A closer look at the real data behind Scottsdale’s shifting housing market in 2025 tells us if Scottsdale home prices are dropping.
As of May 2025, the Scottsdale housing market presents a bit of a mixed picture, with some data indicating price declines while others suggest stabilization or subtle growth. According to Zillow, the typical home value in Scottsdale is approximately $782,937, reflecting a 5.8% decrease over the past year. This decline aligns with a 2023 Yahoo Finance report noting a 4.78% drop in Phoenix-area home prices, including Scottsdale, driven by rising interest rates and softening demand. Additionally, a 2025 Doorloop report highlighted a 7.7% drop in median sold prices in April 2023 compared to the previous year, with homes selling for around $780,000, suggesting a cooling trend in certain segments.
However, other sources indicate that home prices are either stabilizing or rising. Redfin reports a median sale price of $865,000 in February 2025, up 4.7% year-over-year, while Rocket Homes notes a median sold price of $875,595 in April 2025, a 6.2% increase from the previous year. Norada Real Estate cites an average home value of $824,119 in 2024, with steady but slower growth, and Scottsdale.org reported a 22.2% jump in median sales prices to $1.2 million in July 2024. These figures suggest that while certain price points or neighborhoods may be experiencing declines, the overall market remains robust, particularly for luxury properties.
Market dynamics also play a role. Inventory has increased, with 2,652 homes for sale in April 2025 (Rocket Homes) and a 26% rise in available homes statewide (Norada). Homes are taking longer to sell, with median days on market ranging from 50 to 71 days, indicating a shift toward a more balanced market. This increased supply gives buyers more negotiating power, with 72.5% of homes selling below asking price in April 2025.
High mortgage rates, averaging 6.44% in October 2024, continue to impact affordability, potentially contributing to price adjustments in some areas. However, Scottsdale’s desirability, driven by its lifestyle and limited land for new construction, supports stable or rising prices in high-demand neighborhoods. While some data points to declining prices, particularly in mid-range segments, the broader market shows resilience, with forecasts suggesting gradual growth into 2026 absent significant economic shifts.
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