The Arizona real estate market is kicking off 2025 with rising inventory, strong buyer incentives, and shifting demand across Greater Phoenix. With mortgage rates hovering around 7.25% and supply reaching its highest January levels since 2016-2017, realtors must stay ahead of market trends to navigate buyer and seller expectations. While the luxury market remains hot—driven by surging high-end sales—first-time homebuyer hotspots like Surprise, Mesa, and Chandler are seeing competitive activity thanks to builder incentives. Meanwhile, the condo market faces unique challenges with rising HOA fees and insurance costs. Whether you're helping clients buy or sell, understanding the latest market conditions will give you a competitive edge in Arizona real estate this season.