Inventory Up, Prices Down? July Housing Recap
The national housing market is continuing its slow shift toward a buyer-friendly environment, with inventory growing for the 21st straight month. But while buyers are gaining options, homes are lingering on the market longer—and sellers are starting to feel it.
Let’s break down the latest data from Realtor.com, with a special spotlight on what’s happening here in Arizona.
📈 National Snapshot: Inventory Up, Activity Down
Active Listings: Up 24.8% year-over-year, surpassing 1.1 million homes for sale for the third consecutive month.
New Listings: Increased 7.3% YoY, but declined month over month for the third straight time.
Pending Home Sales: Down 3% YoY, showing softer buyer demand.
Median Time on Market: Homes now sit for 58 days—7 days longer than last year and above pre-pandemic norms.
Median List Price: $439,450, up just 0.5% YoY—flat since mid‑2023.
Price Reductions: 20.6% of listings had price cuts—slightly down from June, the first monthly decline in 2025.
In short: more homes to choose from, but buyers are taking their time—and sellers are starting to respond with price adjustments or delistings.
🌵 Arizona Market Watch: Cooling in the Desert
🔍 Inventory & Listings
Arizona is one of just 12 states where inventory has rebounded above pre-pandemic levels, particularly in Phoenix, where there were 18,157 active listings in July. That’s down slightly from June but still significantly higher than last year.
💰 Prices Holding—But Softening
Phoenix Median List Price: $505,000, down 3.8% YoY and also 3.8% below July 2022 levels.
Median Sales Prices: Hover around $460,000, with little movement month over month.
Time on Market: Phoenix homes took an average of 69.5 days to sell—11 days longer than the national average.
📉 Price Cuts and Delistings on the Rise
30.8% of Phoenix listings had price reductions—10% higher than the national average.
Delistings in June surged—Phoenix saw 37 delistings per 100 new listings, up from 30 in May.
Many sellers are opting to pull listings entirely rather than reduce their price—especially those still anchored to 2022 peak values.
🧾 Institutional Buyers Backing Off
Institutional buyers are also easing off the gas:
In Q1 2025, they accounted for just 7.5% of Phoenix home purchases—down from 8.2% a year ago.
📊 Quick Comparison: National vs. Phoenix
💡 What It Means for You
Whether you're buying, selling, or watching the market from the sidelines, here's what to keep in mind:
Buyers: You have more choices, more time, and more negotiation power than at any time since 2020. But don’t sleep on the homes that check all your boxes—especially in tighter Arizona submarkets.
Sellers: Pricing strategy is everything. Homes priced realistically are still moving, while overpriced listings are sitting—or disappearing from the market entirely.
Agents & Partners: Stay sharp and local. The Arizona market is diverging from national trends in key ways—understanding the nuance is the key to winning clients.
🐼 Ready to Make a Move?
Whether you're house-hunting, planning to sell, or advising clients—I'm here to help you navigate the changing tides of Arizona real estate.
📞 Let’s strategize your next step.
