February Market Update
February 2025: What Buyers and Sellers Need to Know
The Phoenix housing market is sending mixed signals as we move into February. Active listings have surged by 44% compared to last year, reaching 22,432 homes. This increase gives buyers significantly more choices, but it also presents challenges for sellers competing for attention in a crowded market.
The luxury market is thriving, with homes over $3 million driving much of the price growth:
142 homes sold for over $3 million in the last two months, compared to 92 a year ago.
35 homes sold for over $6 million, nearly 4x last year’s volume.
This activity at the top end has pushed the average price per square foot up 8.8% year-over-year. However, the median price—a better measure for most buyers—has held steady at $450,000, reflecting stability in the broader market.
What This Means for Buyers
More inventory doesn't necessarily mean less competition—homes are still moving quickly, and some are even receiving multiple offers. While interest rates remain close to 7%, prices have stayed stable, and new listings give buyers more options to consider. It's a market where patience and strategy matter, but you still have to act decisively when the right opportunity arises.
What This Means for Sellers
Pricing strategically is critical. With more competition and a slower contract ratio (currently at 33, down from 47.7 last year), buyers have options. Well-prepared homes priced to match the market will still move. Pay attention to what’s under contract in your neighborhood—not just what’s active.
The high-end market remains a world of its own, driven by cash buyers and unaffected by mortgage rates. Sellers in this segment can expect strong demand to continue, as long as the stock market holds steady. As always, real estate is hyper-local. Whether you’re buying or selling, having the right strategy is key.
Why Updating Home Insurance is Critical—Especially if Your Home is in a Trust
Recent wildfires, such as the Palisades and Eaton fires in Los Angeles County, have been devastating—destroying thousands of homes and tragically taking lives. For those affected, the loss is not only emotional but often compounded by gaps in insurance coverage.
This hits close to home. I’ve had friends who’s family and friends have lost houses they lived in for decades. These experiences are a sobering reminder of how important it is to regularly review your homeowners insurance for accuracy, especially when your home is owned by a trust.
If your property is held in a trust, your insurance policy should reflect that ownership. Adding the trust as an "additional insured" ensures both you and the trust are protected from property damage and liability claims. Overlooking this simple update can leave significant gaps, putting your home and future at risk.
It’s never easy to think about worst-case scenarios, but a few proactive steps now can offer peace of mind later. If you’re unsure whether your policy is up to date, it’s worth checking with your insurance provider to make sure you’re fully protected.
If you are looking for ways to help, send us a message and we will connect you to personal sites of people we know who need help.
FOOD & FUN IN FEBRUARY
February in Phoenix offers a vibrant array of activities and new dining experiences to explore. Here are some highlights for the remainder of the month:
Upcoming Events:
WM Phoenix Open (February 6-9): Experience the excitement at TPC Scottsdale, where top golfers, and celebreties compete in this lively tournament.
Arizona Renaissance Festival (Weekends through March 29): Step back in time with medieval entertainment, artisan crafts, and hearty fare in Gold Canyon.
Arizona Strong Beer Festival (February 17): Savor a diverse selection of craft brews at the annual event, a favorite among beer enthusiasts. (phoenixmag.com)
New Restaurant Openings:
Best New Restaurants: Explore a curated list of the hottest new dining spots in Phoenix, offering a range of cuisines and atmospheres. (phoenix.eater.com)
Beginner's Luck
All-day restaurant offers straightforward, affordable food with a touch of sophistication, including sweet versions of focaccia made daily in a variety of flavors.Tesota
Tesota is a standout restaurant in Phoenix's culinary scene, offering exceptional dishes that have garnered significant attention.Uchi Scottsdale
Uchi brings a unique dining experience to Scottsdale, featuring innovative Japanese cuisine that has quickly become a favorite among locals.Huarachis
Huarachis offers authentic Mexican flavors with a modern twist, making it a must-visit spot for food enthusiasts in Phoenix.Élephante
Opened in late 2024 at Scottsdale Fashion Square, this coastal Italian restaurant features wood-fired pizzas and fresh pastas in a stylish setting.
Take advantage of the amazing weather and treat yourself to something new—whether it’s a festival, a fun event, or a fresh dining experience!
