Phoenix, AZ 85003 Real Estate Market Report

ZIP Code: 85003
Report Date: February 2026
Market Temperature: N/A
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the Phoenix, AZ (ZIP: 85003) market showcases a median sold price of $668,500, reflecting the actual transaction activity and indicating a robust market despite broader price softening in the Phoenix area. The absence of historical sold price change data limits our ability to assess long-term trends, yet the current sold price remains a critical indicator of localized demand and market stability.

The market exhibits elevated inventory levels, suggesting a shift towards a more balanced environment. With a median days on market of 175, properties are experiencing slower sales velocity, which may indicate a need for sellers to adjust expectations in response to current market dynamics. Despite these challenges, the underlying support from strong local job growth continues to bolster housing demand in the area.

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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

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Phoenix AZ market average 6.6% as of February 2026, which is 0.8% higher than the 5.8% average seen earlier this month, indicating a slight rate increase for recent property owners.

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. $668,500 is the median sold price, indicating strong local demand amidst broader market softening.

2. The median days on market stands at 175, suggesting slower sales velocity and potential pricing friction for sellers.

3. Elevated inventory levels indicate excess supply relative to sales activity, which may require adjustments in pricing strategies.

4. The median market rent is $2,386, reflecting ongoing demand for rental properties in the area.

5. Current interest rate pressure is elevated, with mortgage rates averaging 6.6%, which could impact buyer affordability and market activity.

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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.