What to Watch in Arizona Real Estate as We Enter the Last Quarter of 2025

As 2025 winds down, Arizona’s housing market enters the final quarter with a renewed sense of balance and steady opportunity. After several years of rapid price growth, fierce bidding wars, and low inventory, the market has shifted into a healthier, more sustainable rhythm. While conditions vary by price point and community, most indicators show stability and long-term strength, especially for buyers and for sellers who price and prepare strategically. If you are thinking about making a move before the new year, here is what to watch in Arizona real estate as we step into Q4, and why the outlook remains encouraging.

A More Balanced Market Creates Opportunity

One of the biggest themes of late 2025 is balance. Inventory levels across many parts of the Phoenix metro area have risen slightly compared to last year, giving buyers more choice and breathing room. At the same time, pricing has remained stable rather than declining, proving that demand for Arizona living is still very strong.

Some price points, particularly entry-level and mid-range homes, have experienced small adjustments, which is good news for buyers who have been waiting for more affordability. In higher-demand areas, however, prices are holding steady or posting modest year-over-year gains. This tells us that Arizona remains an attractive state for relocation, retirement, investment, and second-home ownership.

For buyers, fall is historically one of the best times to shop. Many move-up buyers and families pause their home search during the school year and holidays, leaving more room for those who are ready to make a strategic purchase. Homes also tend to spend a little more time on the market between October and December, which can translate into negotiation opportunities, credits, and more favorable terms.

Price Stability Shows Long-Term Strength

Despite shifts in activity and pace, Arizona home values continue to demonstrate resilience. In many cities across Maricopa County, year-over-year pricing remains positive. Even areas that saw slight month-to-month adjustments still show solid annual appreciation, signaling confidence in the long-term trajectory of the market.

This pattern is especially noticeable in lifestyle-driven communities, master-planned neighborhoods, and suburbs with strong amenities. These areas typically draw committed buyers who value quality of life, outdoor living, great schools, and low-maintenance desert landscapes.

For buyers, this creates reassurance that the market is not heading toward decline. For sellers, it means well-prepared homes still command strong prices when aligned with current market conditions.

Days on Market Lengthen, but That Is a Good Thing

Throughout 2021 to 2023, homes in Arizona often sold within days or even hours of hitting the market. While those conditions benefited sellers in the moment, they were not sustainable. In late 2025, the average days on market has expanded into a healthier range, roughly six to ten weeks depending on price point and community.

This is good news for both sides:

• Buyers now have time to compare homes, perform due diligence, and make confident decisions.
• Sellers can prepare more strategically, and high-quality listings stand out even more against the backdrop of increased selectivity.

This shift also supports stability, slowing down price spikes and allowing market fundamentals to guide value.

Mortgage Rates Encourage Creativity, Not Caution

Mortgage rates throughout 2025 have been higher than the historic lows seen earlier in the decade, and while this impacts monthly payments, it has also opened doors. Higher rates often mean less buyer competition and more opportunities for rate buy-downs or seller concessions, especially in the fall season.

Buyers entering the market now can often negotiate closing costs or seller credits that were unheard of in recent years. Sellers who remain flexible can reach a wider pool of qualified buyers, reducing time on market and strengthening offers.

And for long-term homeowners, refinancing remains a future option if rates decline.

Investment and Second-Home Demand Stay Strong

Arizona continues to attract investors and second-home buyers thanks to its climate, tourism industry, and quality-of-life appeal. Markets like Scottsdale, Fountain Hills, Mesa, Flagstaff, and parts of the West Valley remain attractive to buyers looking for vacation homes or long-term rentals.

Even with regulatory changes in some areas regarding short-term rentals, the state’s popularity for snowbirds, remote workers, and retirees preserves consistent demand.

Spotlight on Fountain Hills: A Market That Shines in Any Season

Fountain Hills continues to be one of Arizona’s strongest and most unique real estate markets as we approach the end of 2025. Known for its spectacular mountain views, scenic desert landscape, and the world-famous fountain, the community attracts buyers seeking peace, luxury, and space.

In September 2025, the median sale price in Fountain Hills reached 745,000 dollars, representing an increase of about 4 percent compared to last year. The median listing price in the 85268 zip code was $759,000 during the same period. Homes in the area spent an average of 68 days on the market, which is slightly longer than the year prior, giving buyers more time to explore options without diminishing value for sellers.

Forty-three homes sold this September compared to forty-six sales during the previous year, showing a stable and selective market. Across all price points, Fountain Hills continues to offer long-term appeal thanks to its walkable parks, community events, mountain vistas, and quieter lifestyle compared to the busier Phoenix and Scottsdale corridors. Whether you are buying or selling, it remains one of the most desirable places to make a move in the Valley.

What to Watch and Why It’s Good News

As Arizona enters the final stretch of 2025, here are the positive trends to keep an eye on:

• Stabilized pricing: Encourages both confidence and sustainability.
• More inventory: Offers choice for buyers and competition that keeps sellers motivated.
• Balanced pace: Creates room for negotiation and proper due diligence.
• Strong lifestyle demand: Especially in communities like Fountain Hills, Scottsdale, and Gilbert.
• Seasonal timing: Q4 historically brings motivated buyers, relocation clients, and year-end opportunities.

The Takeaway

Whether you are planning to buy or sell this fall, Arizona’s real estate market offers more clarity, choice, and long-term stability than we have seen in several years. With balanced conditions, steady pricing, and robust demand in key communities, the final quarter of 2025 gives both buyers and sellers the chance to make well-timed, strategic decisions.