Happy New Year! A Market Update and 2025 Outlook for Phoenix Real Estate

A Snapshot of the 2024 Phoenix Real Estate Market

Click to watch my final Market Update of 2024!  Market Update Click Here!

1. A Year of Balancing Supply and Demand

The Cromford® Market Index (CMI) showed mixed trends throughout 2024. Central and high-end markets like Scottsdale and Paradise Valley remained favorable to sellers, while outlying areas like Buckeye and Maricopa leaned toward buyers due to excess inventory.

• Luxury Markets Thrived: High-end neighborhoods, such as Silverleaf in Scottsdale, experienced steady demand, with an average price increase of 6–8%.
• Outlying Markets Slowed: Suburban areas saw inventory rise, creating more negotiating power for buyers in master-planned communities.

2. New Construction Was a Key Player

Builders continued to meet demand for new homes across the Phoenix metro area, with a focus on energy efficiency and customizable designs. Communities like Sterling Grove in Surprise and Vistancia in Peoria attracted buyers with resort-style amenities and modern floor plans.

3. Rising Mortgage Rates Impacted Activity

Higher interest rates slowed market activity for much of the year. Buyers sought affordability in cities like Mesa and Chandler, while sellers in high-demand areas adjusted pricing strategies to remain competitive.

What to Expect in 2025

1. A Gradual Market Rebound

While inventory levels are likely to stabilize, central areas and luxury markets are expected to maintain their strength. Buyers can anticipate more choices and balanced pricing in outlying areas, while sellers may find stronger demand as interest rates level off.

2. Continued Growth in New Construction

Master-planned communities in cities like Goodyear, Gilbert, and Peoria will remain hotspots for buyers seeking modern amenities and energy-efficient designs. Builders are likely to continue offering incentives in early 2025 to attract buyers.

3. A Focus on Sustainability and Technology

Energy-efficient homes and smart home technology will remain at the forefront of buyer preferences. Communities that embrace these trends will see higher demand throughout the year.

Welcoming 2025: A Time to Set Your Real Estate Goals

As we celebrate the start of a new year, it’s the perfect moment to plan for your next real estate move. Whether you’re looking to buy your dream home, sell a property, or invest in a growing market, the Phoenix metro area offers endless opportunities.

Contact Craig Bennett at Sotheby’s International Realty to discuss your 2025 real estate goals. With expert insights and personalized guidance, Craig will help you navigate the market with confidence and success.