As we compare the state of the housing market on May 1, 2025, with where it stood a year ago, there are some key shifts worth noting — especially if you’re thinking about buying or selling a home this year.

📊 Inventory is Up — Way Up

The number of active listings (excluding those under contract or with backup offers) rose by a significant 53% compared to this time last year. That’s 26,190 homes on the market now versus 17,129 a year ago. Even month-to-month, inventory grew nearly 5% from April.

When including homes under contract or accepting backup offers, that number jumps to 29,909, which is 43% higher than last year.

This increase in supply gives buyers more options and negotiating power, but it also puts pressure on prices.

🏡 More Homes Are Selling — But at Lower Prices

Sales activity picked up, with 7,303 homes sold in April — a 3.7% increase over last year, and nearly 5% more than in March. That’s great news for sellers looking to move.

However, home prices are heading the other direction:

  • Average price per square foot fell to $299.30 — down 2.4% year-over-year and nearly 4% lower than just last month.

  • Median home price dropped to $445,000 — down 1.1% from last year and 3.2% compared to the previous month.

So while more homes are selling, they’re selling for less.

📉 What’s Driving Prices Down?

Several factors are contributing to this price dip:

  1. More affordable homes are selling — increasing the share of lower-priced properties in the mix.

  2. Luxury sales have slowed — reducing the influence of high-end homes on average prices.

  3. Buyers are in control — with more listings and less urgency, buyers are negotiating harder.

🔥 Summer Slowdown Ahead?

As Arizona heads into its hottest months, real estate activity usually cools off. House hunting becomes less pleasant, and buyer urgency drops. That, combined with falling prices, often leads to a market slowdown through the summer.

With fewer homes under contract than a month ago, that trend may already be beginning.

🧭 What Does It All Mean?

  • For Buyers: This is a great time to explore your options. Prices are softening, and inventory is up. But keep in mind, waiting too long could mean missing the best opportunities if confidence returns to the market.

  • For Sellers: Pricing your home competitively is more important than ever. With more inventory and cautious buyers, standing out in the market will take strategy — and great presentation.

✅ The Bright Spot

The most encouraging news is that transaction volume is rising — a sign of life and movement in the market. While pricing trends remain uncertain, it’s clear that buyers are still out there and making moves.

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.

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