Paradise Valley, AZ 85253 Real Estate Market Report

ZIP Code: 85253
Report Date: February 2026
Market Temperature: HOT
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the real estate market in Paradise Valley, AZ shows a median sold price of $3,700,000, reflecting strong buyer interest and sustained market activity. The neighborhood has increased in value, indicating a robust appreciation trend. The median listing price stands at $5,495,000, suggesting a significant gap between seller expectations and actual transaction values, which may indicate pricing friction in the market.

Transaction activity appears moderate, with 171 days on market indicating a slower sales velocity. Despite elevated inventory levels, the market remains in a favorable position for sellers, supported by positive local economic indicators and a low interest rate pressure environment. The median market rent of $3,930 also highlights strong rental demand, further underpinning the market's resilience and attractiveness to buyers and investors alike.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Paradise Valley AZ average around 6.01% to 6.18% compared to recent lows near 5.42% seen in late 2025, meaning property owners missed a more favorable borrowing window.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $3,700,000 reflects strong buyer interest in luxury properties within the area.

2. With a median listing price of $5,495,000, there is notable pricing friction between seller expectations and actual sales.

3. Properties are spending a median of 171 days on market, indicating a slower sales velocity and potential buyer hesitance.

4. The market temperature is classified as hot, suggesting continued strength in buyer demand despite elevated inventory levels.

5. A median market rent of $3,930 indicates robust rental demand, supporting the overall market stability.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.