85085 Phoenix, AZ Housing Market

Trend

The median listing price has decreased by 1.6% month-over-month and 3.4% year-over-year to $675,000, indicating price softening. Active listings are down marginally by 3.0% year-over-year to 162 units, suggesting some constriction of supply, yet new listings increased by 7.7% year-over-year to 56. Median days on market extended to 57, a 5.6% increase year-over-year, reflecting a slower absorption rate of available properties. The pending ratio stands at 0.39, a 2.4% year-over-year decline, signifying reduced buyer activity relative to available inventory. The share of properties with price reductions decreased by 7.0% year-over-year to 25.8%, possibly due to initial pricing adjustments by sellers.

Negotiating leverage

The extending median days on market and declining pending ratio indicate a slower pace of transactions, suggesting an environment where buyers may have more time to evaluate properties and potentially exert greater price discipline. While active listings show a modest year-over-year decline, the increase in new listings and the lower pending ratio collectively exert pressure on inventory, potentially giving buyers more leverage in negotiations. The year-over-year decrease in the median listing price further underscores this shift, influencing price setting and potentially leading to more deliberate negotiations.

Luxury segment

Within the luxury segment, the average listing price of $750,719 significantly exceeds the median listing price of $675,000, illustrating a typical spread for higher-value properties. The median price per square foot is $280, a modest year-over-year decrease of 0.7%, indicating that premium properties are generally maintaining value on a per-square-foot basis, but with some erosion evident at the top end of the market given price range as the overall market cools.