Phoenix’s Hottest Housing Markets in 2025, According to Phoenix REALTORS®

The Phoenix Metro housing market saw mixed results in 2024, with overall home sales slightly declining for the third consecutive year. However, despite a modest 0.4% dip in closed single-family home sales, certain areas within the Valley experienced remarkable growth, positioning them as the hottest housing markets in the region.

According to the yearly report from Phoenix REALTORS®, the Greater Phoenix area recorded 67,654 closed single-family home sales in 2024, a noticeable drop from the 105,322 annual sales reported just four years ago. Yet, beneath these broader market trends, specific neighborhoods and zip codes are showing impressive gains, both in terms of sales volume and price appreciation.

Sales Activity Shows Pockets of Strong Growth

While pending sales in the region decreased by 2.5%, dropping to 66,292 signed contracts, and new listings increased by 12.8%, the metro’s median sales price continued its upward trajectory. The median price closed at $460,000, reflecting a 4.3% increase from the previous year, showcasing the resilience of certain submarkets within Phoenix’s diverse housing landscape.

Christy Walker, board president of Phoenix REALTORS®, expressed optimism for the year ahead. “When 2023 ended, we were all pretty optimistic that 2024 would be a better year,” said Walker. “Nationally, an improvement is expected in 2025. With declines flattening at the end of last year, we’re optimistic for a good year ahead.”

One of the most significant drivers of housing market activity is the growth of new employment opportunities and infrastructure development in various parts of the metro area. The Taiwan Semiconductor Manufacturing Company (TSMC) has played a pivotal role in this trend. Their massive semiconductor fabrication facilities along Interstate 17 from Loop 101 to Carefree Highway are creating thousands of jobs, prompting builders to expand residential communities nearby. As a result, single-family home sales have surged in areas within commuting distance of these emerging job hubs.

The 3 Hottest Housing Markets in Metro Phoenix

Among the submarkets that saw the most significant growth in 2024, three areas stood out as the hottest housing markets in the Valley:

1. Glendale (85303 Zip Code): Central Glendale experienced an astonishing 50.8% increase in closed transactions, making it the fastest-growing submarket in the region.
2. Midtown and Uptown Phoenix: These central neighborhoods saw a 35.3% rise in closed sales, fueled by urban revitalization efforts and proximity to downtown amenities.
3. West Deer Valley Area: With a 23.1% jump in closed transactions, West Deer Valley continues to benefit from nearby employment opportunities and new housing developments.

These areas reflect the broader trend of buyers seeking affordable housing options in neighborhoods with easy access to employment centers, transportation, and lifestyle amenities.

Hottest Areas for Price Increases

While some areas saw a surge in sales volume, others experienced notable median sales price increases, highlighting the demand for homes in high-growth neighborhoods.

Leading the charge is Eloy, an emerging community that saw a 21.5% increase in median sales price in 2024. Following closely is Midtown Phoenix, which posted a 19.2% gain, further solidifying its reputation as one of the most desirable urban living areas in the city. Rounding out the top three is the area around the Loop 101 and State Route 51 junction, which saw a 14.8% price increase over 2023.

These price increases reflect strong buyer interest in neighborhoods that offer a blend of affordability, convenience, and lifestyle amenities.

Inventory Growth Offers More Choices for Buyers

Heading into 2025, the Phoenix Metro area has seen a notable increase in housing inventory, providing more options for prospective buyers. The region now has a 3.7-month supply of homes, with over 20,000 homes available at the start of 2025, up from 15,400 homes at the beginning of 2024. This 37% increase in inventory suggests a more balanced market, giving buyers more opportunities to find their ideal homes.

The 85017 Camelback West zip code saw the most significant increase in available homes, with inventory up 120.8% compared to the previous year. East central Glendale (85302) followed closely with a 110% increase, while north central Glendale (85306) posted an 87.9% gain in inventory.

These increases suggest that while demand remains strong, there are now more choices for buyers, which could help moderate price growth in certain submarkets.

Luxury Market Continues to Expand

Phoenix’s luxury market also saw impressive gains in 2024. More submarkets crossed the million-dollar median price threshold, reflecting the city’s growing appeal among high-end buyers.

Five years ago, Paradise Valley was the only submarket with a median home price over $1 million, but by 2023, North Scottsdale and Camelback East-Arcadia joined the ranks. Median prices in $6 million markets also saw dramatic growth, increasing from 53% to 83% between 2020 and 2024.

This trend highlights the increasing demand for luxury properties in Scottsdale, Paradise Valley, and other high-end neighborhoods, driven by out-of-state buyers and local professionals seeking upscale living options.

What to Expect in 2025

With flattening declines, increased inventory, and growing demand in specific submarkets, 2025 is poised to be a strong year for the Phoenix Metro housing market. Areas like Glendale, Midtown Phoenix, and Deer Valley are expected to continue leading in sales growth, while neighborhoods near employment hubs and transportation corridors will likely see continued price appreciation.

For buyers, the expanded inventory provides more choices, while sellers in high-demand neighborhoods can capitalize on strong market conditions. Whether you’re looking to buy your first home, upgrade to a luxury property, or invest in Phoenix real estate, the opportunities are abundant in 2025.

Ready to Make Your Move in Phoenix’s Hottest Housing Markets?

If you’re considering buying, selling, or investing in the Phoenix Metro area, I’m here to help you navigate the market and find the perfect opportunity. Let’s connect and explore how you can make the most of Phoenix’s dynamic real estate landscape.📧 Email: jeff@conniecollagroup.com
📞 Phone: +1 (602) 550-1114
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