Phoenix, AZ 85035 Real Estate Market Report

ZIP Code: 85035
Report Date: February 2026
Market Temperature: COLD
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 (85035) is characterized by a median sold price of $325,000, reflecting a cooling trend in home values. The market has decreased 8% since 2022, indicating a notable decline in prices over the past few years. This downward trend, coupled with a median days on market of 245, suggests a slower sales velocity, which may indicate a shift in buyer sentiment and market dynamics.

Inventory conditions reveal elevated levels of supply relative to sales activity. While the median listing price stands at $337,000, the significant gap between listing and sold prices points to potential pricing friction, where sellers may need to adjust expectations to align with current market realities. The overall market temperature is classified as cold, reflecting the ongoing challenges in achieving quicker transactions and the overall decline in home values.

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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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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Cold market indicates weak buyer demand relative to available inventory, typically characterized by declining or flat prices, extended days on market, and elevated inventory levels relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Phoenix AZ 85035 area around 5.88% are notably lower than the recent average of 6.6% seen in February 2026, presenting a cost opportunity for refinancing.

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 $325,000 indicates a significant pricing adjustment in the market, down 8% since 2022.

2. With a median days on market of 245, the market is experiencing slower sales velocity, suggesting potential buyer hesitation.

3. The median listing price of $337,000 compared to the sold price indicates pricing friction that sellers may need to address.

4. Current market conditions are classified as cold, highlighting a challenging environment for sellers and a potential opportunity for buyers.

5. Rental rates are also on a downward trend, with a median market rent of $2,716, reflecting an oversupply of new construction in the area.

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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.