eXp Realty
Alejandra Paladino
Alejandra Paladino - Your Real Estate Expert

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Arizona Real Estate Market Update 2025: Are Prices Rising, Falling, or Holding Steady?

If you’ve been keeping an eye on the Arizona housing market this year, you’ve probably noticed the conversation shifting. After years of rapid growth and record breaking prices, the market is starting to show signs of cooling. But what does that really mean for buyers and sellers in 2025? Are home prices rising, falling, or holding steady? Let’s break it down.Current State of the Arizona Housing Market
The short answer: Arizona home prices are holding mostly steady with slight declines in some areas.
According to Zillow, the average Arizona home value is around $422,446, which is down about 3.2% year over year.

Redfin reports that in August 2025, the median home price was roughly $441,200, essentially flat compared to last year.

In Phoenix, the largest metro in the state, median sale prices hover around $445,000, which is about 1.1% lower than 2024.

This suggests the days of double digit price growth are behind us, at least for now.

Inventory and Buyer Demand One of the biggest changes this year is the rise in inventory:
Arizona had about 45,000+ homes for sale in August 2025, up more than 16% compared to last year.

In June, total active listings were nearly 25% higher than in 2024, according to Norada Real Estate.

Homes are also spending more days on market, signaling a slower pace and less urgency among buyers.

While inventory is rising, demand hasn’t disappeared. Phoenix home sales in August were actually up 7% year over year, showing that buyers are still active — they’re just being more selective and taking their time.Why the Market Is Cooling
Several factors are driving this shift:
Higher mortgage rates – While rates have recently eased a bit, they’re still higher than what many buyers were used to, stretching affordability.
Increased cost of ownership – From property insurance to utilities, the true cost of owning a home is rising.

More options for buyers – With more homes on the market, buyers have leverage to negotiate and avoid bidding wars.

Economic adjustment – Arizona is coming off of record highs from 2020–2022, so today’s numbers look more like a correction than a crash.

What This Means for Buyers
If you’re planning to buy in 2025, this is good news:
You’ll find more homes to choose from.
Bidding wars are less common, giving you more room to negotiate.
Sellers are often willing to offer closing cost credits or rate buy downs to attract buyers.

Pro Tip: Make sure you’re preapproved for financing. Even a small rate shift can make a big difference in your monthly payment.What This Means for Sellers
If you’re selling this year, strategy matters more than ever:
Pricing competitively is critical. Buyers are quick to overlook overpriced homes.
Staging and presentation will help your property stand out in a larger pool of listings.
Be ready to offer concessions, such as repair credits or help with closing costs.

Homes that are move-in ready and well-priced are still selling quickly, especially in desirable neighborhoods.Regional Differences Across Arizona Not every part of Arizona is behaving the same way:
Phoenix metro: Slight price declines and longer days on market.
Smaller or rural cities: Some areas like Flagstaff and Kingman are still seeing price growth.

Luxury neighborhoods: Higher-end homes in Scottsdale, Paradise Valley, and Arcadia are generally more insulated and may continue to hold value better than entry-level markets.

The Bottom Line: 2025 Arizona Housing Market Outlook The Arizona real estate market is shifting toward balance. Prices aren’t skyrocketing like they did a few years ago, but we’re also not seeing a crash. Instead, buyers are gaining more leverage while sellers need to be strategic. Looking ahead into 2025 and early 2026:
Prices are likely to remain flat to slightly down, with pockets of growth depending on location.

Inventory will probably stay elevated, giving buyers more options.
The market will depend heavily on mortgage rate trends, migration patterns, and Arizona’s job growth.

Stay Informed with a Trusted Arizona Realtor®
The real estate market is constantly evolving, and having a local expert by your side can make all the difference. Whether you’re thinking of buying, selling, or investing, I can provide the insights, strategies, and guidance you need to make the best decision in today’s market. Contact me today for more information or to schedule a personalized consultation:
Alejandra Paladino  Top Producing REALTOR® | eXp Realty  Arizona Relocation & New Construction Specialist   Call/Text: 480.382.0519   Email: Alejandra@azalejandra.com   Search Homes: azalejandra.com

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What my clients are saying  

We LOVED working with Alejandra! She was recommended to us by our friends who had just purchased their first home. They spoke so highly of her and we completely understand why. She is so friendly and extremely knowledgeable. She will go in and ask all the right questions as well as make appropriate follow ups to ensure everything's on schedule. She truly goes above and beyond for her clients from capturing the special closing moment to gifting a holiday photo session us. We thought that was extremely thoughtful. Thank you Alejandra for making our home buying process so great!

 

~ Tania Contreras

Working with Alejandra has been an absolute delight! As first-time home buyers, my partner and I were filled with a mixture of excitement and nervousness about the process, but Alejandra quickly put our minds at ease with her exceptional guidance and expertise Thanks to Alejandra's expertise and support, we not only found the perfect home but also enjoyed a stress-free experience along the way. We cannot recommend her highly enough to anyone in search of a dedicated, knowledgeable, and reliable realtor. Working with Alejandra has truly been a five-star experience from start to finish, and we are immensely grateful for her guidance and assistance.

