The housing market in Chandler, Arizona, has been one of the most dynamic markets in recent years, with strong demand and limited supply driving up prices. However, the latest data indicates a shift in the market dynamics, as prices are correcting and homes are taking longer to sell. Chandler, AZ is a vibrant city located in Maricopa County, Arizona. With a population of over 260,000, Chandler is a hub of economic activity, with a strong technology and manufacturing industry.
Current Chandler, AZ Real Estate Market Trends
Chandler, AZ is experiencing a robust real estate market, characterized by increasing median listing home prices, a high sale-to-list price ratio, and a seller’s market status. These factors signify a favorable environment for sellers, while buyers need to act swiftly given the relatively short time homes spend on the market. In this analysis, we delve into the current market trends for the real estate scene in Chandler, AZ based on data from Realtor.com.
Current Median Listing and Sold Prices
As of October 2023, the median listing home price in Chandler, AZ stands impressively at $580K, reflecting a 6.4% year-over-year increase. The median listing home price per square foot echoes this growth, reaching $290. Meanwhile, the median home sold price settles at $522.5K. These figures showcase a thriving market, with both listing and sold prices painting a positive picture for homeowners and potential buyers alike.
Sale-to-List Price Ratio
The dynamics of the Chandler housing market become even more intriguing when we examine the sale-to-list price ratio, which currently stands at 98.85%. This indicates that, on average, homes in Chandler, AZ, sold for 1.15% below their asking prices in October 2023. The buyer-seller balance tilts slightly towards sellers, emphasizing the competitiveness of the market.
Market Dynamics: Seller’s Advantage
Chandler, AZ, asserts itself as a seller’s market in October 2023. The demand for homes surpasses the available inventory, creating an environment where sellers hold the advantage. This is highlighted by the median days on market, which stands at 32 days. Homes are selling relatively quickly, underscoring the high demand and competitive nature of the market.
Days on Market Trend
Delving deeper into the temporal aspect, the trend for median days on market in Chandler, AZ, reveals interesting insights. On average, homes sell after 32 days on the market. While this represents a slight increase since last month, it also reflects a downward trend since last year. The fluctuation in days on market showcases the dynamic nature of the Chandler housing landscape.
Here are some tips for buying a home in the Chandler housing market:
Get pre-approved for a mortgage before you start looking at homes. This will show sellers that you are a serious buyer and that you have the financing in place.
Be prepared to act quickly. Homes are selling for above asking price and are often going pending within days of being listed.
Be flexible with your budget. Home prices are still high in Chandler, so you may need to be willing to spend more than you originally planned.
Consider buying a fixer-upper. You can often find homes in Chandler that need some work for a lower price than move-in ready homes.
Work with a good real estate agent. A good agent will know the market and can help you find the right home for your needs.
Chandler Housing Market Forecast 2023-2024
As we look ahead to the future of the Chandler housing market, it’s essential to consider the forecasted trends and changes. The Chandler housing market has garnered considerable attention due to its dynamic nature and the interplay of various factors influencing property values. Let’s take a look a Zillow’s data.
As of October 31, 2023, the average home value in Chandler is $519,175, reflecting a 4.2% decrease over the past year. Homes in Chandler are moving quickly, typically going pending within approximately 16 days.
Key Metrics (Data through October 31, 2023):
Average Home Value: $519,175 (4.2% decrease over the past year)
Days to Pending: 16 days
Inventory and Listings:
For Sale Inventory (October 31, 2023): 639 homes
New Listings (October 31, 2023): 278
Sale and List Prices (Data through September 30, 2023, and October 31, 2023):
Median Sale to List Ratio (September 30, 2023): 0.997
Median Sale Price (September 30, 2023): $500,000
Median List Price (October 31, 2023): $571,333
Market Dynamics (Data through September 30, 2023):
Percent of Sales Over List Price: 28.3%
Percent of Sales Under List Price: 47.4%
These statistics paint a comprehensive picture of the Chandler housing market. The decrease in average home value over the past year may indicate shifting dynamics, while the quick turnaround in days to pending suggests a competitive market. The median sale price, median list price, and sale-to-list ratio provide crucial benchmarks for potential buyers and sellers to navigate the real estate landscape in Chandler.
Please note that these figures are based on data available as of October 31, 2023, and real estate markets can be subject to fluctuations. It’s advisable to consult with real estate professionals for the most up-to-date information and personalized advice.
Should You Invest in the Chandler Real Estate Market?
The Chandler real estate market has shown steady growth over the past few years, making it an attractive option for real estate investors. Here are some top reasons why investing in Chandler real estate may be a good decision, as well as potential drawbacks to consider:
Top reasons to invest in Chandler real estate:
Strong appreciation: Chandler real estate appreciated 139.53% over the last ten years, which is an average annual home appreciation rate of 9.13%, putting Chandler in the top 10% nationally for real estate appreciation (Neighborhoodscout).
Steady market: The market forecast for Chandler is positive in 2023, indicating a stable market with little fluctuation.
High demand: Chandler is a growing city with a population of over 260,000 people. Its strong job market and high-quality schools attract many young professionals and families, creating a high demand for housing.
The rental market in Chandler: Chandler also has a strong rental market, making it an attractive option for investors who are interested in purchasing properties to rent out. Chandler has a large population of young professionals and families, who may prefer renting over buying, creating a high demand for rental properties. Investors should consider the potential rental income and rental demand when evaluating investment opportunities in Chandler.
Thriving Economy: A good economy can be a reason to invest in Chandler real estate. Chandler has a thriving economy, with a diverse range of industries such as technology, healthcare, and retail. The city has been experiencing steady economic growth, with a low unemployment rate and a high job growth rate, making it an attractive destination for businesses and professionals. This economic growth has also led to an increase in population, which in turn drives demand for housing. The city has also been investing in infrastructure and public amenities, such as parks and recreational facilities, which can make it more attractive for both residents and businesses. Additionally, Chandler has a well-regarded school system, which can make it more appealing for families with children.
All of these factors can contribute to a strong real estate market in Chandler, with high demand for housing and the potential for appreciation in property values. Real estate investors can benefit from this by purchasing properties in areas with high demand and potential for growth and renting or selling them for a profit.
Potential drawbacks to consider:
High competition: Due to the high demand for housing in Chandler, investors may face competition when making offers on properties.
High home prices: While appreciation is a good sign for investors, it also means that home prices may be higher than in other markets, making it more difficult to find affordable investment opportunities.
High-interest rates: It’s worth noting that the high-interest rates could potentially impact the Chandler real estate market, as buyers may be deterred from taking out mortgages due to the increased costs. On February 27, 2023, the current average 30-year fixed mortgage interest rate is 7.02%, rising 19 basis points over the last seven days. Hence, borrowers may be less inclined to purchase homes, especially if they have other options available to them. Investors looking to buy in Chandler should carefully consider the impact of high-interest rates on their investment strategy, as they may need to adjust their expectations for return on investment. Additionally, the potential for inflation and rising costs should be factored into any investment decision.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Chandler, AZ is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
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Sources:
https://www.zillow.com/home-values/17384/chandler-az/
https://www.redfin.com/city/3104/AZ/Chandler/housing-market
https://www.realtor.com/realestateandhomes-search/Chandler_AZ/overview
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