The Arizona real estate market shows no signs of slowing down as it continues to see significant growth in both home sales and prices. According to the latest data released on February 22, 2026, by the Arizona Association of Realtors, the state's housing market remains red hot, with demand outpacing supply.Home sales in Arizona have surged by 15% compared to the same time last year, with over 10,000 transactions recorded in the past month alone. The median home price in the state has also reached a new high, climbing to $400,000, an increase of 12% from last year.One of the driving factors behind the booming real estate market in Arizona is the influx of out-of-state buyers, particularly from California and other high-cost regions. The affordability of homes in Arizona, coupled with the state's favorable climate and quality of life, has made it an attractive destination for those looking to relocate.In addition to strong demand from buyers, the supply of homes for sale in Arizona remains limited. Inventory levels have dropped by 20% compared to last year, putting further pressure on prices and leading to multiple offer situations on many properties.Experts predict that the Arizona real estate market will continue to see robust growth in the coming months, driven by low interest rates, a strong economy, and the state's desirability as a place to live. However, concerns have been raised about affordability, as rising prices may put homeownership out of reach for some residents.Despite these challenges, real estate professionals remain optimistic about the future of the Arizona housing market, citing the state's strong fundamentals and growing population as key drivers of continued growth. As the market continues to evolve, it will be important for buyers and sellers to stay informed and work with experienced professionals to navigate the complexities of the real estate landscape in Arizona.