As of January 2025, the Arizona real estate market has exhibited notable changes compared to January 2024, with distinct trends observed in both the East Valley and West Valley regions. Below is a comprehensive overview, including detailed insights into specific cities:
East Valley
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Inventory and Days on Market: In Mesa, the housing inventory stands at approximately 2.6 months as of January 2024, indicating a balanced market. The average days on market (DOM) in the Phoenix area, encompassing the East Valley, is around 35 days in early 2025, a slight increase from 28 days in early 2024.
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Median Prices: The median sales price in Mesa is $465,000 as of January 2024.
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Luxury vs. Median Market: Specific data on the luxury market in the East Valley is limited. However, the general trend indicates a modest appreciation in home values, suggesting a stable market across different price segments.
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Demographics and Job Growth: The East Valley continues to attract a diverse population, bolstered by employment opportunities in technology, healthcare, and education sectors. The region's growth is supported by ongoing investments in infrastructure and business development.
West Valley
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Inventory and Days on Market: The Phoenix Valley West area had 3 homes for sale in January 2025, a 25% decrease compared to December 2024.
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Median Prices: In Glendale, the median home sold price was $425,226 in January 2025, reflecting a 1.6% year-over-year increase.
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Luxury vs. Median Market: While specific luxury market data for the West Valley is not readily available, the overall increase in median prices suggests a healthy demand across various market segments.
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Demographics and City Growth: The West Valley is experiencing population growth due to its affordability and expanding amenities. The area is attracting young professionals and families, contributing to community development and economic expansion.
City-Specific Insights
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Peoria: The median home price reached $545,000 in January 2025, marking a 12.4% increase from the previous year. Homes typically remained on the market for 74 days, up from 56 days in January 2024.
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Glendale: The median home sold price was $425,226 in January 2025, reflecting a 1.6% year-over-year increase.
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Surprise: The market has shifted towards a more balanced state, providing increased bargaining power for buyers.
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Phoenix: The Greater Phoenix housing market is expected to remain stable with modest growth in 2025, driven by continued population and job growth.
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Chandler: Early 2024 data indicates median home prices around $535,000, with an average price per square foot of approximately $282.
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Gilbert: The median sold price for single-family homes in January 2025 was $575,000, a 4.2% decrease from the previous year. Properties averaged 73 days on the market, up from 55 days in January 2024.
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Mesa: Experienced a 10% increase in home values, indicating a strong market presence.
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Anthem: Specific data is limited; however, trends are expected to align with the broader Phoenix metropolitan area.
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Goodyear: The median home sold price was $481,202 in January 2025, a 0.7% increase from the previous year.
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Queen Creek: Saw an 8% increase in home values, reflecting a robust market.
Statewide Trends
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Home Prices: As of August 2024, Arizona's median home price was $442,900, reflecting a 1.3% year-over-year increase.
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Inventory Levels: There were 36,992 homes for sale in August 2024, a 26% increase compared to the previous year, indicating a shift towards a more balanced market.
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Days on Market: Homes in Arizona averaged 56 days on the market as of August 2024, a 14-day increase from the previous year, suggesting a slight cooling in market pace.
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Market Forecast: Home sales are expected to rebound in 2025, with projections indicating a 7% to 12% increase. The median sale price of previously owned homes is anticipated to reach $410,700, a 2% rise from the current year.
In summary, the Arizona real estate market in January 2025 shows signs of stabilization with modest price increases, a balanced inventory, and a slight extension in days on market. Both East and West Valley regions reflect these trends, supported by demographic growth and economic development.
