85020 Phoenix, AZ Housing Market

Trend

The median listing price in 85020 is $399,000, representing a significant year-over-year decline of 20.2%. This is accompanied by an 8.2% decrease in the median price per square foot, now at $296. Active listings have increased by 10.7% year-over-year, reaching 187 units. Concurrently, the median days on market have extended by 14.5% to 63 days, indicating a slower absorption rate for available properties. The pending ratio stands at 0.26, an 8.1% year-over-year decrease, further reinforcing the decelerating market activity. While new listings saw a modest year-over-year decrease of 6.3%, the increased active inventory and extended market time suggest a shifting dynamic.

Negotiating leverage

The current market dynamics suggest a reduction in inventory pressure compared to the prior year, as evidenced by the 10.7% increase in active listings and the longer median days on market. This prolonged market exposure indicates that sellers are facing a slower pace of transactions. Price discipline is becoming increasingly important for sellers given the 20.2% decrease in median listing price and the 8.2% drop in median price per square foot. The year-over-year decline in the pending ratio to 0.26 indicates that the rate of properties going under contract has slowed, which can translate to greater negotiating leverage for buyers.

Luxury segment

The average listing price of $640,340 significantly exceeds the median listing price of $399,000, indicating a substantial premium for properties in the higher-end segment of the 85020 market. This suggests a divergence in pricing dynamics between the average and median property values, with the top of the market commanding considerably higher price points despite the overall softening conditions. The median price per square foot is $296.