Phoenix, AZ 85042 Real Estate Market Report

ZIP Code: 85042
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 real estate market in Phoenix, AZ (ZIP: 85042) reflects a median sold price of $429,500, indicating a stable yet cautious environment for buyers and sellers alike. The neighborhood has decreased 8% since 2022, highlighting a trend of declining values that may influence buyer sentiment and seller expectations. The current market conditions suggest a gradual stabilization, with elevated inventory levels contributing to a slightly cooler atmosphere compared to previous years.

Transaction activity appears moderate, with a median days on market of 172 days, suggesting slower sales velocity. The relationship between the median listing price of $529,500 and the median sold price indicates potential pricing friction, as sellers may be adjusting expectations in response to market realities. Overall, the market temperature remains neutral, reflecting a balance between supply and demand, albeit with caution from buyers due to elevated interest rate pressure.

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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

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 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 in the Phoenix AZ 85042 market are around 5.875% to 6.375%, which is slightly higher than some 2026 historical lows reported near 5.625% to 5.875% for property owners in this area.

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 $429,500 indicates a significant 8% decrease since 2022, suggesting potential pricing adjustments in the market.

2. With a median days on market of 172, the market is experiencing slower sales velocity, which may indicate buyer caution and a need for sellers to adjust pricing strategies.

3. The median listing price of $529,500 compared to the sold price suggests pricing friction, as sellers may need to align expectations with current market conditions.

4. The rental market is facing challenges, with a median market rent of $2,716 showing signs of decline due to oversupply, despite solid underlying demand.

5. Current interest rates are exerting moderate pressure, with 30-year fixed mortgage rates ranging from 5.875% to 6.375%, impacting buyer affordability and overall 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.