Published October 25, 2026 in Market Update

South Phoenix does not move at one speed

By Vanessa Aragon

Real estate, South Phoenix

Here is the one thing that changes your plan. The Real Estate Data Aggregator found that 35.7% of homes in 85040 went under contract within two weeks. In 85034, that number was 0%. Same South Phoenix, very different story.

That gap is what this post is about. One plan will not fit every seller or buyer here. Where you are matters more than the overall market.

How fast homes moved, by ZIP code

All numbers below are from the Real Estate Data Aggregator for the three months ending August 31, 2026.

85034 had 0% of homes go under contract within two weeks, per the Real Estate Data Aggregator. The median days on market there was 138 days. That is a very different pace from 85040 or 85003.

Not every ZIP had slower sales across the board, though. Realtor.com reported that mortgage rates topped 7% in September 2026. That is a real weight on buyers everywhere, including South Phoenix.

How long homes sat, by ZIP code

85009 and 85040 both sat at 45 days, per the Real Estate Data Aggregator. 85034 sat at 138 days. That is nearly three times as long. Pricing and preparation matter a lot when the gap is that wide.

What sellers got at closing

Realtor.com reported that 29.0% of listings in Phoenix-Mesa-Chandler had price reductions in September 2026. That lines up with what the Real Estate Data Aggregator shows for some South Phoenix ZIPs.

85034 sellers averaged only 91.8% of their list price, per the Real Estate Data Aggregator. In 85042, sellers averaged 98.7%. That gap of about 7 points is real money on any sale.

Prices across South Phoenix

Realtor.com put the Phoenix-Mesa-Chandler median list price at $475,000 in September 2026. South Phoenix runs both above and well below that, depending on the ZIP.

85003 came in at $738,750 median sale price. 85009 came in at $304,000. That is a $434,750 spread across one market. Where your home sits in that range shapes everything.

The wider picture

The Federal Housing Finance Agency reported that U.S. house prices rose 2.6% from July 2025 to July 2026. South Phoenix ZIPs are all over that benchmark. Some beat it, some fell short.

CNBC reported that a monthly payment on a median-priced home took roughly 33% of a median family's income in 2025. That was 26% in 2022. Buyers feel that shift. It slows decisions in slower ZIPs more than in faster ones.