Mortgage rates stay volatile as Phoenix home prices stabilize near $455,000 and inventory continues to rise across the Valley
As seen on AZ Arizona’s Family 3TV, April 2025.
Rising inventory and volatile mortgage rates are shaping buyer and seller decisions across the Phoenix housing market.
The Phoenix housing market continues to show signs of stability. Home prices remain steady, even as mortgage rates move higher and more homes hit the market.
Many buyers are still asking the same question: should they buy now or wait?
According to Bankrate, the average 30-year fixed mortgage rate is 6.86%. That rate is slightly higher than it was a week ago.
Mortgage Rates Continue to Move
Mortgage rates remain one of the biggest factors affecting buyers.
Trevor Halpern, CEO of Halpern Residential, says rates have been changing often.
“Mortgage rates are bouncing. They’re all over the place. I mean, inner day, we’re seeing changes,” Halpern said.
As a result, many buyers are watching rates closely before making a move.
Halpern says it is difficult to predict where rates will go next.
“Rates are very volatile right now, and it’s hard to predict on a long term basis where mortgage interest rates are going to go.”
More Homes Are Available
While rates remain elevated, housing inventory continues to grow.
Halpern says both demand and supply are increasing.
“Buyer demand is still increasing, and the number of listings is still increasing whether that continues is to be determined based on what we’re seeing out there in the economy,” he said.
MLS data supports that trend.
There were nearly 25,000 active listings across the Phoenix area in March.
That is about 8,000 more homes for sale than the same time last year.
Phoenix Home Prices Remain Stable
More inventory has not led to major price declines.
The median home sales price in the Phoenix area reached $455,000 in March.
That is about $10,000 higher than a year ago.
Halpern believes prices will stay relatively stable in the months ahead.
“I think we’re in a position where prices are going to remain pretty flat. Maybe we’ll see him go up a little bit, maybe we’ll see them go down a little bit,” he said.
Advice for Buyers
For buyers, preparation is important.
Market conditions can change quickly. Therefore, financial planning matters more than ever.
Halpern encourages buyers to have a solid backup plan before purchasing a home.
“You want to be positioned really well. You want to know that if you are making a move in an environment where there’s some speculation, there’s a little uncertainty, you want to have a backstop,” he said.
He continued:
“You want to make sure that you’ve got reserves. You want to make sure that you’re not stepping into something that you can’t handle should the economy continue to be volatile.”
Advice for Sellers
Meanwhile, sellers face a more competitive market than they did in recent years.
More homes on the market means buyers have more options.
Because of that, presentation matters.
“You have to say yes,” Halpern said.
“When people want to get in, you have to maintain your home, make your beds, do the dishes, get everything ready before you leave for the day, to make sure that your home is positioned really well when you do get that opportunity.”
For sellers, being flexible and keeping a home show-ready can make a big difference.