With renewed buyer activity and sellers looking to capitalize on an appreciating market, real estate professionals who are eager to adapt to changing conditions and client needs are best positioned for success in 2025 and beyond.

Across the board, the real estate industry entered the new year with renewed hope after a positive end to a sluggish 2024. Bright spots in the Valley’s December market performance indicate confidence is trending upward after last year’s unexpected economic twists and turns. Even with some uncertainty still on the horizon, these tailwinds are sure to spur interest and activity.

Existing home sales in the United States improved for the second consecutive month to 4.15 million units in December. That represents the largest year-over-year increase since June 2021. Phoenix experienced a modest 0.6% year-to-date increase in closed sales; however, sales surged in December, reaching 4,601 transactions – a 15.7% year-over-year jump.

With 17,000 single-family homes on the Valley market to start the year, REALTORS® who are prepared to navigate the unique needs of today’s buyers and sellers will have plenty of opportunity to succeed and set themselves apart from the competition.

Understanding buyer motivations

Phoenix attracts a diverse pool of buyers, from first-time homeowners to retirees looking to downsize. These buyers have diverse profiles, each requiring tailored guidance. Agents who customize their approach to each type of buyer can strengthen client trust and ensure a smooth transaction.

These prospective clients are moving to Phoenix for reasons such as job changes, proximity to family, finding the right school district and maximizing cost of living differences.

• First-time buyers need more guidance: The average age of the first-time buyer is 38, financially stable and established in their careers. While these clients may have a strong financial foundation, they often require direction in the process. By walking these clients through each step of the homebuying journey, an agent can establish themselves as a trusted advisor and build long-term relationships.
• Millennials & Generation Z value homeownership: Younger buyers still aspire to be homeowners despite affordability concerns. These buyers see homeownership as a way to build generational wealth. Introducing creative financing solutions such as adjustable-rate mortgages (ARMs) or down payment assistance programs can help these clients overcome financial barriers.
• Retirees are downsizing: Phoenix remains a top destination for retirees seeking to find a “forever” home as it offers relative affordability and lifestyle benefits compared to other markets. By addressing these needs and preferences, agents can connect with this established segment of the housing market.

Understanding seller motivations

The increasing inventory suggests that sellers recognize the potential for higher property values. By understanding each seller’s goals, agents can secure more listings, negotiate better deals and close transactions more efficiently, leading to higher client satisfaction and possible referrals after the deal.

• Top-dollar sellers: Some homeowners are motivated to sell their homes quickly and maximize their returns. Advising on staging, pricing strategies and market timing can increase the home’s marketability and command a top price.
• Sellers with financial constraints: Budget limitations may impact a seller’s ability to make repairs or offer concessions. Those who understand repair negotiations, appraisal contingencies and closing assistance can help clients sell their homes faster while minimizing out-of-pocket costs.
• Time-driven sellers: Other sellers require flexibility to sell their home, whether that’s aligning the sale with a new home purchase or requiring post-closing possession. Agents add significant value to both buyers and sellers by structuring deals that accommodate their unique timelines.

Building lasting relationships

REALTORS who consistently nurture client relationships will stay top-of-mind, which will lead to building a more resilient business in shifting market cycles.

• New agents can establish a presence by hosting open houses and reaching out to their personal and professional contacts to generate initial leads and references.
• Networking groups and opportunities can increase collaboration with other professionals, establish credibility and jumpstart a book of business.
• Personal touches like birthday calls, holiday cards and hosting client appreciation events help maintain strong relationships.

Professionals also need to stay engaged in market trends, financing options and industry updates to maintain their status as trusted advisors.

Navigating the road ahead

As REALTORS are eager to have a rebound year in 2025, success will hinge on prioritizing client needs. Whether it’s guiding a first-time homebuyer through the complexities of financing or assisting sellers on the best deal they can make, the ability to adapt and provide value will define success.

In an increasingly competitive landscape, market expertise and personalized service will be the defining factors for both short-term and long-term success.

Christy Walker is president of the Board of Directors of Phoenix REALTORS®, a member-first organization serving more than 11,000 real estate sales professionals in the Valley. More at PhoenixRealtors.com.