The Arizona housing market in February 2025 presents a dynamic landscape with several key indicators showing varied trends. The Median Sales Price stands at $455,500, reflecting a modest year-over-year increase of 0.5%. Similarly, the Median List Price is $491,100, also up by 0.5% compared to the previous year. This stability in pricing suggests a balanced market where demand and supply are relatively aligned.

When examining the Price Per Square Foot, the median price is $262, marking a 2.7% increase from last year. The Median List Price per square foot is $275, which has risen by 4.0% year-over-year. These figures indicate a stronger appreciation in property values on a per-square-foot basis, suggesting that buyers are willing to pay more for space, possibly due to limited availability of larger properties.

In terms of sales activity, 7,551 homes were sold, showing a slight increase of 0.3% from the previous year. Pending Sales are at 10,249, up by 0.4% year-over-year, indicating a steady demand in the market. New Listings have surged by 8.6%, totaling 11,677, which contributes to the increased inventory of 33,385 homes, a significant 25.9% rise from last year. This increase in inventory has led to a substantial 90.0% rise in the Months of Supply, now at 4.4 months, suggesting a shift towards a more buyer-friendly market.

The Median Days on Market have increased by 10.0% to 67 days, indicating that homes are taking longer to sell. This could be attributed to the higher inventory levels, giving buyers more options and time to make decisions. The average sale to list ratio remains unchanged at 98.1%, while the percentage of Homes Sold above list price has decreased by 1.1% to 13.8%, reflecting a slight cooling in competitive bidding.

Price Drops have become more common, with 32.3% of listings experiencing reductions, up by 4.8% from last year. This trend suggests that sellers are adjusting their expectations in response to the increased inventory and longer selling times. Additionally, the percentage of homes going off the market within two weeks has decreased by 4.0% to 25.8%, further indicating a more deliberate pace in the market.

Overall, the Arizona housing market in February 2025 is characterized by stable pricing, increased inventory, and a more measured pace of sales. While demand remains steady, the rise in supply and longer selling times suggest a shift towards a more balanced market, offering opportunities for both buyers and sellers to navigate the evolving landscape.