Northeast Valley Real Estate Insights – October 2025

I hear this question a lot: “How’s the real estate market?”

Quite often, someone is just wanting to make casual small talk; they really aren’t considering a move. Or they’re just curious how I’m faring in the real estate world. But sometimes they really do want to know.

My casual reply would sound something like this: “It’s steadying. Rates are easing, sellers are coming back, luxury homes are still moving — just with a little more back-and-forth on price. Not as crazy as a couple years ago, but definitely active.”

A more serious answer backed by some data would sound like this: “The market is stabilizing. Here in the northeast valley, homes priced between $1-$1.5 million have been selling for around 96% of asking price. Days On Market is still in the 90-120 day range. But we’re starting to see an uptick in activity. It’s too early to tell what 4th Quarter will look like because we’re still dealing with global uncertainty, shifting interest rates, and seller psychology.”

As anticipated, the Federal Reserve trimmed the prime rate by half a point, but mortgage markets had already reacted. Even so, I know that even a modest rate cut can add momentum to the luxury tier, where the impact is often more psychological than financial.

“Luxury buyers don’t typically need financing,” said Tina Tamboer of The Cromford Report. “But they watch rates because they influence market momentum. Lower costs encourage more offers, and that ripples through pricing confidence.”

The rate reduction should expand the pool of qualified buyers, particularly those needing jumbo loans. In luxury neighborhoods, that could translate into shorter Days on Market for listings, and higher List Price/Sold Price ratios.

Unlike the insane Covid-fueled bidding wars of 2021 and 2022, luxury transactions now involve careful negotiation. Buyers are testing price ceilings, sellers are weighing days on market against the costs of keeping the home, and some concessions are back in play.

So next time I’m in an elevator and someone asks me, “How’s the market?” my answer would be: “It’s stabilizing.”

Stability is a good thing. It breeds confidence; I can feel it slowly rebuilding in this market. For buyers, that means opportunity. For sellers, it means that a solid, thoughtful strategy matters more than ever.

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.