August 2025 Regional Phoenix Monthly Housing Report

This report covers the entire Phoenix Metropolitan Area, Maricopa County, and parts of Pinal County. You can also view our city specific reports.

There are currently 3.9 times more sellers than buyers. The facts: 24,125 listings to start August divided by 6,180 sales in August. That ratio is unchanged from March, April, May, June, & July, but it's down from 4.1 in February.

This report is compiled monthly with data taken from the Arizona Regional MLS and is intended to give our readers an understanding of the Phoenix Area Housing Market. It compares short-term performance as well as longer-term performance. Our reports are factual, and any opinions stated are our opinions.

We're still in a buyer's market based on a high inventory, lower than normal home sales, and an -$16,218 gap between listing and sales prices over the 6,180 sales. Details follow below.

Statistical Categories

Home Sales

There were 6,180 home sales in July, down -455 from the 6,635 sales in June (-6.9%). July's sales were:

• -455 lower than June

• -21 lower than July 2024

• 97% of the 3 year average of 6,384 monthly sales

To see a longer term history, click on our Monthly Sales Chart.

As a point of reference, monthly home sales averaged 9,165 in the "12-months" before interest rates started increasing in March of 2022.

Comparison of Home Sales "Pre and Post" Interest Rate Hikes

Time Period	AVG Monthly Sales
Apr '21 - Mar '22 (prior to rate hikes)	9,165
Apr '22 - Mar '23 (12-months after hikes)	6,511
Apr '23 - Mar '24 (months 13-24 after hikes)	5,956
Apr '24 - Mar '25 (months 25-36 after hikes)	6,035
Apr '25 - present	6,799

Sales will slow down through the rest of the year, so the current 6,799 average will decrease with each following month. The housing industry desperately needs a reduction in mortgage rates to stimulate sales.

Try Our Versatile Home Search

Inventory

August 2025 began with 24,125 listings, down -1,006 from July. Additionally, the total rise in inventory from the start of 2025 is 4,218 homes. View our longer-term chart for Housing Inventory.

Comparison of Monthly Listings "Pre and Post" Interest Rate Hikes

Time Period	AVG Monthly Listings
Apr '21 - Mar '22 (prior to hikes)	5,832
Apr '22 - Mar '23 (12-months after hikes)	15,017
Apr '23 - Mar '24 (months 13-24 after hikes)	13,593
Apr '24 - Mar '25 (months 25-36 after hikes)	19,559
Apr '25 through August	25,264

Price-Per Square Foot (PPSF)

PPSF dropped substantially in July to $285.54. July's PPSF was:

• -$7.60 less than June

• $1.09 more than July 2024

• 97% of the 2024 average of $293.80

• Has steadily dropped from $313.60 in January

Click here for a longer-term Price History.

Price-per square foot is an ideal measurement of home values because it takes into consideration the size of sold homes. Median price does not.

NOTE: prices vary by neighborhood, so this overall average should not be used for any specific home. Contact us if you want information on your home's value.

Month	Price-Per Square Foot
July '25	$285.54
June '25	$293.14
May '25	$290.57
April '25	$299.34
March '25	$310.01
February '25	$312.46
January '25	$313.60
December '24	$303.63
November '24	$289.67
October '24	$290.67
September '24	$284.63
August '24	$290.57
July '24	$284.45
June '24	$295.29
May '24	$296.71

List vs Sales Price

This is an interesting category you might not find any other place. It's a really good indicator of market conditions. In a seller's market, homes will sell for more than list/asking price. Conversely, homes will sell for less than list price in a buyer's market.

As a point of reference, homes were selling for +$10,100 more than list price in April '22 when we were still in a seller's market and before the effect of increased mortgage rates.

This table also shows the price range of $300K - $600K because it generally accounts for 60% of all sales. It's a contrast to all sales within the Greater Phoenix Area.

+/- Difference Between List & Sales Price

Month	$300K - $600K	All Sales
Jul '25	-$6,994	-$16,218
Jun '25	-$6,420	-$18,092
May '25	-$6,162	-$14,926
Apr '25	-$5,938	-$14,718
Mar '25	-$6,226	-$15,778
Feb '25	-$6,587	-$14,821
Jan '25	-$7,342	$-18,092
Dec '24	-$6,737	-$16,731
Nov '24	-$5,399	-$12,544
Oct '24	-$5,924	-$13,297
Sept '24	-$5,880	-$13,101
Aug '24	-$5,906	-$13,109
Jul '24	-$4,988	-$13,856
Jun '24	-$5,585	-$13,745
May '24	-$5,336	-$12,982
Apr '24	-$5,163	-$13,350
Mar '24	-$5,486	-$12,359
Feb '24	-$6,163	-$12,136
Jan '24	-$7,174	-$14,844

FOMC Interest Rate Changes

The dramatic change from a seller's market to a buyer's market began when the Federal Open Market Committee (FOMC), a division of the Federal Reserve that sets monetary policy, increased interest rates to combat inflation. To date there have been 11 rate increases and 3 decreases. The net affect is a 4.25% increase in the prime rate over a 40 month time span.

The FOMC is continually monitoring factors in the economy to determine their next actions. Although there is a correlation, mortgage rates aren't directly tied to the Fed rate. The economy and yields on 10-year Treasury Bonds affect mortgage rates.

I personally feel a reduction in mortgage rates to a range of 5.0 - 5.5 % would be a win for consumers and allow more buyers into the market.

Here is the history:

• .25% in March '22

• .50% in May '22(which was the largest since 2000)

• .75% in June '22 (the largest increase since 1994)

• .75% in July '22

• .75% in September '22

• .75% in November '22

• .50% in December '22

• .25% in February '23

• .25% in March '23

• .25% in May '23

• .25% in July '23

• -.50% in September '24

• -.25% in November '24

• -.25% in December '24

Days on Market

This is another indicator of where the market stands. Low time to sale generally happens in a seller's market and higher days generally happen in a buyer's market. We were in a seller's market before the interest rate increases, and it took about 30-days from listing a home to when it closed escrow. Access our longer term chart for Days on Market.

Month	Days to Sale
Jul '25	77
June '25	74
May '25	72
April '25	72
March '25	74
February '25	76
January '25	78
December '24	73
November '24	68
October '24	69
September '24	68
August '24	68
July '24	63
June '24	63

Distressed Properties

46 was the total for July. Distressed properties are bank owned homes and short sales. They disappear when mortgage companies maintain strict lending policies, don't provide borrowers with risky loans, and homeowners make enough money to pay their mortgages.

Distressed properties have been a non-factor for a long time. Click here for our longer-term chart on Distressed Sales. Here are a couple quick facts about distressed properties:

• they peaked in March of 2009 at 75.9% of total sales

• went under 50% of total sales in March 2012

• went under 25% of total sales in April 2013

• went under 10% in February 2015

• have stayed under 1% since February 2020

Month	Distressed Property Sales
Jul '25	46
June '25	32
May '25	39
April '25	23
March '25	32
February '25	43
January '25	30
December '24	33
November '24	23
October '24	25
September '24	20
August '24	22
July '24	26
June '24	18

Ron Wilczek has been tracking and writing about Greater Phoenix Real Estate Market since 2008. He's been a Realtor since 1999 and the broker of Metro Phoenix Homes since 2009.