The State of Phoenix Metro’s Residential Real Estate Market & Today’s Interest Rates: July 2025 Update

The summer sun is blazing over the Valley of the Sun, and so is the Phoenix metro real estate market. If you’re wondering what’s happening with home prices, inventory, and interest rates right now, you’re not alone. Let’s take a friendly stroll through the latest trends and what they mean for buyers and sellers in July 2025.

Market Snapshot: Hot, but Not Overheated

The Phoenix metro area—including Scottsdale, Tempe, Chandler, and Mesa—continues to attract newcomers with its strong job market and sunny lifestyle. While the frenzy of the last few years has cooled a bit, demand remains steady. Inventory has ticked up slightly compared to last summer, giving buyers a little more breathing room. However, well-priced homes—especially in desirable neighborhoods—are still moving quickly, often within days.

Today’s Interest Rates: Where Do We Stand?

As of July 2025, average 30-year fixed mortgage rates in the Phoenix area are hovering around 6.2% to 6.5%. While higher than the historic lows of 2021, these rates are in line with national averages and reflect the Federal Reserve’s ongoing efforts to keep inflation in check. For many buyers, locking in a rate now—before any potential future hikes—remains a smart move.

Tips for Buyers

• Get Pre-Approved: With competition still present, having your financing lined up shows sellers you’re serious and ready to act.
• Be Flexible: Consider expanding your search to up-and-coming neighborhoods where you may find better value.
• Don’t Skip Inspections: Even in a hot market, due diligence is key. Protect your investment by thoroughly vetting any property.

Tips for Sellers

• Price Smartly: The days of automatic bidding wars may be behind us, so work with your agent to set a realistic price based on recent comps.
• Stage to Shine: First impressions matter. Clean, declutter, and consider minor upgrades to make your home stand out.
• Be Prepared to Negotiate: With more homes on the market, buyers may request concessions. Stay flexible and open to reasonable offers.

Looking Ahead

While the Phoenix metro market has cooled from its peak, it remains one of the most dynamic in the country. Both buyers and sellers have opportunities—if they approach the process with preparation and the right mindset. Whether you’re hoping to find your dream home or maximize your sale, today’s market rewards those who stay informed and act decisively.