Spring 2025 Housing Market Update: What Buyers and Sellers Need to Know in Sun City West, AZ
The spring 2025 housing season is here, and national and local markets are facing major changes. Tariffs, high mortgage rates, and stock market uncertainty are all playing a role, and in Sun City West (SCW), we’re seeing signs of a shift from a seller’s market to one that favors buyers.
National Trends Impacting Real Estate
Tariffs = Higher Construction Costs: New tariffs on Canadian lumber and Chinese steel have raised homebuilding costs. That’s making new builds more expensive and could slow down future inventory.
Mortgage Rates Stay High: Average 30-year fixed rates are holding steady around 6.81%, limiting affordability, especially for buyers relying on financing.
Stock Market Wobbles: Volatile markets are shaking consumer confidence, which often leads to hesitation on big purchases like real estate.
Sun City West: Market Snapshot
More Homes Hitting the Market: SCW saw an increase in active listings in March, reaching 374 homes. While sales also rose, they’re not keeping pace with new listings.
Homes Taking Longer to Sell: Average days on market climbed to 77 days, up almost 15% from last year — a sign buyers are taking their time and weighing more options.
More Homes Selling Below Asking: About 68% of sales are closing below list price. This is a clear signal that sellers are having to adjust expectations.
What This Means: A Shift Toward a Buyer's Market
Sun City West hasn’t fully flipped yet, but we’re moving toward a buyer-friendly market. Here’s why:
- Inventory is growing faster than demand.
- Homes are staying on the market longer.
- More price cuts and buyer negotiations are happening.
- Buyers have more choices and bargaining power. Sellers need to adapt.
Tips for Buyers and Sellers
Buyers:
- Look for price reductions — motivated sellers are out there
- Don’t rush — more options mean better decisions
- Cash buyers have an edge in this rate environment
Sellers:
- Price your home competitively from the start
- Make your home stand out with good staging and marketing
- Be open to negotiations, incentives, or rate buy-downs
Final Thoughts
National economic pressures are making waves, and SCW is feeling the effects. With supply rising and buyer caution increasing, the market is rebalancing. Whether you’re buying or selling, smart strategy and local expertise are key to navigating this evolving landscape.
Thinking about making a move this spring? Let’s talk about your goals and how to make the most of this shifting market.
