Phoenix’s housing market in 2025 is shifting and savvy Arizona realtors are taking note. With local wage growth soaring 9.3%, inflation down to just 0.3%, and home prices in the popular sub-$500K range declining 2.2% year-over-year, affordability is quietly improving without a dramatic drop in mortgage rates. Meanwhile, buyer sentiment is bouncing back, luxury contracts are up 30%, and listing activity is tightening as sellers pause or turn to rentals. This blog breaks down the key market trends, stats, and expert tips Arizona real estate agents need to guide both buyers and sellers through one of the most dynamic summers in recent memory.