Northeast Valley Real Estate Insights – April 2025

The first quarter is at an end. Spring Training is over. In real estate terms, will the “March showers” lead to “April flowers?” Or will “March madness” turn to “April sadness?”

In Q2, local market conditions will be influenced not only by the usual factors of stock market trends and interest rates, but now we must also consider the recent “tariff whiplash.”

Tariffs affecting imported construction materials such as steel, lumber, and luxury finishes will increase the cost of home renovations and new construction. This could impact the market in two ways:

1. Homes featuring recent upgrades or high-end imported materials may see price increases, as sellers and builders attempt to recover higher remodel and construction costs.
2. Owners looking to remodel before listing might face extended project timelines due to supply chain disruptions and higher costs.

This will likely keep demand high for move-in-ready properties. Sellers with well-maintained, updated homes may see a competitive advantage in the market.

The luxury real estate market is more directly influenced by stock market performance, while mortgage rates tend to affect mid-range buyers who require financing. Many high-net-worth buyers purchase homes with cash or alternative financing. When the stock market performs well, affluent buyers feel more financially secure and confident in making large real estate investments. However, recent stock market fluctuations have introduced uncertainty, causing some buyers to delay purchases while waiting for more stability.

If interest rates creep up again, that may slow activity in some price ranges. But the luxury market here remains fairly strong, driven by cash transactions and wealth-based purchasing power.

Inventory levels are up. Tina Tamboer, Senior Housing Analyst for The Cromford Report, notes that active listing counts have increased significantly year-over-year, with a 44% rise in listings compared to March 2024. This growing supply means buyers are gaining more negotiation leverage. But prime properties with upgrades, resort-style outdoor spaces and scenic views continue to attract strong demand.

The Phoenix luxury market is expected to remain resilient, with well-priced homes continuing to move. Buyers and sellers should stay informed and work with professionals who understand market dynamics to make the most of opportunities in April. The summer months will bring our typical seasonal slowdown, but right now motivated buyers and sellers can still achieve successful transactions with the right strategy.

Darrell Doepke is a full-time, RealTrends Verified Top 1% Realtor® in Arizona (2024), specializing in Carefree, Cave Creek, and North Scottsdale luxury homes. With a background in marketing and journalism, Darrell tells each home’s story to grab buyers emotionally. His narrated property videos showcase this strategy, and he invests more in marketing than most agents. He lives by his motto: “I don’t wait for buyers — I pursue them.” Darrell is VP of Community Partners and founder of Community Fest, an October event supporting local nonprofits. He is known for his SRES® designation assisting seniors; his Midwest values, and community leadership. Clients often say he’s the best Realtor® they’ve worked with.