Tempe, AZ Real Estate Market Update - January 2025

If you’re keeping an eye on the Tempe housing market, you’ll want to pay attention to the latest data. The Tempe residential real estate market has seen some significant shifts in early 2025, making it a dynamic time for both buyers and sellers.

Let’s break down the numbers and what they mean for you.

Market Trends: Key Takeaways

The latest stats reveal a mix of opportunities and challenges depending on whether you’re looking to buy, sell, or invest in real estate. Here are the key market movements:

• Active Listings: 📈 Up 77.7%

  • More homes are on the market compared to last year, giving buyers more choices.

  • What this means: Increased inventory can slow price growth, providing more room for negotiations.

• Sold Listings: 📈 Up 28.9%

  • More homes are selling, indicating strong buyer demand.

  • What this means: If you’re selling, it’s still a good time, especially with proper pricing and marketing.

• Months of Supply: 📈 Up 37.8% (Now at 3.17 months)

  • This means the market is moving toward balance but is still in a seller’s market.

  • What this means: Buyers have slightly more leverage than before, but demand is keeping competition healthy.

• Median Sale Price per Square Foot: 📈 Up 2.7% ($291.47 per sq ft)

  • Home values continue to increase, though at a slower rate.

  • What this means: Sellers can still expect good returns, but price sensitivity is rising.

• Median Days on Market: ⬇️ Down 19% (Now at 42 days)

  • Homes are selling faster than last year.

  • What this means: A well-priced, well-marketed home won’t sit long on the market.

What This Means for Buyers

With more homes available and longer supply, buyers have more options than before. However, home values are still climbing, so waiting too long could mean paying more later. Mortgage rates also play a crucial role—securing a lower rate now could save thousands in the long run.

Buyer Tips:

✅ Get pre-approved to move quickly on the right home.

✅ Look for homes that have been on the market longer for negotiation power.

✅ Work with an experienced Tempe real estate agent to identify hidden opportunities.

What This Means for Sellers

Although inventory is rising, buyer demand remains strong, and homes are selling faster than last year. However, pricing correctly is more critical than ever to attract serious buyers.

Seller Tips:

✅ Stage your home and use professional photography for maximum appeal.

✅ Price competitively—overpricing can lead to longer days on market.

✅ Leverage strategic marketing (social media, local outreach) to attract motivated buyers.

Final Thoughts: Is Now a Good Time to Buy or Sell in Tempe?

✔ For buyers: There are more choices, and the market is shifting slightly in your favor.

✔ For sellers: Demand is still strong, and with the right strategy, your home can sell quickly and competitively.

The Tempe market is active and evolving, making it crucial to have a real estate expert guiding you. Whether you're buying, selling, or investing, I can help you navigate the market and make the best decisions for your goals.

📩 Contact me today for a customized strategy to help you succeed in Tempe’s real estate market!