Strength In Our Market
Metro Phoenix homeowners again saw their home equity increase in year-to-date numbers, with the median price of a single-family home matching the national average at $480,000. While the national median price remained flat, locally it increased by a slight 0.4% over 2024. Despite the increase in home prices, the housing affordability index improved from 69 to 71. This means that through October, 71% of the households could afford the median-priced home, up 2.9% from a year earlier.
“Year-to-date closed sales, pending sales, new listings and median sales price all increased,” said Christy Walker, board president of Phoenix REALTORS. “These data are indicators of the strength in the Phoenix market.”
In 2026, the Phoenix housing market is expected to continue its recovery. Residential real estate is stabilizing after the sharp swings of the early 2020s. Closed sales have increased from post-pandemic lows. Mortgage rates have steadied, giving buyers more room to negotiate. Inventory in the Valley is also beginning to rise, though slowly.
Behind the Valley’s stabilizing sales and moderating prices is a regional economy that continues to grow at a faster pace than our nation. Workforce and migration patterns are being influenced by Phoenix’s transformation into a semiconductor and advanced manufacturing hub. At the same time, buyers and sellers are still adjusting to higher borrowing costs, inflation pressures and a tightening consumer mindset.
