By Sean Colón
If you're a real estate agent in Arizona, 2025 is shaping up to be a pivotal year—and one packed with opportunity if you're paying close attention. Zillow’s latest forecast paints a mixed, but ultimately optimistic picture: while national home values are expected to dip by 1.9% this year (a sharp reversal from the previously predicted 0.6% gain), existing home sales are set to rise to 4.2 million—up 3.3% from 2024. That’s big news for Arizona realtors who know how to leverage data into strategy. Why the shift? A combo of rising inventory and mortgage rates still hovering around 6.5% by year-end is pushing prices down and opening the doors for a more balanced market. This gives buyers breathing room and sellers a much-needed reality check—cue the record-level price cuts across markets, including key areas like Phoenix, Mesa, and Scottsdale.
“This market isn’t falling—it’s shifting.”
Spring is bringing a temporary surge in buyer activity, but this isn’t just seasonal fluff. With improved affordability likely on the horizon if mortgage rates cool further, 2025 could close strong—especially in Greater Phoenix where supply is finally outpacing pent-up demand. Smart agents are advising sellers to list competitively and prep homes meticulously, while encouraging buyers to take advantage of increased choices and slower negotiation timelines. The rental market is shifting, too: Zillow expects single-family rents to climb 3.1%, while multifamily lags behind at 2.1%. With multifamily construction slowing and affordability still a pain point, more renters are eyeing single-family homes. For Arizona realtors, this is a golden window to target rent-fatigued tenants looking for a foothold into homeownership, especially in suburban hotbeds like Queen Creek and Peoria.
Whether you’re working with buyers seeking affordability, investors chasing rental yield, or sellers trying to reposition in a changing market, 2025 is a year that rewards agility, expertise, and hyper-local strategy. The headlines may talk of price drops, but for Arizona realtors? This market isn’t falling—it's shifting. And with the right moves, it’s shifting in your favor.
By the way, I help realtors improve their online and social media presence by providing beautiful photos of their listings. That is why I’ve created this FREE HOME PREP LIST for your clients to help your listings look their best. Feel free to share.