2025 Housing Market Predictions from the Arizona Association of REALTORS

In 2024, Arizona’s real estate sector experienced steady momentum as population growth continued to drive demand while housing inventory remained tight.

But as 2025 unfolds, the Arizona Association of REALTORS presents its predictions, anticipating a market acceleration and a slight stabilization of interest rates.

Sindy Ready, a prominent real estate agent from Scottsdale, Arizona, states: “There’s usually a pause in activity during presidential elections; we’ve seen it in recent cycles, and 2024 was no exception. And although we’re not betting on major rate drops, a slight decline is likely.”

Shane Cook, who assumed the role of first vice president of Arizona REALTORS® and works at eXp Realty in Chandler, noted the pent-up demand generated in 2024 as buyers adjusted to higher interest rates. He also anticipates more transactions in 2025 but says the exact number may depend on how rates evolve.

The 2025 president-elect of Better Homes and Gardens Real Estate Grand View North in Flagstaff, Ms. Lisa Paffrath, also pointed out that housing prices will likely continue to rise, especially in northern Arizona.

According to Paul Baker, 2025 treasurer of RE/MAX Fine Properties in Scottsdale, in Maricopa County, homeownership remains the goal for most residents. Baker also foresees continued population growth in the region, with a majority of young buyers, accompanied by new construction and increased market activity.

Ready also mentioned a trend she is seeing more often: families moving in together.

Scott Drucker, CEO of Arizona REALTORS®, also commented that new housing and commercial developments remain critical for easing the housing shortage in Arizona. They will not only increase inventory but also generate jobs in fields like architecture and construction, which boost the economy.

Another key point in the housing market predictions for Scottsdale and Arizona overall is the shift in the workplace, which may also affect buyers and sellers.

On this topic, Lisa Paffrath also stated: “As more companies call their employees back to the office full-time, we could see more homes on the market in 2025 from workers looking to move closer to their jobs.”

For all these reasons, the recommendation is to consult a professional real estate agent to help you understand all the changing factors, from local trends to the latest updates on mortgage rates, inventory, and even foreclosure options.

Available foreclosures:

Phoenix: 321 homes available

Tucson: 176 homes available

Flagstaff: 64 homes available

Mesa: 199 homes available

Chandler: 88 homes available

By Elías DaSilva | May 27,  2025