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.
How is the Chandler housing market doing currently?
According to the data from Realtor.com, the current state of the Chandler, AZ housing market leans towards sellers, making it a seller's market in February 2024. The demand outweighs the available inventory, creating a competitive landscape.
Median Listing Home Price Surges
In February 2024, the median listing home price in Chandler, AZ stands at an impressive $585K, reflecting a noteworthy 6.6% year-over-year increase. This upward trajectory signifies the robust demand and growth within the housing market of this vibrant city.
The median listing home price per square foot is $298, underscoring the value and potential return on investment for prospective homebuyers in Chandler, AZ.
Median Home Sold Price Insights
For those interested in recent sales, the median home sold price in Chandler, AZ was recorded at $537.5K. This data provides a snapshot of the prevailing market rates and helps both buyers and sellers make informed decisions.
Sale-to-List Price Ratio: A Sign of Stability
One notable indicator of market stability is the 99.61% sale-to-list price ratio. Homes in Chandler, AZ sold for approximately the asking price on average in February 2024. This suggests a well-balanced and healthy real estate environment.
Days on Market Trends
On average, homes in Chandler, AZ are spending 38 days on the market. This figure not only highlights the brisk pace of real estate transactions but also signifies the desirability of properties in the area. The trend for median days on the market in Chandler, AZ has decreased compared to the previous month and slightly since last year.
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.
- 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 for 2024 and 2025
1. Average Chandler Home Value:
According to Zillow, as of January 31, 2024, the average Chandler home value stands at $516,887, reflecting a modest but notable 1.3% increase over the past year. This statistic not only indicates the market's resilience but also suggests a positive trend in property appreciation.
2. Days to Pending:
One of the critical metrics to gauge the market's vitality is the average time a property takes to go pending. In Chandler, homes tend to attract buyers swiftly, with an average of 24 days from listing to pending, underscoring the demand and efficiency in the local real estate landscape.
3. For Sale Inventory:
As of January 31, 2024, the Chandler housing market boasts a for sale inventory of 674 properties. This figure encapsulates the choices available to prospective buyers, influencing their decision-making process and contributing to the overall market dynamics.
4. New Listings:
In the same timeframe, the market has seen 240 new listings, signaling ongoing activity and a continuous influx of properties into the market. This metric is indicative of the market's vibrancy and the sustained interest of sellers in meeting the demand.
5. Median Sale Price:
Examining data from December 31, 2023, the median sale price in Chandler was $504,833. This figure serves as a benchmark, offering valuable insights into the pricing trends and the overall affordability of homes in the region.
6. Median List Price:
As of January 31, 2024, the median list price for properties in Chandler is $572,150. This metric, in conjunction with the median sale price, provides a snapshot of the pricing expectations set by sellers and the negotiation dynamics in the market.
7. Median Sale to List Ratio:
The median sale to list ratio as of December 31, 2023, is 0.986. This ratio reflects the effectiveness of pricing strategies, with a ratio close to 1 indicating that properties are typically selling close to their listed prices.
8. Percent of Sales Over and Under List Price:
Examining the market dynamics from December 31, 2023, we find that 16.3% of sales were over list price, underscoring the competitiveness in certain segments. Conversely, 63.6% of sales were under list price, providing opportunities for savvy buyers to secure deals below the listed prices.
Are Home Prices Dropping in Chandler?
Contrary to concerns about dropping home prices, the data reveals a 1.3% increase in the average Chandler home value over the past year. This uptrend suggests that the market is resilient, and home values are holding steady. While fluctuations can occur, the current data does not support the notion of a significant drop in home prices in Chandler.
Will the Chandler Housing Market Crash?
The analysis of the Chandler housing market does not indicate an imminent crash. The modest increase in home values, coupled with a balanced inventory and reasonable transaction timelines, points to a stable market. However, it's essential to monitor economic indicators and external factors that could influence the real estate landscape. At present, the data suggests a healthy and sustainable market condition.
Is Now a Good Time to Buy a House in Chandler?
Considering the current state of the Chandler housing market, it appears to be a favorable time for prospective buyers. With a balanced inventory, reasonable transaction timelines, and a 16.3% share of sales over list price, buyers may find opportunities to secure properties at competitive prices. However, individual circumstances and long-term goals should always be considered when making such significant decisions.
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.
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