What It Takes to Sell a Home in Phoenix in 2025
In this report: why it has become harder to sell a home in Phoenix, and what sellers can do to succeed in 2025.
The Phoenix-area housing market has cooled over the past couple of years, with buyers gaining more negotiating leverage.
But some sellers haven't accepted or adjusted to this new reality.
As a result of this disconnect, many properties listed for sale in the Phoenix area end up sitting on the market for months without an offer.
This report explains how the market has changed, what it means for sellers, and how sellers can succeed during the second half of 2025.
Some Sellers Aren't Listening to the Market
The housing market provides a lot of feedback. It can tell us about the current supply and demand situation, activity level, negotiating dynamics, and other key details.
But only if we pay attention.
And judging by the length of time some homes are lingering on the market, not all sellers are paying attention to these trends.
Or else they're ignoring them.
According to housing economist Danielle Hale:
"The rising share of price reductions suggests that a lot of sellers are anchored to prices that aren't realistic in today's housing market. Today's sellers would be wise to listen to feedback they are getting from the market."
Current Headwinds Working Against Sellers
Here are the biggest challenges that Phoenix metro area home sellers will face during the second half of 2025.
1. Falling home prices
According to the latest data from Zillow, the median home price for the Phoenix-Mesa-Scottsdale metro area declined by around 2% over the past year.
That was one of the most significant declines among the nation's 50 largest metros.
Falling home prices make buyers nervous, and rightfully so. No one wants to purchase an asset that's currently depreciating. This trend has reduced demand from buyers and made them less willing to pay the full asking price.
Related: Phoenix home price forecast into 2026
2. Significant inventory growth
Housing market inventory in the Phoenix area has increased significantly over the past couple of years. This means there are more homes available for buyers to choose from, a trend that has shifted the market in a buyer-friendly direction.
Kara Ng, a senior economist at Zillow, recently told KTAR News:
"The number of homes on the market is up almost 38% from last year in Phoenix, and that's almost double what we see nationally."
With more listings to compete with, sellers will have to work harder to get the attention of prospective buyers. (More to follow on that.)
3. Economic uncertainty
Broader economic worries in 2025 are dampening buyer sentiment in the Phoenix area and elsewhere across the U.S.
Concerns about trade wars, inflation, and the threat of another recession have made many would-be buyers hesitant to move forward.
In one national survey, 81% of respondents said they were worried about tariffs or trade wars, and 70% feared a housing market crash in 2025​.
Similarly, about one‑third of Americans planning big purchases say they are delaying a home purchase because of economic uncertainty​.
Industry reports note that despite lower mortgage rates, some home buyers remain hesitant.
For example, a Redfin housing report found home tours are slowing and pending sales are down, as buyers become "ultra‑cautious" amid high costs and economic uncertainty​.
How to Sell a Home in Phoenix in 2025
Here are specific steps and strategies Phoenix-area home sellers can use to increase their chances of a quick home sale in the second half of 2025.
1. Price your home realistically from the start.
In a market with falling prices and increased inventory, overpricing can be a major deterrent. Work with an experienced agent to conduct a comparative market analysis (CMA). Price your home competitively based on recent comparable sales, not on what you hope to get or what your neighbor sold for last year. If you don't receive offers, be prepared to lower the price.
2. Enhance curb appeal and interior presentation.
With more homes on the market, yours needs to stand out. Invest in professional landscaping, a fresh coat of paint (neutral colors are best), and ensure the entryway is welcoming. Inside, declutter and de-personalize the space so buyers can see themselves living there.
3. Invest in high-quality marketing.
Professional photography and videography are no longer optional. They're a must. Ensure your online listing is compelling, with high-resolution photos, a virtual tour, and a detailed description that highlights your home's best features and any recent upgrades.
4. Be flexible with showings.
Phoenix-area home buyers have more properties to choose from these days. So you might have to go above and beyond to bring them into yours. Accommodate showing requests as much as possible, even if it's inconvenient. The more buyers who see your home, the better your chances of receiving an offer.
5. Understand how buyer sentiment has changed.
Many buyers are nervous due to falling prices and economic uncertainty. So be prepared for negotiations and don't be offended by initial offers that may be lower than your asking price.
6. Consider offering incentives.
Incentives can make your home more attractive to buyers, which is critical in a slower market. You could offer to cover a portion of the buyer's closing costs, pay for a home warranty, or include certain appliances or furnishings. Discuss these options with your real estate agent to see what makes sense for your situation.
7. Tell buyers what makes your property unique.
Does your home have energy-efficient features, a newly renovated kitchen, a desirable school district, or unique architectural details? Make sure these selling points are prominently featured in your marketing materials and during showings.
Bottom line: It's a whole different ballgame for Phoenix-area sellers these days, and it requires a different approach from what might have worked in the past.