Phoenix, AZ 85042 Real Estate Market Report

ZIP Code: 85042
Report Date: March 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of March 2026, the median sold price in Phoenix, AZ (ZIP: 85042) stands at $425,000, reflecting a market that has seen a transition toward balance. The neighborhood has decreased 8% since 2022, indicating a softening trend in home values. This decline in sold prices, coupled with a median listing price of $514,500, suggests a notable pricing gap that may create friction for sellers as they adjust expectations to align with buyer sentiment.

Market activity is characterized by elevated inventory levels, with a median days on market of 210, indicating a slower sales velocity. The current market temperature is described as neutral, suggesting a balanced environment where neither buyers nor sellers hold a distinct advantage. Elevated interest rate pressure, currently around 6.375%, may further temper buyer activity, influencing overall liquidity in the market.

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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 area around 6.375% are lower than some 2026 origination rates reported near 6.73%, suggesting a potential cost advantage for recent borrowers.

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 $425,000 indicates a decrease in home values, down 8% since 2022.

2. With a median listing price of $514,500, there is a significant pricing gap that may create friction for sellers.

3. A median days on market of 210 reflects slower sales velocity, suggesting that properties are taking longer to sell.

4. The market temperature is currently neutral, indicating a balanced environment for buyers and sellers.

5. Elevated interest rate pressure may continue to temper buyer activity, impacting overall market liquidity.

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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.