5 Biggest Myths of Buying a Home in Arizona in 2025 Dispelled by Experts
Written by
Martin Dasko
Edited by
Rebekah Evans
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According to Redfin data from November 2024, the housing prices in Arizona went up 2.7% on an annual basis, reaching the median price of $448,900. The Arizona real estate market had 6,834 homes sold in the month, with a median figure of 56 days on the market. Certain misconceptions need to be addressed if you’re considering buying a home in Arizona in 2025.
These are the biggest myths about buying a home in Arizona in 2025, debunked by the experts.
Myth: The Arizona Housing Marketing Is Headed For a Correction
Curt Stinson, licensed partner of Engel & Völkers Tucson, said a common misconception about buying a home in Arizona is that the housing market is headed for a correction and home prices will fall.
What’s the reality?
“The influx of individuals moving from California has only been growing. We expect that trend to accelerate in 2025 as more corporations are choosing to move their headquarters to Arizona,” Stinson said.
“With companies relocating employees and creating jobs locally, this attracts more homebuyers from around the country,” he added. “The increased demand will only make the current housing shortage worse. This means home prices are more likely to rise than drop in 2025.”
Myth: Current Aggressive Homebuilding Will Significantly Increase Homeownership in Arizona
Stinson brought up how there’s been a narrative about the new construction in Arizona to address the challenges of home ownership in the state. There’s a misconception that homebuilding will increase the amount of homeowners across the state in 2025.
What’s the reality?
“The reality is that despite aggressive homebuilding, they can’t keep up with the growing demand,” Stinson explained. “Large investment firms are now funding new developments to build many homes to rent, not sell.”
Stinson pointed out how smaller conduction companies looking to build new homes are struggling to purchase parts and materials, with larger builders buying in bulk at price points that smaller firms can’t afford. The result is that the time it takes for a smaller company to build a home has slowed down, which means that even though more houses are added to the market, they’re not increasing homeownership as expected.
Myth: You Can Save Money By Waiting For Mortgage Rates To Drop
Another common misconception is that waiting for mortgage rates to come down will save you money on a home in Arizona in 2025.
What’s the reality?
“Mortgage rates will likely be lower in 2025, but the housing market in Arizona will stay tight due to the significant housing shortage,” Stinson said. “Those who have been waiting on the sidelines for mortgage rates to decrease will become more active.” As competition for homes increases, the prices will likely shoot up. While a homebuyer is stuck with the price they paid for the home, mortgage rates can always be refinanced, which means that you may not want to wait for rates to drop before entering the market.
“In 2024, many buyers were deterred by high interest rates, but sellers often provided rate buydowns to offset costs,” said Melissa Bailey, real estate agent in Arizona with the Jason Mitchell Group. “As rates are expected to decline in 2025, pent-up demand from sidelined buyers will likely flood the market.”
The general consensus from the experts is that if you wait too long to buy a home in Arizona, you may spend more on it.
Myth: Snowbirds Drive the Arizona Housing Market
Another misconception about buying a home in Arizona is that snowbirds are a key driver of the Arizona housing market, which makes summer the worst time to sell a home.
What’s the reality?
“While it might have been true historically, snowbirds no longer drive the Arizona housing market,” Stinson explained. “The largest segment of homebuyers are families, many of whom are moving from out of state.”
This means that you can find homes for sale on the market in the spring as families look to move over the summer to ensure that their kids are situated before the start of the school year.
Myth: Buying a Home in Arizona is Always a Good Idea
Bailey pointed out that a common misconception in the Arizona housing market heading into 2025 is that buying a home is always a good idea.
What’s the reality?
While buying a home can be an excellent investment over the long term, it’s not automatically the right choice for everyone in every market. “In Arizona, for example, 2025 is predicted to be one of the busiest years in real estate following a historically slow 2024,” Bailey said.
When debating about buying a property, potential homebuyers should consider personal factors like job stability, savings, and long-term plans. If you can’t afford the monthly payments or haven’t saved enough yet, you’ll want to wait to enter the real estate market in Arizona.
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