How Rising Home Inventory in 2025 Will Impact Scottsdale Buyers and Sellers

The Scottsdale housing market is shifting. Over the past few years, home inventory has been at record lows, making it a challenge for buyers to find the right home. However, according to recent forecasts, the number of existing homes for sale is expected to increase by 11-15% in 2025.

This shift presents opportunities and challenges for both buyers and sellers. If you're considering buying or selling a home in Scottsdale, it's important to understand what these changes mean for you and how to navigate the market effectively.

Understanding the Increase in Housing Inventory

In 2024, the number of existing homes for sale grew by 22%, helping to ease some of the pressure in the housing market. Now, as we enter 2025, experts predict another significant increase in inventory. Realtor.com estimates an 11.7% rise in for-sale homes, while Altos Research projects a 15% increase.

For years, low housing inventory contributed to bidding wars and rising home prices. With more homes available, we may see a more balanced market, which can have several effects on home prices, competition, and overall market conditions in Scottsdale.

Why Is Inventory Increasing?

Several factors are contributing to the rise in available homes:

• Higher Mortgage Rates: Many potential sellers held off listing their homes when mortgage rates spiked. Now, as rates stabilize, more homeowners are deciding to sell.

• New Construction Growth: Builders have been ramping up production, increasing the supply of new homes, which leads to more existing homes entering the market.

• Shifting Market Conditions: Some homeowners who were waiting for peak prices to sell are now listing their properties before prices level out.

Now, let’s take a closer look at how this shift affects buyers and sellers in Scottsdale.

How More Homes for Sale Benefit Scottsdale Homebuyers

1. More Choices, Less Competition

For buyers, an increase in inventory is great news. One of the biggest challenges in recent years has been the lack of available homes, forcing buyers into bidding wars and paying over asking price. With more listings on the market, buyers will have more options and face less competition.

2. Better Negotiating Power

In a seller’s market, buyers often had to make aggressive offers, waive contingencies, and bid significantly over asking price to win a home. With more homes available, buyers will have greater negotiating power, meaning they can:

• Ask for seller concessions (such as covering closing costs)

• Negotiate repairs instead of accepting homes as-is

• Have more time to make decisions instead of rushing to submit an offer

3. Potential for Stabilized Home Prices

While home prices in Scottsdale remain high, an increase in inventory may slow down price growth, preventing extreme spikes. Buyers may not see significant price drops, but they can expect more reasonable pricing compared to the highly competitive markets of the past few years.

4. Opportunities for Move-Up Buyers

Homeowners who are looking to upgrade will find 2025 to be a favorable time to buy. More inventory means they have a better chance of finding their dream home without the stress of intense competition.

What This Means for Scottsdale Home Sellers

While an increase in inventory benefits buyers, sellers need to adapt to the changing market conditions to remain competitive.

1. More Homes for Sale Means More Competition

When fewer homes were available, sellers had the upper hand. Now, with more homes hitting the market, sellers need to work harder to make their listings stand out. This means:

• Pricing the home competitively

• Investing in professional staging and photography

• Marketing effectively to attract buyers

2. Pricing Strategy Becomes Crucial

Overpricing a home in a rising inventory market can lead to longer time on the market and fewer offers. Sellers need to work with an experienced Scottsdale real estate agent to determine the right price using a Comparative Market Analysis (CMA). Pricing the home correctly from the start can:

• Attract more interested buyers

• Reduce time on the market

• Prevent price reductions later on

3. Sellers May Need to Offer Incentives

As the market shifts, sellers who want to move their homes quickly may need to offer incentives to attract buyers. These can include:

• Offering to cover some closing costs

• Providing a home warranty

• Being flexible on closing dates to accommodate buyers’ schedules

4. Homes Need to Be in Prime Condition

With more inventory, buyers have the luxury of being pickier. Sellers should make sure their homes are well-maintained, staged, and presented in the best light possible. Investing in minor upgrades, such as fresh paint or updated landscaping, can make a big difference in attracting buyers.

How Scottsdale’s Housing Market Compares to National Trends

While the nationwide housing inventory is expected to grow by 11-15% in 2025, Scottsdale’s market may see variations due to its unique real estate landscape. Scottsdale is known for its luxury homes, resort-style living, and strong demand from both primary and secondary homebuyers. Here’s how the increase in inventory may play out locally:

1. Scottsdale’s Luxury Market May Experience More Growth

Higher inventory often leads to more options in the luxury sector, giving high-end buyers a better selection of homes. This could lead to longer listing times for sellers in this segment, making pricing and marketing strategies more important than ever.

2. Snowbirds and Investors Will Have More Choices

Scottsdale attracts many seasonal residents and real estate investors. With more homes on the market, these buyers will have a wider selection, possibly at more competitive prices, creating opportunities to secure prime properties.

3. Interest Rate Trends Will Influence Scottsdale’s Market

While Scottsdale remains a sought-after destination, rising mortgage rates have made some buyers hesitant. If interest rates stabilize or decrease in 2025, we could see an influx of buyers who were previously waiting on the sidelines.

How Buyers and Sellers Can Win in a Changing Market

Whether you’re buying or selling, strategy is key in 2025. Here’s how to navigate Scottsdale’s evolving real estate market successfully.

Tips for Buyers in 2025

1. Get Pre-Approved Early
   With more homes on the market, you’ll have options—but you’ll still need to act fast on the best properties. A mortgage pre-approval

shows sellers that you’re serious and ready to make an offer.

2. Work with a Local Real Estate Expert
   A Scottsdale-focused real estate agent will have the latest insights on market trends, helping you find the best deals and negotiate effectively.

3. Be Open to Different Neighborhoods
   With more listings available, now is a great time to explore different areas of Scottsdale that might offer better value or amenities that fit your lifestyle.

4. Consider New Construction
   More inventory often includes newly built homes. If you’re open to new construction, you might find move-in-ready properties with builder incentives such as closing cost assistance or upgraded features.

5. Don’t Wait for Prices to Drop Too Much
   While the increase in inventory may stabilize prices, Scottsdale remains a competitive market. Waiting too long could mean missing out on a home that fits your needs.

Tips for Sellers in 2025

1. Price Your Home Correctly from the Start
   Overpricing could result in your home sitting on the market longer. A competitive price attracts buyers quickly and may even lead to multiple offers.

2. Make Your Home Stand Out
   With more homes for sale, staging and high-quality photography are crucial. Professional images, virtual tours, and a well-maintained home will capture buyers’ interest.

3. Be Flexible with Showings and Negotiations
   The more flexible you are, the easier it will be to attract buyers. Be open to negotiating on terms such as closing costs or minor repairs.

4. Utilize Aggressive Marketing Strategies
   Your agent should use a combination of MLS listings, social media marketing, open houses, and email campaigns to maximize exposure.

5. Consider Offering Incentives
   To make your home more appealing, consider offering a home warranty, covering part of the closing costs, or even providing an interest rate buydown if the market calls for it.

Final Thoughts: What This Means for Scottsdale Real Estate in 2025

The projected rise in housing inventory for 2025 presents opportunities for both buyers and sellers in Scottsdale. Buyers will benefit from more options and less competition, while sellers must adapt to a more balanced market by pricing competitively and marketing effectively.

Whether you’re looking to buy or sell, working with a knowledgeable Scottsdale real estate agent will be key to navigating these changing conditions successfully.

Thinking about buying or selling in Scottsdale? Let us connect, visit my website Hello Scottsdale Arizona or contact me, Denise to discuss your real estate goals and develop a strategy that works for you in this shifting market!