A new report from Zillow has cast a shadow over the once-booming Phoenix housing market, revealing that nearly all homes in the area have diminished in value over the past year. Specifically, 86.9% of homes in the Phoenix metropolitan area have seen a drop from November 2024 to October 2025, positioning it fourth among major metro areas in the U.S. for diminished property values. This significant downturn has been noted just ahead of Dallas at 86.7% and trailing behind Denver at 91%, with Austin at 89% and Sacramento at 88%, as stated in an article by Phoenix New Times.
Despite these numbers, it's not all doom and gloom. Nationally, 53% of homes have lost value in the past year, and this retreat from peak prices doesn't necessarily spell out financial ruin for homeowners. "It’s important to consider that the peak for most homes was fairly recent," reads the Zillow report, indicating that many homeowners are still in possession of substantial equity, particularly those who made their purchases well before the recent peak in home prices. Only a minority, 5.9% to be exact, are faced with values lower than their last sale, an uptick from 2.8% last year but still below pre-pandemic figures, according to Phoenix New Times.
In contrast to the Zillow report, Phoenix REALTORS® has shared a brighter picture, with the latest year-to-date data showing the resilience of the Phoenix market in various segments. "[...] Year-to-date closed sales, pending sales, new listings, and median sales price all increased," Phoenix REALTORS® board president Christy Walker revealed. Local figures for closed sales rose by 3.8% and new listings by 8% over the first 10 months of 2025 compared to 2024. The numbers certainly paint a different picture than the Zillow report, highlighting the varying dynamics within the Phoenix housing landscape, as reported by AZ Big Media.
Adding to the sense of disparity between these reports, it's noted that while median prices remain stable or increased slightly in Phoenix, certain areas like Scottsdale enjoyed a median price rise of 3.5% to $1.18 million. In terms of sales, Phoenix experienced a modest 1.8% uptick in closed sales and a 5.4% increase in new listings. These figures are tucked within the robust performance of Gilbert where, new listings experienced an 11.4% surge, and closed sales were up 8.2%, painting a dynamic if not uniformly positive picture of the market, as detailed by AZ Big Media.
One of the takeaways from the aggregated data is the impact of various economic factors on home values. While Zillow's findings suggest homeowners, especially those who purchased before 2020, are not facing crisis levels of devaluation, Phoenix REALTORS®'s insight shows an active market with closed sales and listings still on the rise in certain areas. For those tracking the Phoenix housing market, the contrasting reports from Phoenix New Times and AZ Big Media offer a holistic view that continues to evolve.
