May 2025 Market Update | SUPPLY GROWING DEMAND SLOWING

Phoenix Housing Market Update – May 2025 | Why It’s a Buyer’s Market & How to Take Advantage

The Phoenix real estate market has shifted in favor of buyers this May 2025, presenting unique opportunities for those looking to purchase a home. With increased inventory and more negotiating power, now might be the perfect time to make your move.

🏠 Current Market Snapshot
Inventory Surge: Active listings have risen sharply, increasing by nearly 39% from January 2024 to January 2025. This growth gives buyers a wider selection of homes to choose from.

Moderate Price Adjustments: While home prices have seen modest increases, many sellers are offering concessions, with over half of recent sales including incentives like covering closing costs or offering rate buy-downs.

Mortgage Rates: Rates have eased slightly, hovering around 6.87%, the lowest level of 2025, potentially enhancing affordability for buyers.

💼 Advantages for Buyers
Greater Negotiating Power: With more homes on the market and longer listing durations, buyers can negotiate better terms, including price reductions and seller concessions.

Assumable Mortgages: Some buyers are exploring assumable mortgages, allowing them to take over the seller's existing loan at a lower interest rate, leading to significant savings over time.

Reduced Competition: The increase in inventory means fewer bidding wars, giving buyers more time to make informed decisions without the pressure of immediate competition.

📊 Market Trends to Watch
Price Reductions: Approximately 25.5% of listings in the Phoenix metro area have seen price reductions, indicating a shift towards more buyer-friendly pricing.

Balanced Market Conditions: The market is approaching a balanced state, with supply and demand levels aligning more closely, offering a stable environment for both buyers and sellers.
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📍 Local Insights
Buyer-Friendly Areas: Cities like Tempe, Goodyear, and Queen Creek are experiencing conditions favorable to buyers, with increased listings and more room for negotiation.

Luxury Market Dynamics: Homes priced between $1M–$1.5M are seeing strong growth, while condos and townhomes under $400K have experienced slight declines, presenting opportunities across different market segments.

Thinking of buying a home in Phoenix? With the current market conditions, it's an opportune time to explore your options. Reach out to local real estate professionals to guide you through the process and help you make the most of this buyer's market.

🔔 Subscribe for more updates on the Phoenix housing market and tips for navigating the real estate landscape.Daniel Brown is the Founder, CEO, & REALTOR® at Myriad at My Home Group. Located in Central Phoenix, Myriad serves clients throughout the Phoenix metropolitan area.

Website: http://www.MyriadAZ.com/
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