The housing market is showing significant changes as new data reveals trends and dynamics fueled by rising home sales and innovative ownership models. Recent reports from Phoenix Realtors indicate increasing home sales, with sales rising by 4.1% compared to the previous year.
The month of January 2025 saw new home listings surge by 12.1%, contributing to the continuing popularity of residential properties. The median sales price for homes in Greater Phoenix increased by 5.8%, reaching $490,000, up from $463,000 last year.
“This is the third month in a row where closed sales have risen over the previous year; that's an encouraging start for 2025,” said Christy Walker, board president of Phoenix Realtors. “With the continuing increase in new listings, the market is showing more choices for buyers across all price ranges.”
While sales numbers soar, pending home sales dropped 34.5% from over 5,100 offers last year to nearly 3,350 this January. Homes are taking longer to sell, with the number of days on the market rising from 68 to 77 days as reported by the Digital Free Press.
The inventory for affordable homes remains relatively strong, with homes priced under $300,000 seeing inventory increase by 19.7%. Inventory for homes priced between $300,000 and $400,000 soared by 38.4% and 48.7%, respectively, indicating significant demand across various price points.
According to Walker, “Greater Phoenix is still a fast-growing market. Thousands of new jobs are coming online this year, largely driven by the Arizona Commerce Authority.” Major investments, including companies like Nestlé, Meta, and Taiwan Semiconductor Manufacturing Company setting up factories, are expected to continue driving up demand for housing.
Focusing on specific areas, the city of Phoenix recorded median single-family home prices rising to $485,000, with new listings experiencing an 11.2% increase even as pending sales took a hit, dropping by 37%.
Scottsdale, meanwhile, reported dramatic changes, with median home prices skyrocketing by 31.6% to $1,315,000 from $999,500 last year. The market there remains active, with closed sales increasing by 18.2% even as pending sales nearly halved, dropping by 44.8% compared to last year's data.
For residents of Surprise, the market was less favorable. Despite seeing 10.1% more new listings, both pending and closed sales declined, with the median sales price averaging nearly $434,000—practically flat compared to the previous year.
Similarly, Pinal County’s market reflected stability amid industrial growth, with median home prices slightly increasing by 3% to $380,000. New listings jumped significantly, up by 18.8%, contrasting with a 26.7% drop in pending sales.
Goodyear showed strong positive trends, with its median sales price edging up by 0.3% to nearly $482,000. The area's active market experienced substantial increases across new listings, closed sales, and pending sales, all rising impressively over the previous year.
On the other end of the spectrum, Buckeye faced challenges, with closed sales dropping by 9.1% and pending sales down by 27.7%. Despite this, their median price increased significantly by 7.3% to $418,320.
The current housing dynamics extends beyond just sales figures; the introduction of innovative ownership models has attracted attention. Companies like Pacaso are paving new paths for luxury vacation home ownership.
Pacaso's partnership with The Agency aims to simplify the acquisition of luxury homes through co-ownership, making the purchase of high-end properties more accessible. This model allows buyers to share ownership of luxury homes at differing destinations such as Miami, Paris, and Aspen.
Pacaso manages the entire ownership process, which includes property tours, financing, management, and resale, tapping The Agency’s extensive expertise to broaden their operation.
This co-ownership approach allows prospective buyers to own shares of luxury properties, making it financially feasible for those who might otherwise be out of the market. According to Pacaso executives, the model is both convenient and flexible, appealing to those wishing to invest without overextending financially.
With the combined influence of economic growth, rising prices, and innovative co-ownership models, potential buyers and investors are witnessing transformative changes across the housing market. Whether one is searching for affordable homes or luxury properties, opportunities continue to emerge amid these market shifts.