The Tempe real estate market is shifting, and if you’re considering buying or selling a home, it’s essential to stay informed about the latest trends. February 2025 data shows some major changes compared to last year, including a significant increase in active listings and months of supply, signaling a potential shift toward a buyer’s market.
Key Market Stats – February 2025
Active Listings: Up 87.6% (349 homes vs. 186 in February 2024)
Sold Listings: Down 14.3% (102 homes vs. 119 in February 2024)
Months of Supply: Up 118.9% (3.42 months vs. 1.56 months in February 2024)
Median Price per Square Foot: Up 3.8% ($310.73 vs. $299.32 in February 2024)
Median Days on Market: Up 9.8% (45 days vs. 41 in February 2024)
What This Means for Buyers
With inventory levels nearly doubling and months of supply up 118.9%, buyers have more options and more negotiating power. While home prices per square foot have increased slightly (3.8%), the rise in supply could slow down future appreciation, making now a great time to buy before prices stabilize or decline.
What This Means for Sellers
If you’re selling a home in Tempe, the increase in inventory means more competition. Homes are sitting on the market longer, and buyers have more leverage. Pricing your home competitively and ensuring it stands out through staging and marketing will be key to attracting serious buyers.
Is Tempe Now a Buyer’s Market?
The increase in inventory, supply, and days on market suggests Tempe is shifting toward a buyer’s market. While it hasn’t fully transitioned yet, if these trends continue, buyers will gain even more leverage in negotiations. Sellers should act now before the market cools further.
Final Thoughts
If you’re a buyer, this could be your opportunity to find the right home without the intense competition of previous years. If you’re a seller, working with an expert real estate agent to price and market your home effectively is more important than ever.
Thinking of buying or selling in Tempe? Let’s create a strategy that works for you! Contact me today for a personalized market analysis.