 

~ Jessica Clark

Best realtor hands down! I would recommend her 100% over for the following reasons: 1. Patience: Alejandra is a very calm and collected person. She will support and help when needed. 2. Knowledge: Her expertise in the market world is impressive. 3. Honest: No matter what the scenario is, she's very honest with real world experiences and answers questions truthfully. 4. Personality: She is a well rounded person. Constantly smiling and looking at the world in a positive manner. Her laugh is contagious. 5. Hard working/Organized: No matter the day and time she is very responsive. No joke. I've messaged her early before work or late after work and weekends. 6. Creativity: She enhances your new home purchasing experience by setting up photo AND video shoots. ?? I can go on and on and on but the hot reasons above is why I knew she was the best realtor for me. I'm glad she's in my life and she's made my home buying experience one of the best there is. ??

 

~ Angelica Davis

Alejandra was so amazing through the whole process of helping me sell my house . She made things smooth for me and took care of my family and for that I am forever grateful. If you are needing an amazing realtor she won’t let you down ! Thanks again Alejandra

 

~ Jennifer Toma

If we could give Alejandra 6 stars, we would! She is very sweet, patient, and amazing at what she does. Her and Tima are literally the definition of a dream team. They both made the entire purchase process, seamless. If you were contemplating whether or not to chose her as your Realtor, take this as a sign and do it!

 

~ Alejandra Mancinas-Pacheco

I’ve found Alejandra on Instagram and I am glad I did!. she’s very professional, very educational throughout the process, She provided with a homebuying guide, which I thought it was very thoughtful. Totally someone you can trust on with your homebuying process! Thank you, Alejandra??

 

~ L.B.

If we could give Alejandra 6 stars, we would! She is very sweet, patient, and amazing at what she does. Her and Tima are literally the definition of a dream team. They both made the entire purchase process, seamless. If you were contemplating whether or not to chose her as your Realtor, take this as a sign and do it!

 

~ Alejandra M-P.

Alejandra is the best! We initially discovered her Instagram page that led us to her YouTube page. Both accounts provide a ton of info, which helped us make informed decisions. Alejandra made our Arizona relocation to purchase our first home a memorable and smooth experience. She is knowledgeable, personable and caring. We highly recommend Alejandra as a real estate professional!

 

~ John T.

Thank you Alejandra for all your assistance in finding me a home. You made the process stress free and I truly enjoyed working with you.

 

~ Edgar R.

If you are looking for a reliable realtor look no further!!! Alejandra Paladino is amazing!!! She is very efficient, prompt, patient, honest, and dependable. I am very much pleased for all the help she did on my house-hunting journey up to the processing of documentation. I would recommend her.

 

~ Lane

We highly recommend Alejandra. She was able to find us a home in one month during this crazy market. The timing of the home being ready worked out perfectly for our move. She was extremely helpful with our situation since we were moving to Phoenix from out of state. Her positivity and passion will be to your advantage when finding a home in Phoenix!

 

~ Paige V.

Alejandra did a great job finding us a home in a hot and difficult market. She was very thorough and attentive to our needs and jumped through many hoops to make this happen. We appreciate all the hard work she put in to securing our home for us.

 

~ Ryan J.

Alejandra is amazing, she will go beyond measure to make sure all your requests met. I recommend her 100% all of the time all the time. I'm very very hard to please she was kind and courteous not matter how difficulty I may have been. The home we purchased was by lottery only, we could attend so she went for us. Stood in line, in the Arizona heat with a 100 people in order for us to a chance at our beautiful new home. She is the best!!!! Betty and Ty

 

~ Betty M.

Working with Alejandra this past year has been a wonderful blessing! She help guide us in finding our new home and helping us through the build of it; and when we were needing to sell our home in Tempe she was on top of everything assisting through every turn and twist. She was fun, professional, and exuberant With her love of assisting people to meet their dreams! I would recommend Alejandra 100% to all that need to find a home and or sell a home.

 

~ Elaine C.

My husband and I purchased a home in 2019 and quickly learned it was not the right location for our family. I found Alejandra through Instagram a few months ago and she was so prompt with her response and eagerness to help us get to where we needed to be. She was patient, kind and understanding. She knew exactly how to guide us during our sale, house hunt & escrow. The whole process went extremely smooth with her constant follow up and attention to detail. I would recommend using Alejandra for all of your real estate needs. Hands down the most professional agent I have ever come across since moving to Arizona.

 

~ Megan M.

Alejandra is amazing! As a first time homebuyer she made it so easy, stress free and an overall great experience! She was so flexible and even delivered the keys to my house later in the evening so I didn't have to wait. I would definitely recommend her and if I ever do this process again, she will be my go to!

 

~ Sydney E.

As a first time home buyer, we had a lot of questions and Alejandra made our process of searching & purchasing a house a breeze! She is GREAT at communicating and is always quick to respond to any questions and concerns we had. Her work ethic is impressive and we can tell she prioritize her job. She did a great job at getting the seller to cover closing costs and repair all our requests. We are so thankful for having an amazing realtor and hope you consider her! We are closing on a house with her tomorrow and I couldn't have asked for a better realtor.

 

~ Julia V.

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