As 2025 closed, the Phoenix metropolitan area housing market delivered a quieter—but more balanced—finish than the turbulence we saw earlier in the year.
🏠 For-Sale Real Estate Market Snapshot
Active listings declined again in December, dropping to 19,227 homes, just 8.5% higher than last year. That’s a meaningful shift from the mid-year oversupply narrative and suggests seasonal demand is finally working through inventory.
Pricing continues its slow recalibration. The median sold price per square foot landed at $251.67, down 3.1% year over year. This isn’t a collapse—it’s normalization after several years of outsized appreciation.
Homes took 62 days on market, still slower than last year but improving versus earlier summer and fall readings. Mortgage rates provided some year-end relief, sliding to 6.16%, their lowest point of 2025 and a welcome tailwind heading into the new year.
🏘️ Rental Market Snapshot
Rental inventory also tightened seasonally, with 5,288 active listings, up 10.1% year over year but down sharply from fall highs.
Rents softened modestly. The median rented price per square foot fell to $1.29, a 2.3% annual decline, reflecting continued competition among landlords and elevated renter choice.
Leasing timelines stretched again, with median days on market rising to 45 days, reinforcing that tenants still hold negotiating leverage as we enter 2026.
🔍 Bottom Line
December wrapped up a year defined by adjustment, not distress. Inventory is easing, rates are improving, and both buyers and renters are approaching the market with more patience and leverage than they’ve had in years.
The stage is set for a measured—but more predictable—start to 2026.