Phoenix, AZ 85085 Real Estate Market Report

ZIP Code: 85085
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 median sold price in Phoenix, AZ (ZIP: 85085) stands at $662,000, reflecting a cooling trend in the market. This price indicates a shift away from previous highs, as the market has experienced a decline in pricing momentum. The neighborhood has decreased 8% since 2022, suggesting that buyers may have more negotiating power as the market adjusts to elevated inventory levels and softening demand.

Transaction activity appears moderate, with 173 days as the median days on market, indicating slower sales velocity. The current market temperature is classified as neutral, suggesting a balance between supply and demand. However, the elevated inventory relative to sales activity may contribute to pricing friction, as sellers adjust expectations in a changing landscape.

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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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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 Phoenix, AZ, around 5.625% are slightly lower than the 5.875% average seen for similar loans originated in early 2026.

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 $662,000 indicates a decrease of 8% since 2022, reflecting a cooling market.

2. With a median days on market of 173, the market is experiencing slower sales velocity, suggesting potential pricing adjustments.

3. The median listing price of $737,449.50 shows a significant gap from the sold price, indicating pricing friction as sellers may need to recalibrate expectations.

4. The median market rent is at $3,170, which may suggest stable rental demand despite overall market softness.

5. Current interest rate pressure is described as elevated, which may further impact buyer activity and market dynamics.

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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.