The Phoenix, AZ metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased by 1.5% year-over-year, reaching $472,990. This modest rise indicates a steady demand for homes despite broader market fluctuations.

Interestingly, the Median List Price has remained virtually unchanged with a negligible year-over-year decrease of 0.0%, standing at $499,999. This stability in list prices suggests that sellers are maintaining their pricing expectations, even as the market adjusts.

The median Price Per Square Foot has seen a 2.0% increase, now at $268.15, while the Median List Price per square foot has risen by 3.2% to $278.80. These figures highlight a continued appreciation in property values, reflecting sustained buyer interest and competitive pricing strategies.

In terms of sales activity, the number of Homes Sold has increased by 2.4% year-over-year, totaling 5,393 units. However, Pending Sales have experienced a slight decline of 0.2%, indicating a potential cooling in future transactions. New Listings have surged by 10.5%, reaching 8,422, which may provide more options for prospective buyers and contribute to the increased inventory levels.

Inventory has expanded significantly, with a 30.0% year-over-year increase, now at 23,405 homes. This rise in inventory is accompanied by a substantial 90.0% increase in Months of Supply, now at 4.3 months. These metrics suggest a shift towards a more balanced market, offering buyers more choices and potentially easing upward pressure on prices.

The Median Days on Market have increased by 11.0% to 65 days, indicating that homes are taking longer to sell compared to the previous year. This trend may be attributed to the growing inventory and the stabilization of list prices.

The average sale to list ratio has slightly decreased by 0.1%, now at 98.1%, while the sold above list ratio has declined by 0.8% to 14.3%. These changes suggest that buyers are gaining more negotiating power, leading to fewer homes selling above the asking price.

Price Drops have increased by 4.1%, now affecting 34.2% of listings. This rise in price reductions may be a response to the increased inventory and longer time on the market, as sellers adjust their expectations to attract buyers.

Finally, the percentage of homes going off the market in two weeks has decreased by 4.3%, now at 25.1%. This decline further underscores the trend of homes taking longer to sell, as buyers have more options and are potentially more discerning in their purchasing decisions.

Overall, the Phoenix metro area housing market in February 2025 reflects a dynamic environment with both opportunities and challenges for buyers and sellers. The increase in inventory and New Listings, coupled with stable pricing, suggests a market that is gradually moving towards equilibrium, offering a more balanced landscape for all participants.