Tempe, AZ Real Estate Market Report for December 2025: Key Metrics, Trends, and Opportunities

The pulse of Tempe, AZ beats strongest when data supports your next move. December 2025 brings a dynamic set of numbers: the median sale price stands at $472,500, with 128 closed sales and 147 new listings contributing to a nuanced market atmosphere for buyers and sellers. What does this mean for your clients?

This month, the market shows a months of inventory figure at 2.1 and properties moving in an average of 36 days. These indicators point to conditions where negotiation leverage is shifting. Is it a good time to buy in Tempe, AZ? Experts say opportunities exist, but strategy is key. Agents and clients alike should pay close attention to these current trends in Tempe, AZ homes before acting.

Understanding December 2025 Metrics in Tempe, AZ

For buyers, the broad inventory under $500,000—representing 39 percent of active homes—suggests choices remain, especially for first timers and move up shoppers. The list-to-sale ratio of 97.4 percent means discounts are real, but not deep, compared to previous cycles.

Recent sellers navigated a market where 18 percent of active listings saw a price reduction before closing. Why does this matter? Timely price adjustments directly affect time on market and eventual sale price for those wondering how to sell your house fast in Tempe, AZ. The median single family sale price reached $508,000, while condos averaged $325,000.

Closed Sales, Inventory, and What Drives Tempe, AZ This Month

December 2025's 128 closed sales hold special weight with average mortgage rates holding steady at 6.4 percent. This rate, alongside 23 percent of deals involving seller concessions, gives buyers more room to negotiate and underscores the critical importance of creative financing and skilled agent guidance this month.

• Median sale price: $472,500
• Active listings: 147 new this month
• Months of Inventory: 2.1
• Average Days on Market: 36
• Seller concessions: 23 percent of deals

Actionable Insights for Buyers and Sellers in Tempe, AZ

Multiple offer scenarios still pop up in 22 percent of sales, yet the balance is shifting. For single family homes at $508,000, and attached homes and condos at $480,000 and $325,000 respectively, having up-to-date numbers helps buyers act decisively and sellers price with confidence. Anchored strategies are vital when assessing affordable homes in Tempe, AZ this December 2025 or timing a listing for strongest impact. Exploring market changes in Tempe, AZ for buyers and sellers can sharpen these decisions.

Segment Breakdown and Why These Trends Matter

Financing types are split: 54 percent conventional and 28 percent FHA or VA. Choice of loan influences competition levels, seller flexibility, and closing timelines. Knowing these splits supports sharper negotiations for all parties.

Luxury property activity—homes closing above $800,000—shows just 7 transactions, with a longer average market time of 51 days. Understanding why this market segment moves slower guides agents in crafting specialized marketing plans and setting expectations for high end sellers.

Positioning for Success in December 2025

For those contemplating whether it is a good time to buy in Tempe, AZ, timing and preparedness are crucial. The slight dip of 1.3 percent month over month in median sale price could indicate the start of more favorable terms for buyers if inventory builds further. Sellers, meanwhile, will need to pay special attention to comparable home pricing, market absorption, and the effect of timely price reductions to minimize days on market.

Looking Ahead in Tempe, AZ Real Estate

Tempe, AZ remains a diversified market, with inventory spanning condos, townhomes, and classic single family homes. The diversity of housing options supports a range of buyer and seller priorities throughout December 2025. Jeff Setlow stands by to discuss the numbers or to answer any questions about next steps in this active real estate scene. For deeper perspective, dive into local real estate insights in Tempe, AZ and optimize your plan before the year concludes. Whether you are strategizing a sale or searching for value, Tempe, AZ offers evolving opportunities with every closing and new listing.