Phoenix Real Estate: Rising Prices, Longer Sales Times, and 2025 Opportunities!

by Jeff Hernandez

Phoenix Metro Real Estate Market Update: December 2024

As we step into 2025, the latest data from the Phoenix real estate market provides valuable insights for buyers, sellers, and investors. Here's a detailed breakdown of the key trends and how they compare to the same time last year.

Listings

The number of active listings in December 2024 was 5,477, marking a significant 13.87% increase from the 4,810 listings in December 2023. This rise reflects a more robust inventory, giving buyers more options while potentially leading to a more balanced market compared to the tight conditions of late 2023.

Price Per Square Foot

Average Price/SF: December 2024 saw an average price per square foot of $281.67, up 4.58% from $269.33 in December 2023.
Median Price/SF: The median price per square foot rose to $258.89, an increase of 3.63% from $249.82 last year.

These annual gains highlight the steady appreciation of property values in the Phoenix market, providing continued confidence for homeowners and investors.

Days on Market (DOM)

Average DOM: Properties spent an average of 77 days on the market in December 2024, a 24.19% increase compared to 62 days in December 2023.
Median DOM: Similarly, the median DOM increased to 57 days, up 23.91% from 46 days last year.

This extended timeframe suggests a slight cooling in market pace, which could indicate an opportunity for buyers to negotiate better terms.

Sales Prices

Average Sales Price: The average sales price climbed to $601,785, an 8.29% increase from $555,706 in December 2023.
Median Sales Price: The median sales price rose to $450,000, up 4.65% from $430,000 last year.

These consistent price gains underscore the resilience of the Phoenix market, even amidst broader economic uncertainties.

Supply and Absorption Rate

Supply: The market supply was 3.55 months, a 17.70% increase from 3.02 months in December 2023.
Absorption Rate: The absorption rate decreased to 28.17%, down 15.03% from 33.15% last year.

These metrics suggest a market that is stabilizing but still leans toward sellers, though with slightly less urgency than in 2023.

Call to Action

Whether you’re considering buying, selling, or investing in Phoenix real estate, the trends are clear: the market is dynamic and full of opportunities. As a local expert and AI-Certified Agent, I can help you navigate these conditions to achieve your real estate goals.

Contact me today to discuss your plans and learn how my AI-driven strategies can maximize your success. Let’s make 2025 your best year in real estate yet!