Phoenix, AZ 85085 Real Estate Market Report

ZIP Code: 85085
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 Phoenix housing market, specifically in the 85085 area, is characterized by a median sold price of $670,950. This reflects a significant shift in market dynamics, as the area has experienced a down trend in prices. The market appears to be cooling, with elevated inventory levels contributing to a slower sales velocity. The median days on market stands at 180, indicating that properties are taking longer to sell, which may suggest a shift in buyer sentiment or increased competition among sellers.

The current median listing price is $745,000, illustrating a notable gap between asking and sold prices. This discrepancy may indicate seller expectations that are not aligning with current market realities. With median market rent at $3,170, rental prices are also experiencing a down trend, further emphasizing the cooling market conditions. Overall, the market temperature is classified as cold, reflecting the challenges faced by sellers in achieving favorable sales outcomes.

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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

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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 Phoenix AZ average around 5.875% to 6.65%, which is significantly lower than the typical 2026 origination rates estimated near 6.65% to 7.435%.

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 $670,950 indicates a significant price adjustment in the market, reflecting a down trend.

2. With a median days on market of 180, properties are experiencing slower sales velocity, suggesting potential buyer hesitance.

3. The median listing price of $745,000 shows a notable gap compared to sold prices, indicating possible pricing friction in the market.

4. The median market rent of $3,170 is also down, aligning with the overall cooling trend in the housing market.

5. The market temperature is classified as cold, indicating a challenging environment for sellers.

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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.