Map: The neighborhoods where Valley Housing Costs have Jumped Most

After years of soaring home prices, Phoenix’s housing market is beginning to show signs of change. According to a Washington Post analysis of home value data from Intercontinental Exchange’s mortgage technology division, while national home prices rose 2.7% from February 2024 to February 2025, parts of Phoenix are experiencing modest price declines, offering potential relief for buyers and renters alike. However, the shift is uneven across the region. Affluent areas such as Scottsdale and Paradise Valley continue to see home values surge, while many working- and middle-class neighborhoods are seeing prices fall.

Where Prices Are Falling the Most

Several ZIP codes in and around Phoenix have seen noticeable home price declines over the past year:

• 85031 (West Phoenix): Average home value dropped 4.1% to $302,000. This area has over 70 homes for sale, many with price reductions.
• 85351 (Sun City): Down 3.9% to $275,000. With nearly 500 homes for sale, Sun City remains a key area for retirees. Some listings have seen price cuts as high as $18,000.
• 85006 (Central Phoenix): Prices fell 2.0% to $462,000. This ZIP code includes the historic Garfield and Coronado neighborhoods. Over 90 homes are listed for sale, many with reduced prices.
• Several other ZIP codes also saw 1.5% declines:
• 85022 and 85029 (North Phoenix), 85382 (Peoria), 85323 (Avondale), and 85017 (Maryvale) all saw modest price drops. Maryvale, which includes Grand Canyon University, has listings with cuts up to $30,000.

These areas may offer opportunities for buyers, particularly those looking for homes in established residential neighborhoods or near city amenities.

Where Prices Are Still Climbing

On the flip side, Scottsdale and surrounding upscale areas continue to see home values soar:

• 85253 (Central Scottsdale): Home prices jumped 7.6%, now averaging $2.2 million. This ZIP includes parts of Paradise Valley and features luxury estates with high-end amenities. Nearly 300 homes are listed for sale.
• 85262 (North Scottsdale): Up 5.1% to $1.4 million, this ZIP stretches from McDowell Mountain Park into remote desert areas. Around 500 homes are on the market.
• 85254 (North Scottsdale): Prices rose 4.5% to $847,000. Known for golf courses and family homes, this ZIP has roughly 260 listings.
• 85266 (North Scottsdale): Up 4.3% to $1.2 million. This area, near the town of Carefree, has homes between 2,500 to 4,500 square feet.
• 85213 (Central Mesa): Home values increased 4% to $1.1 million. This ZIP includes many large, upscale properties.
• A Divided Market with Opportunities

Phoenix’s real estate landscape is becoming more segmented. Buyers looking for affordability may find options in areas like Sun City, Maryvale, and Central Phoenix. Meanwhile, demand remains high in luxury areas, where prices continue to climb. The current trends suggest a softening in parts of the market, potentially easing pressure on first-time buyers and renters. However, with demand still strong in premium ZIP codes, the market remains competitive for high-end properties.