Central Phoenix Home Prices Jump 44% in Year

ZIP code 85012 posted the largest price increase in metro Phoenix while seller concessions hit a record high across the Valley.

Updated on Nov. 1, 2026 in Residential

Central Phoenix Home Prices Jump 44% in Year

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In the year ended September 30, 2026, median home prices in ZIP code 85012 in central Phoenix rose 44.2% to $724,500, the largest increase in the metro area. Over the same period, more than 59% of Phoenix-area homes closed with seller-funded deals, an all-time high.

Why it matters

The divergence shows that residential price trends in the Phoenix area vary sharply by neighborhood, with some ZIP codes rising while others fell. Heavy use of seller concessions also indicates buyers are negotiating harder than headline prices alone suggest.

Median prices come from Arizona Regional Multiple Listing Service sales data, and the 85012 median rose on just 18 sales, down almost 44% from the prior year. Valley-wide, the median was flat at $450,000 in September 2026 compared with a year earlier, and home sales fell to 5,672 from 6,083.

The players

Arizona Regional Multiple Listing Service

The Arizona Regional Multiple Listing Service is the shared database of residential property listings and sales used by brokers across the Phoenix metro area.

The details

Median prices in several Phoenix-area ZIP codes moved sharply in opposite directions over the past year. ZIP code 85003 in central Phoenix fell almost 34% to $517,500, while 85013 dropped 22% to $425,000 and 85018 in Arcadia fell 21% to $947,246.

- Year ended September 30, 2026: ZIP code 85012 median price rose to $724,500.
- September 2026: Valley median home price held flat at $450,000.

Market Landscape

Seller concessions reaching an all-time high in metro Phoenix, with more than 59% of homes closing with seller-funded deals, extend a negotiating pattern visible in regional MLS data. The average concession for Valley buyers now exceeds $10,000 and often includes mortgage buydowns that lower interest rates by about 2 percentage points.

Buyers in the Phoenix area may be able to negotiate seller concessions or mortgage buydowns, which can lower effective borrowing costs even where list prices are high. Nearly 49% of Valley homes for sale have already had a price cut, giving buyers leverage in negotiations.

The takeaway

Looking only at metro-wide medians can hide large neighborhood differences, so buyers and sellers in the Phoenix area should check ZIP-code data before pricing or negotiating. Seller concessions and price cuts are a major part of current deal structures.