Arizona’s housing market in 2025 shifted away from the chaos of the boom years—bringing buyers more options, sellers more competition, and home prices under pressure heading into 2026.
What Happened in Arizona’s Market in 2025?
If 2021 and 2022 were the “seller celebration years,” then 2025 was the year Arizona real estate finally started acting like a normal market again—with one big twist: inventory rose faster than demand.
According to the Reventure Home Price Forecast Report (Feb 2026), Arizona ended 2025 with:
- Current home value: $417,121
- Home Price Forecast Score: 37/100
- 12-month forecast: -3.7% projected price decline
- Home prices already down: -2.8% year-over-year
- Homes sitting longer: 72 days on market
- Inventory surplus: 40.5% above long-term norms
- Mortgage rates around: 6.19%
This data paints a clear picture: Arizona in 2025 became a market with more supply than buyers could absorb quickly, setting the stage for moderate price softness going into 2026. Arizona February 2026 Forecast …
The Numbers That Defined Arizona in 2025
1. Arizona Home Sales in 2025 (Monthly Total)
Here are the 2025 Arizona home sales totals you provided:
- Jan: 6,263
- Feb: 7,636
- Mar: 9,078
- Apr: 9,582
- May: 9,366
- Jun: 8,792
- Jul: 8,311
- Aug: 7,968
- Sep: 8,135
- Oct: 8,051
- Nov: 6,983
- Dec: 8,237
Total Home Sales in 2025: 98,402
That’s nearly 100K total closings statewide, with peak activity in spring and early summer—very typical seasonality for Arizona.
But notice something important:
Sales dropped hard in November, then rebounded in December, showing buyer hesitation and affordability fatigue.
2. Homes For Sale Inventory in 2025 (Monthly Total)
Your provided “For Sale” inventory totals:
- Jan: 24,365
- Feb: 26,173
- Mar: 28,031
- Apr: 30,084
- May: 31,224
- Jun: 30,401
- Jul: 29,089
- Aug: 27,384
- Sep: 27,635
- Oct: 29,651
- Nov: 29,764
- Dec: 27,473
Average Inventory in 2025: ~28,940 homes listed
Highest Inventory Month: May (31,224 homes for sale)
This is huge because it confirms exactly what the Reventure report warned: inventory in Arizona is no longer tight. Arizona February 2026 Forecast …
Why the Arizona Market Shifted in 2025
Inventory Rose Faster Than Buyers Could Keep Up
The Reventure report highlights that Arizona inventory finished 2025 at 27,473 homes for sale, which is 40.5% above the seven-year average (19,540). Arizona February 2026 Forecast …
That means sellers weren’t competing with 2 houses anymore.
They were competing with 20 houses in the same subdivision.
Prices Slowed, Then Started Sliding
Home values declined from $429,364 down to $417,121, a -2.8% annual drop by December 2025. Arizona February 2026 Forecast …
That’s not a crash—but it’s a meaningful signal that Arizona is no longer in appreciation mode.
Days on Market Increased
Homes sat for about 72 days, which is above long-term norms, meaning properties took longer to sell and buyers had time to negotiate. Arizona February 2026 Forecast …
Translation:
2025 was the year buyers stopped rushing.
Mortgage Rates Stayed High Enough to Slow Demand
Arizona ended 2025 with rates around 6.19%, still expensive compared to pre-pandemic years. Arizona February 2026 Forecast …
Even though rates dipped slightly from 6.72% the year prior, affordability remained a major challenge.
Arizona Housing Market Mood in 2025
This Was Not a Seller’s Market
The overall market score from Reventure was 37/100, pointing toward a moderately declining environment, and forecasting an additional -3.7% price drop over the next 12 months. Arizona February 2026 Forecast …
That score places Arizona closer to buyer-friendly territory, especially compared to the overheated peak years.
What Buyers Should Know (2025 Takeaways)
Buyers Had Leverage Again
With inventory rising and days on market climbing, buyers gained negotiating power. This is the kind of environment where buyers can ask for:
- seller credits
- repair requests
- price reductions
- longer inspection windows
More Choices = Less Panic
With inventory consistently near 27K–31K homes, buyers were no longer fighting for scraps.
What Sellers Should Know (2025 Reality Check)
Pricing Too High Became a Fast Way to Get Ignored
The report showed price cuts at 21.5% of listings in December 2025. Arizona February 2026 Forecast …
That’s a major indicator that sellers were adjusting expectations.
Even if that number is slightly below historical norms, it still shows sellers were under pressure.
2025 Was a Competition Market
If your home wasn’t staged, updated, or priced correctly—it sat.
Looking Ahead: What 2025 Set Up for 2026
The most important message from the forecast report is this:
Arizona is expected to see moderate home price declines moving into 2026, driven mainly by:
- oversupply (inventory surplus)
- slowing price momentum
- longer selling timelines
Reventure’s forecast calls for -3.7% home price change over the next 12 months. Arizona February 2026 Forecast…
Final Summary: Arizona in 2025 Was a Transition Year
Arizona’s 2025 housing market can be summed up in one sentence:
More homes were listed than the market could absorb quickly, leading to slower sales momentum and mild price pressure.
With 98,402 total home sales and inventory consistently near 30,000 homes for sale, the market moved into a more balanced (and in some cases buyer-favored) environment.
And based on the Feb 2026 forecast report, Arizona’s home prices may continue trending downward moderately, with a projected -3.7% price change expected over the next year.
