85261
Phoenix, Arizona
Phoenix 85261 needs watching.
The 85261 ZIP code in Phoenix, Arizona has a median sale price of $497K, down -43.6% year-over-year. Homes spend an average of 52 days on market, with 25% of homes selling above list price.
Folio's PropIQ™ score of 56 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 85261.
The 85261 market is experiencing severe price contraction, with the median sale price settling at $496,750 after a 43.6% year-over-year decline. Homes are moving at a moderate pace with 51.5 days on market, while only 25% of properties sell above list price, indicating weak buyer competition. This correction represents one of the sharper residential contractions in the Phoenix metro area, signaling a fundamental repricing from previous peak valuations.
Price-sensitive buyers gain significant leverage in this environment, with 75% of sales closing at or below asking price and negotiation windows exceeding seven weeks on average. Cash investors targeting distressed inventory or value plays should find motivated sellers, particularly those who purchased near the 2024-2025 peak. Existing homeowners considering sales face challenging conditions, as the median price of $496,750 may sit well below recent purchase prices for anyone who bought within the last eighteen months.
The PropIQ score of 56 signals elevated caution, suggesting continued volatility rather than immediate stabilization. Markets recovering from 43.6% annual declines typically require multiple quarters to establish price floors, meaning further softness remains possible through mid-2026. Buyers should monitor absorption rates and the percentage of above-list sales; any movement above 35% would indicate demand recovery, while further decline below 20% would confirm additional downward pressure.
What is the median home price in 85261 Phoenix?
The median sale price in 85261 is $497K, down -43.6% year-over-year as of 2026-02-28.
How long do homes stay on the market in Phoenix 85261?
Homes in 85261 Phoenix spend an average of 52 days on market before going under contract.
Is Phoenix 85261 a good place to invest in real estate?
Folio's PropIQ™ score for 85261 is 56/100 — a Caution signal. 25% of homes sold above asking.
What does a PropIQ™ score of 56 mean for 85261?
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 56 = Caution in 85261 Phoenix, Arizona.