Arizona’s population is growing, and the housing market is following along. After a turbulent few years due to the COVID-10 pandemic and an economic downturn, people are once again purchasing homes and relocating for better opportunities.
The housing market is always in flux due to economic and political factors. It’s not quite clear yet what President Trump’s executive orders about housing will bring to the Arizona market, but overall, experts are predicting that the market will soon lean more toward buyers. Each of Arizona’s major markets is slightly different, but all are prospering. This article will highlight some of the shifts in each of the metropolitan areas so you can make an informed decision about your next move.
Phoenix
Phoenix’s market is strong and undergoing a healthy correction for a more balanced relationship between buyers and sellers. While interest rates are high, they are expected to start dropping soon, meaning that a Phoenix refinance may be in the cards for many buyers who purchased during historical interest highs.
The average home price is currently around $450,000, which is about 6.5% higher than last year. However, more homes are being sold than last year, and homes are spending more time on the market, indicating that the fierce bidding wars of the past few years are starting to taper off.
Tucson
The Tucson market is relatively competitive, but prices have remained remarkably stable. This indicates a balanced market without major price spikes, which is backed up by the solid housing supply.
Currently, the average Tucson home costs around $327,000, up only 0.2% from last year. The Tucson Association of Realtors released its January 2025 report, which noted that the overwhelming majority of homes sold are in the $300,000 to $399,999 range. There is not a strong market for luxury homes over $1.2 million. In general, the winter months are a slow period for Arizona home sales, but we can expect increasing activity starting in spring.
Mesa
Like Tucson, Mesa’s housing prices have remained almost unchanged over the past year. The median sales price is $450,000. While more homes have been sold year over year, the time on the market has increased by 14 days. The typical home spends about 58 days on the market, which is relatively slow.
In most cases, homes sell for almost the same as the list price, though about one-third of homes have a small price drop. This suggests that buyers are currently more in control of the Mesa market.
Prescott
Redfin notes that Prescott has a pretty quiet market, and homes spend more time on the market here than in other places. The median sales price is $634,000, up 10.3% year over year. Despite this price jump, homes spend a massive 102 days on the market, 32 more days than at this same time last year. Home sales are also down by 6%.
Though this means that sellers will have a tough time selling their properties, it is quite a boon for buyers who want to take advantage of a good deal. Only about 7.9% of homes sold above the list price, meaning that buyers can have significant leverage when trying to purchase their dream home.
Tempe
Tempe’s market has heated up significantly in the past year. The median sales price is $490,000, up 10.2% year over year, and the median days on the market have dropped by 14 days. A record number of homes were sold at the beginning of 2025, with 36.5% more sales than last year. Over 15% of homes sell above the list price, indicating that this is a strong seller’s market.
Chandler
Chandler is known for being the playground of the rich and famous, and the housing market backs this up. The median sales price for a home in Chandler is $529,000, which is up 7.6%. More homes are being sold than last year, though they are spending 21 more days on the market year over year. About 14% of homes sell over the list price, and 32% have at least some price drop before being sold.
Conclusion
Looking at all of Arizona’s major cities, it’s clear that certain areas are experiencing a housing boom while others are slowing down or equalizing after a hectic few years. Prescott specifically has a strong buyer’s market, while Phoenix and Tempe are more balanced.
It’s important to prioritize your personal needs over the housing market when choosing whether to buy, sell, or refinance your home. While real estate experts expect that housing prices will start to come down soon and it may be a better time to buy, you may still find the perfect home for the right price whenever you start looking.
Overall, Arizona is expected to continue growing its housing sector thanks to private-sector growth and demographic changes. Time will only tell how much housing prices may change in the foreseeable future, but for now, investors and homeowners alike can enjoy significant appreciation.
