85385
Phoenix, Arizona

ZIP code 85385 in Phoenix shows cooling momentum with a median sale price of $310,000, down 1.6% year-over-year as of February 2026. Homes are sitting considerably longer than peak market periods, averaging 111 days on market before transactions close. Despite the slowdown, 40% of sales still close above list price, indicating selective competition for well-positioned properties while the broader market recalibrates from previous highs.

The current conditions favor patient buyers with financing secured and flexibility on timing, as the 111-day absorption rate provides negotiating leverage absent during tighter inventory periods. The 40% above-ask close rate means buyers still face competition on premium listings but have substantially better odds than when that figure exceeded 60-70% market-wide. Sellers with equity built before 2024 can still exit profitably, though the negative 1.6% annual trajectory requires realistic pricing from the start to avoid extended market time.

The PropIQ score of 65 signals caution rather than distress, suggesting this market requires active monitoring rather than immediate action or avoidance. Key indicators to track include whether days-on-market extends beyond 120 days and if the above-ask percentage drops below 35%, both of which would indicate accelerating buyer advantage. The slight price decline without inventory flooding suggests demand softness rather than forced selling, meaning stabilization is more likely than sharp further corrections if mortgage rates hold steady.