Phoenix Real Estate Market Update: March 2025

Spring is in the air, and so is a fresh wave of real estate activity here in Arcadia and the greater Phoenix area! As we step into March, it’s time to break down the latest numbers from the Cromford Report and what they mean for buyers and sellers navigating today’s market.

Key Market Stats: March 2025 vs. March 2024

• Active Listings (excluding UCB & CCBS): 23,934 (Up 44% YoY, Up 6.7% MoM)

• Active Listings (including UCB & CCBS): 27,377 (Up 38% YoY, Up 7.7% MoM)

• Pending Listings: 5,028 (Down 6.4% YoY, Up 14% MoM)

• Under Contract Listings: 8,471 (Down 2.6% YoY, Up 14% MoM)

• Monthly Sales: 5,745 (Down 0.2% YoY, Up 21% MoM)

• Monthly Avg. Sales Price per Sq. Ft.: $312.54 (Up 6.8% YoY, Down 0.3% MoM)

• Monthly Median Sales Price: $459,000 (Up 6.7% YoY, Up 1.28% MoM)

The Big Picture

We’re seeing a clear increase in inventory compared to last year, with active listings up 44%. While that’s great news for buyers looking for more choices, it also means sellers need to be strategic about pricing and marketing. The market isn’t quite as tight as it was in early 2024, but we’re still holding steady in many areas.

Interest rates have softened a bit, sitting around 6.75% for a 30-year fixed mortgage. This has helped to boost demand slightly, though not as quickly as the rise in supply. For buyers, this means more negotiating power. For sellers, it’s all about standing out—pricing right and presenting well.

Luxury Market Still on Fire

While the overall market is feeling the push and pull of supply and demand, the ultra-luxury sector is playing by a different set of rules. High-net-worth buyers continue to snap up properties over $3 million with little regard for interest rates. In fact, the 73 closed sales over $3 million last month pushed the market’s average price per square foot to $313. Without those sales, the average would have been $291 per square foot—a full 7% lower.

What’s Happening with Prices?

Pricing pressure varies by location. Outlying areas like Buckeye and Maricopa, where new builds are plentiful, are seeing downward pressure on resale prices. But in Arcadia and other established neighborhoods with high demand, prices are holding steady. In a balanced market, we expect home prices to rise in line with inflation, and with inflation expected to tick up in 2025, we could see continued price appreciation in the coming months.

What This Means for Buyers & Sellers

🔹 For Buyers: With inventory rising, now is the time to negotiate. More choices mean less competition and potentially better deals. If you’re financing, keep an eye on interest rate trends, as small changes can impact affordability.

🔹 For Sellers: Competition is increasing, so proper pricing and presentation are key. Homes that are well-maintained, staged, and priced competitively will move faster. If you're in a high-demand area like Arcadia, you still have strong leverage, but buyers are getting pickier.

Final Thoughts

The Arcadia and Phoenix real estate markets are shifting, but they remain strong. Whether you're looking to buy or sell, understanding the nuances of our local market is crucial. If you’re considering making a move this spring, let’s chat! I’m here to help you navigate the market and make the most informed decisions for your real estate goals.

Stay tuned for next month’s update, and as always, if you have any questions about your specific neighborhood, don’t hesitate to reach out!