Phoenix, AZ 85035 Real Estate Market Report

ZIP Code: 85035
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the housing market in Phoenix, AZ (ZIP: 85035) is characterized by a median sold price of $329,000, reflecting a downward trend in pricing. The neighborhood has decreased 8% since 2022, indicating a shift in market dynamics that may favor buyers. This decline in sold prices, coupled with a median listing price of $332,450, suggests a notable gap between seller expectations and actual market performance, which could lead to pricing adjustments in the near future.

Market activity is currently marked by 228 days on market, indicating slower sales velocity and potentially elevated inventory levels. The market temperature remains neutral, suggesting a balanced state where neither buyers nor sellers hold a distinct advantage. Despite positive local job growth, elevated mortgage rates are contributing to buyer caution, further influencing the current market conditions.

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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

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates near 5.875% in the Phoenix market are lower than the average 6.69% seen earlier in 2026, indicating a potential cost advantage for recent refinancers.

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 $329,000 indicates a significant pricing adjustment, reflecting a market that has decreased 8% since 2022.

2. With a median days on market of 228, the market is experiencing slower sales velocity, which may indicate buyer hesitance.

3. The median listing price stands at $332,450, suggesting a potential pricing gap that could lead to further adjustments as sellers respond to market realities.

4. The market temperature is currently neutral, indicating a balanced environment where both buyers and sellers are adjusting to current conditions.

5. Elevated mortgage rates are exerting moderate pressure on buyer activity, contributing to a cautious approach in the market.

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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.