July 2025 Market Update – Arizona Real Estate Snapshot

Sales Market Trends

  • Active Listings: 20,898 – Up 35.4% YoY. Inventory remains elevated but dipped from earlier spring highs. More choices for buyers, but pressure on sellers.
  • Median Sold Price/SF: $252.54 – Down 1.6% YoY. Prices continue to soften after a spring slide.
  • Days on Market: 62 – Homes are taking 29.2% longer to sell YoY. Slower velocity favors buyers.
  • Mortgage Rates: 6.60% – Slightly improved from June’s 6.77%. Still historically high, cooling demand.
  • Building Permits: 41,131 (12-month total) – Big drop from spring. Builders are pulling back on future supply.

Rental Market Trends

  • Active Listings: 6,030 – Up 19.3% YoY. Rental supply is surging, giving tenants more options.
  • Median Rent/SF: $1.37 – Down 0.7% YoY. Rent growth has reversed after a spring plateau.
  • Days on Market: 33 – Rentals are sitting nearly 18% longer than last year.

Key Takeaways for Investors

  • Sales side is cooling: More inventory, slower sales, and slight price drops. Good for acquisitions if you have patient capital.
  • Rental side is softening: More supply and slower leasing velocity mean landlords need sharper pricing and professional management.
  • Rising inventory + flat rents = tighter margins. Investors should expect thinner spreads and focus on operational efficiency.

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