June Market Snapshot: A Cooling Trend in Demand, but Prices Hold Steady

Here’s how the numbers from June 1, 2025, compare to the same time last year across all property types and areas:

• Active Listings: 26,580 — up 47% from 18,044 last year, and up 1.5% from last month

• Pending Listings: 4,595 — down 8.4% from last year and down 14% from May

• Under Contract Listings: 7,936 — down 4.7% from last year and down 12% from May

• Monthly Sales: 7,095 — down 6.6% year-over-year and down 3.2% from last month

• Average Price per Sq. Ft.: $300.14 — up 0.8% from last year, a slight 0.3% bump from May

• Median Sales Price: $455,000 — up 1.1% year-over-year and 2.2% from May

Market Insights

While listing inventory growth has slowed—thanks to fewer new listings—demand has dropped more noticeably. The 12% month-over-month drop in contracts is concerning, especially since contract activity was already soft in May. However, the dip in closings looks worse than it is due to fewer working days in May 2025 compared to May 2024.

Prices ticked upward, but that may be due to a higher share of luxury home closings rather than across-the-board appreciation. Median pricing also rose unexpectedly, though this may not last.

Mortgage Trends

Rates remain close to 7%, with limited signs of improvement. Many builders are offering buydowns to attract buyers, often targeting 4.99% financing. Negotiation flexibility is higher now, especially as builders push to meet quarterly goals.

Market Index & Outlook

The market is  indicating a weak seller advantage—but not a crash scenario. Arizona’s supply-demand imbalance reflects a national trend, with similar or more pronounced challenges in states like Florida and Texas. Some Northeast markets, however, still favor sellers.

Looking ahead, June’s key metric is new listing activity. If supply remains low, it could help balance softer demand. But if listings rise again, sellers may face increasing pressure.

The Luxury Segment

Luxury homes (especially over $3M) defy broader market trends. After a sluggish April, May saw strong activity—mirroring gains in the stock and crypto markets. Supply in this tier actually decreased, and while sales volume is small, buyer appetite for high-end homes remains strong.

Conclusion

The balance between supply and demand remains challenging for Arizona sellers.

Need help navigating the market? Whether you are thinking of buying or selling, we are here to help you make sense of what’s happening and how it affects your next steps.

If you have any questions, please reach us directly.