Good afternoon friends,

Mickie and I trust that you all had a wonderful holiday season and hope that all is well with you and yours.  As we settle into January 2025 we seen the ever changing residential real estate market settling with advantage to the buyer.  Higher than normal mortgage interest rates along with price increases over the last couple of years have really put affordability to the forefront.  Inventory of available homes is up and buyer demand is suppressed.  This will be the norm until either:   Mortgage interest rates moderate or prices come down.  Migration is always the wild card for metro Phoenix as newcomers from areas with less affordable pricing tend to have a different opinion of what affordability looks like here locally.  Regardless of how this unfolds, 2025 should be an interesting year in our industry.  Here is the market snapshot as I see it today:

 

As of January 2025, the East Valley communities of Metro Phoenix—including Chandler, Gilbert, Mesa, and Tempe—are experiencing a notable shift toward a buyer’s market in residential real estate. This transition is characterized by an increase in housing inventory and a moderation in home prices, offering prospective buyers more options and negotiating power.

Increased Housing Inventory

Data from the Arizona Regional Multiple Listing Service (ARMLS) indicates a 15% year-over-year increase in active listings in the East Valley as of December 2024. This rise in inventory provides buyers with a broader selection of properties, reducing the urgency to make quick purchasing decisions.

Moderation in Home Prices

According to Zillow’s latest market report, the median home price in the East Valley stood at $450,000 in December 2024, reflecting a 2% decrease from the previous year. This slight decline suggests a cooling from the rapid price appreciation seen in earlier years, making homeownership more attainable for many buyers.

Extended Days on Market

ARMLS data reveals that the average days on market for homes in the East Valley increased to 45 days in December 2024, up from 30 days in December 2023. This extension indicates that homes are taking longer to sell, providing buyers with additional time to consider their options and negotiate favorable terms.

Implications for Buyers

The current market conditions in the East Valley are advantageous for buyers. With increased inventory and moderating prices, purchasers have greater leverage to negotiate better deals. Additionally, the extended time homes remain on the market allows for more thorough property evaluations and decision-making.

Implications for Sellers

For sellers, the shift to a buyer’s market necessitates strategic pricing and enhanced property presentation. Competitive pricing aligned with current market trends is essential to attract potential buyers. Investing in home improvements and staging can also make properties more appealing in a market where buyers have numerous options.

Conclusion

The East Valley’s transition to a buyer’s market in residential real estate presents unique opportunities and challenges. Staying informed about market trends and leveraging the expertise of local real estate professionals can help both buyers and sellers navigate this evolving landscape effectively.

Sources:

• Arizona Regional Multiple Listing Service (ARMLS)
• Zillow Market Report

As always, Mickie and I are available for your questions about the overall market, your neighborhood or your specific property.  We will always counsel from a position of experience and expertise and we will always tell you honestly what we think.

We are a relationship based business and our opportunities to help individuals and families are exclusively by word of mouth referrals and our online reviews/testimonials.  We welcome your referrals of friends, family or co-workers that may need assistance in our space.  We are always happy to help and there is never a fee or obligation for initial consultations.

Hoping your year is off to a tremendous start and hope to see you out there soon.

Until next time my friends,

Mark Newman