Why is Arizona’s Housing Market Slowing Down This Summer?

By Ron Palmer

Ron’s expertise has earned him a spot among the top 50 realtors in the Valley. Happily married for 38 years, Ron is a proud parent and grandparent and holds CDPE, CIAS, and CNE designations, reflecting his dedication to client success.

If you’ve been watching the market and wondering why things feel slow, you’re not alone. I’ve been thinking about it a lot lately, and oddly enough, my garden gave me a little clarity. Seeing how everything shifted from spring to summer has reminded me a lot of what’s happening in real estate. In spring, my garden was thriving, but now, with the heat, I’ve had to trim back my plants because they’re not producing like they were.

The housing market feels the same. It’s not dead, but it’s definitely slowed, and we’re in a bit of a trimming phase ourselves. With that in mind, let’s talk about what’s really going on in the 2025 summer market.

Interest rates and pricing. The market feels slow right now, and a big part of that is interest rates. They’ve been sitting between 6.8% and 7.1%, and every time they move, buyers hit pause. Everyone’s waiting for rates to drop, but so far, that drop just isn’t happening.

At the same time, home prices aren’t dropping much either. They’re trending down slowly, but not enough to make a big impact. A lot of that comes down to overpricing. Sellers are still listing too high, which means homes sit longer and usually end up with price cuts anyway. It’s the same with my garden, where I’m seeing new growth after trimming things back. The market is doing the same.

Buyer opportunities. If you’ve been thinking about buying, this might actually be one of the best times to do it. We’re in a buyer’s market right now, which means you’ve got leverage. You can negotiate on price, ask the seller to help buy down your interest rate, and avoid the bidding wars we’ve seen in the past.

This is especially important for first-time buyers, who’ve been priced out for a while and finally have a chance to get in. The big thing to keep in mind is this: when interest rates finally drop, the market will likely take off again. Buying now gives you the chance to refinance later. In the meantime, you’re already building equity while prices are still more manageable.

Selling in a buyer’s market. If you’re thinking about selling this summer, it can be a good time, but only if you have a compelling reason to move. In a buyer’s market like this, success comes down to strategy. To sell within a 15 to 45-day window, your home needs to be properly prepped, which means fresh paint, clean flooring, and any basic updates that make it feel move-in ready.

Just as important is pricing. Most sellers feel the urge to price high to leave room for negotiation, but that approach often backfires. If you price your home right from the start, you’re more likely to get strong offers and even make more in the end.

If you don’t know where to start, we can guide you through that entire process, including where to invest money so you get it back when you sell.

I recently helped a client in an active adult community where sales usually slow way down in the summer because of the heat. We dropped his price by $10,000, and within three days, we had multiple offers. Now he’s under contract and on track to close in August.

It just goes to show that when you price it right, even a slow market can move fast.

You can’t change your location, but if you nail the home’s condition and pricing, you can absolutely sell in this market. If you’re buying, you’ve got more options and room to negotiate than we’ve seen in a long time.

We’ve sold over 700 homes, and we know how to help you make the right move, whether it’s prepping, pricing, or negotiating the best deal possible. If you need any assistance or want to know more about the market, you can call me at 602-750-0755 or send an email to customercare@soldwithresults.com. Let’s talk and see what’s possible now.