The Phoenix housing market wrapped up September with signs of cooling across both the sales and rental sides. Elevated inventory, steady pricing pressure, and shifting rental dynamics are shaping decisions for buyers, sellers, and investors.
Sales Market Trends
- Active Listings: 21,059 (+20.2% YoY)
Inventory remains well above last year’s levels, but the pace of growth has slowed compared to spring’s surge. Buyers continue to enjoy more options, while sellers face tougher competition. - Median Sold Price/SF: $251.59 (↓1.5% YoY)
Prices have softened modestly, reflecting higher inventory and longer selling times. - Days on Market: 65 (↑27.5% YoY)
Homes are sitting nearly a month longer than last year, a clear sign of slower velocity. - Mortgage Rates: 6.39%
Rates ticked up slightly after the Fed cut its benchmark rate. Even so, this remains the lowest mortgage level since last fall. - Building Permits: 41,131 (12-month sum, last reported in July)
New supply from builders continues to contract after heavy pullbacks earlier this year.
Rental Market Trends
- Active Rental Listings: 6,107 (+14.4% YoY)
Rental supply remains elevated, though it has flattened in recent months. - Median Rent/SF: $1.33 (↓2.2% YoY)
Rents are softening further as tenants gain leverage from more choices on the market. - Days on Market: 40 (↑14.3% YoY)
Rentals are taking longer to place, putting more pressure on landlords to price competitively and keep homes in top condition.
Takeaway
Phoenix is in a balancing phase: sellers and landlords can no longer rely on tight supply to drive fast deals or rent growth, while buyers and tenants are enjoying more favorable conditions. With mortgage rates still in the mid-6s and rental supply high, the second half of 2025 may continue to lean toward demand-side advantage.