85138
Phoenix, Arizona
Phoenix 85138 needs watching.
The 85138 ZIP code in Phoenix, Arizona has a median sale price of $337K, down -7.0% year-over-year. Homes spend an average of 96 days on market, with 18% of homes selling above list price.
Folio's PropIQ™ score of 60 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 85138.
The 85138 ZIP code is experiencing a buyer-favorable correction, with the median sale price settling at $336,831 after a 7.0% year-over-year decline. Homes are averaging 96 days on market, significantly longer than the sub-30-day inventory turns seen during peak pandemic conditions. Only 18% of properties are commanding above-list offers, indicating sellers have lost pricing power and must align expectations with current demand levels rather than 2021-2022 valuations.
This environment favors cash-position buyers and patient investors seeking entry below previous peak pricing. The 96-day marketing period provides negotiation leverage that didn't exist when inventory cleared quickly. First-time buyers previously priced out during the appreciation cycle now face 7.0% lower entry costs and reduced competition, with fewer than one in five properties generating bidding wars. Sellers with immediate timelines face headwinds, while those who can wait should monitor absorption rates before listing.
The PropIQ score of 60 signals caution rather than opportunity or distress, suggesting stabilization hasn't materialized and further softening remains possible. The combination of declining prices, extended days on market, and weak above-list performance indicates demand hasn't absorbed current supply levels. Monitoring monthly sales velocity and new listing volume will clarify whether the 7.0% decline represents a bottom or midpoint in this correction cycle.
What is the median home price in 85138 Phoenix?
The median sale price in 85138 is $337K, down -7.0% year-over-year as of 2026-02-28.
How long do homes stay on the market in Phoenix 85138?
Homes in 85138 Phoenix spend an average of 96 days on market before going under contract.
Is Phoenix 85138 a good place to invest in real estate?
Folio's PropIQ™ score for 85138 is 60/100 — a Caution signal. 18% of homes sold above asking.
What does a PropIQ™ score of 60 mean for 85138?
PropIQ™ is Folio's proprietary market score combining price momentum, days-on-market velocity, inventory absorption, and investment signals into a 0–100 number. Score of 60 = Caution in 85138 Phoenix, Arizona.