The Greater Phoenix Area

Though the changes were small, there was good news for sellers on both supply and demand compared to last month. We saw a significant number of cancellations and expirations at the end of the second quarter, resulting in a reduced supply as we begin the third quarter.

We enjoyed one extra working day in June 2025 compared to June 2024, so sales going up 4.9% is about par for the course, rather than a win. However, listings under contract are up compared to a year ago as buyers react to a slight reduction in mortgage rates. This is genuinely good news. They may also be reacting to falling asking prices as buyers inject more realism into their listings.

Closed prices are down sharply from May when measured by average $/SF and are now slightly lower than last year. The median sales price is the same as last year but down 1.1% from last month.

If current trends continue, then it could well start to rise again. However, the increased demand is fragile and might disappear if mortgage rates head back up towards 7% again. Also, the reduction in supply is largely due to sellers giving up, which is not as positive a sign as increased closing rates. Many of these expired and cancelled listings are likely to come back again in the fourth quarter.

The high-end of the market remains strong, but it tends to be much less active during the summer months.