What Everyone Gets Wrong About the Phoenix Housing Market in 2025

The Phoenix real estate market is full of opportunities—but also plenty of misinformation. Buyers think homes are unaffordable, while sellers worry demand is disappearing. The truth? Phoenix remains one of the strongest housing markets in the country.

Not only that, but Phoenix has one of the lowest inflation rates in the U.S., ranking 5th best among major metro areas. This means the cost of living is stabilizing here faster than in other cities, creating a prime opportunity for homebuyers and sellers alike.

Let’s cut through the noise and bust the 7 biggest myths about buying and selling a home in Phoenix, Scottsdale, Chandler, and surrounding areas.

For Buyers: Why It’s Still a Great Time to Buy in Phoenix

🔹 Myth #1: There’s nothing affordable left in Phoenix

✅ Reality: More homes under $300K are available now than in the past few years.

In 2022, finding a single-family home under $300K was nearly impossible, with just 90 options in Maricopa and Pinal counties. Today, that number has jumped to over 500.

Looking for condos and townhomes? You now have over 1,200 options in Maricopa County alone, including affordable homes in Mesa, Gilbert, and Peoria.

👉 Pro Tip: Expanding your search beyond Phoenix to cities like Goodyear, Surprise, and Queen Creek can help you find more affordable homes with lower property taxes.

🔹 Myth #2: Mortgage rates are too high to buy right now

✅ Reality: There are plenty of ways to lower your rate and monthly payment.

Yes, mortgage rates are higher than they were a few years ago, but buyers today have more negotiation power.

💡 Ways to lower your mortgage rate in Phoenix:
✔️ Seller-paid incentives: 57% of home sales include seller contributions, which can be used to buy down your interest rate or cover closing costs.
✔️ Loan assumptions: Some sellers have FHA or VA loans under 5% that buyers can take over (a huge savings).
✔️ Rate buy-downs: Some lenders offer temporary or permanent rate reductions.

🔹 Myth #3: Homebuyer assistance is only for first-time buyers

✅ Reality: Many programs allow repeat buyers to qualify.

Many people assume they don’t qualify for assistance because they’ve owned a home before. Not true!

Did you know that under HUD’s definition, a first-time homebuyer includes:
✔️ Anyone who hasn’t owned a home in the last 3 years
✔️ Recent divorcees
✔️ People who have only owned a mobile home

Plus, many down payment assistance programs allow income levels up to $150K—and some have no income cap at all!

👉 Pro Tip: Check out programs available in Tempe, Chandler, and Glendale, where local assistance can make homeownership more affordable.

For Sellers: What You Need to Know About Today’s Market

🔹 Myth #4: Buyer demand is dropping

✅ Reality: Demand remains strong—buyers are just more selective, many want move in ready homes!

Phoenix is still one of the fastest-growing cities in the U.S., thanks to:
✔️ Strong job growth in tech, healthcare, and manufacturing
✔️ More affordable living compared to states like California and Washington
✔️ A steady influx of out-of-state buyers

Buyers today aren’t overpaying like they did in 2021, but they’re still actively purchasing. Well-priced, move-in-ready homes are selling fast.

🔹 Myth #5: Selling “as-is” is still a smart strategy

✅ Reality: Buyers today expect move-in-ready homes.

During the pandemic boom, sellers could list a home in any condition and get offers. Not anymore.

Today’s buyers expect modern, well-maintained homes. If your home needs updates, you have two options:
✔️ Make key upgrades (paint, flooring, kitchen/bathroom improvements)
✔️ Price aggressively to attract investors

Homes that are clean, staged, and well-marketed will sell faster in Scottsdale, Peoria, and Chandler.

🔹 Myth #6: Home prices in Phoenix are about to crash

✅ Reality: The big correction already happened—prices are now stabilizing.

If you’re waiting for a massive price drop, you might be waiting a long time.

Phoenix already saw a major market correction in 2022, and since then, prices have stabilized. While buyers have more negotiation power than before, homes aren’t selling at fire-sale prices.

🔹 Myth #7: Inflation is making Phoenix unaffordable

✅ Reality: Phoenix has one of the lowest inflation rates in the U.S.

Good news for homeowners and buyers: Phoenix ranks 5th best among major metros for inflation control.

📉 The year-over-year inflation rate is just 2.8% (compared to higher rates in California and New York).
📉 Lower inflation = better affordability for housing, groceries, and utilities compared to other major cities.

This makes Phoenix, Scottsdale, and Mesa even more attractive for homeownership.

🔍 Frequently Asked Questions (FAQs)

❓ Is now a good time to buy a home in Phoenix?
✔️ Yes! Home prices have stabilized, and buyers can negotiate seller-paid incentives to lower their costs.

❓ Are there still affordable homes in Phoenix?
✔️ Yes! There are over 500 single-family homes under $300K and 1,200 condos and townhomes available.

❓ Will Phoenix home prices drop in 2025?
✔️ No, the big correction already happened in 2022. Prices are expected to remain stable or rise slightly.

📌 Final Thoughts: What Should You Do Next?

Phoenix real estate isn’t as complicated as the headlines make it seem.

✅ If you’re a buyer: Now is the time to take advantage of seller incentives, lower inflation, and new inventory.
✅ If you’re a seller: Make sure your home is priced right and move-in ready to attract buyers.

Still have questions? I’m here to help! Whether you’re buying, selling, or investing, let’s create a plan that works for you.

📩 Message me today and let’s make your next move a smart one!