Is Now a Good Time to Buy a Home in Arizona?

If you’re asking “Should I buy a house in Arizona right now?”, the short answer is: maybe—but it depends on your situation. The market is shifting, so it’s a good moment for many buyers, but not necessarily an ideal time for everyone. Below I break down what the data say, what buyers should weigh, and some practical next steps.

What Looks Favorable for Buyers Right Now

1. More Inventory = More choice & negotiating power

   In the Phoenix metropolitan area market, inventory has risen significantly. For example: active listings jumped ~39 % year‐over‐year in early 2025.  That means you’re less likely to be in a frenzied bidding war (though some segments are still competitive).

   Moreover:

    

   • Homes are taking more days on market; in June 2025 the average was ~67 days in Maricopa County. 

   • A growing share of homes sold below asking price: ~60% in one report. 

     This gives buyers the chance to negotiate more than they would have during the peak seller’s-market era.

    

2. Price growth is moderating—less risk of extreme over-heating

   While prices are still elevated, growth has slowed. Statewide in Arizona: median home price hovers ~$420k-$460k (varies by metro). 

   One forecast projects statewide home price appreciation of 3-5 % in 2025, a far cry from the double-digit annual gains of recent years. 

   A slower growth rate means less risk of getting into an overly inflated market and more stability.

3. Strong underlying demand fundamentals

   Arizona continues to see population growth, in-migration, and job growth—especially in metro areas. For example, reports show that the housing shortage remains substantial: the state faces a deficit of ~52,800 units in Q2 2025. 

   This suggests underlying demand is still there, which supports home values over the medium/long term.

What’s Making It Trickier for Buyers

1. Affordability is still a challenge

   Even with better choice and slower price growth, affordability remains tight. One report notes that in Q2 2025 you’d need a household income of $95,800 to meet conventional mortgage criteria in Arizona. 

   Also, average house prices ($426k statewide in Q2) are still meaningfully above historic “trend” for the region. 

   What that means: while the market is more friendly to buyers than during 2021-22, many buyers—especially first-time buyers—still face a financial squeeze.

2. Mortgage rates remain elevated

   Low rates helped fuel past booms. Now, 30-year fixed rates in Arizona are hovering ~6.7 % (or higher depending on profile). 

   Higher rates reduce buying power (you can afford less home for the same payment) and increase monthly costs.

3. Supply issues are still present

   Although inventory is rising, new construction is lagging. The rate of home‐building permits in Arizona is down compared to previous years (so supply is not swiftly catching up). 

   That means while you may have more options now, future supply constraints could limit bargains or lead to price stabilization rather than steep drops.

So… Should You Buy Now?

 Final Take

In summary: Yes, it’s a good time to buy a home in Arizona—provided your personal financial and life situation align.

You’ll find more options, more negotiating room than in the frantic seller’s-market era, and underlying demand to support long-term value. But you’ll also face higher interest rates and still-tight affordability, so you’ll want to buy smart: realistic about cost, intentional about choice of neighborhood, and prepared to hold for the long run.