valley, or North Phoenix, I’ll help you navigate the market for the best outcome.