85240
Phoenix, Arizona

# Phoenix, AZ 85240 - Market Report

The 85240 ZIP code shows moderate appreciation with median sale prices reaching $474,500, marking a 6.4% year-over-year increase that outpaces national inflation but signals measured growth rather than speculation. Properties are averaging 76 days on market, indicating a balanced environment where neither buyers nor sellers hold decisive leverage. With only 18% of homes selling above list price, the bidding war dynamics that characterized 2021-2022 have clearly dissipated, replaced by more traditional negotiation patterns.

This market configuration favors deliberate buyers with financing secured and flexible closing timelines who can capitalize on the 76-day average DOM to conduct thorough due diligence without pressure. The 82% of homes selling at or below list price creates room for offer negotiations that were impossible during peak frenzy periods. Sellers with well-priced, move-in ready properties still capture premium positioning, but those requiring significant repairs face extended marketing periods given buyers' restored selectivity in this normalized environment.

The PropIQ score of 70 signals neutral conditions that could pivot either direction depending on employment data and mortgage rate movements through Q2 2026. The 6.4% appreciation rate remains positive but watch for any deceleration below 5% annually, which would indicate softening demand absorption. Inventory levels and days-on-market trends warrant monthly monitoring, as any sustained increase beyond 90 days would shift negotiating power definitively toward buyers and potentially compress the current price trajectory.