Tempe, AZ 85281 Real Estate Market Report

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.

Market Metrics

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.

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.

Property Taxes

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.

Market Trends & Context

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

Key Findings

1. The primary market-value signal is the median sold price $453,000, which represents the most recent transaction-level benchmark for valuation in 85281 and suggests moderated pricing relative to seller expectations.
2. There is a visible pricing gap between the median listing price $505,000 and the median sold price; this gap, together with down price year-over-year trend, suggests seller expectations exceed realized sale levels and may be driving longer negotiations or pricing concessions.
3. Market liquidity is slowing: the median days on market 267 indicates notably slower sales velocity and, combined with elevated inventory relative to sales activity, appears to be creating pricing friction rather than rapid turnover.
4. Financing and rental conditions are headwinds: interest rate pressure is described as elevated, rents are trending down, and property rate comparison notes: Current 30-year fixed mortgage rates in Tempe, AZ are approximately 6.6%, which is 0.6% higher than the 6.0% average observed earlier in 2026; these factors collectively may further temper buyer affordability and transaction pace.

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.