Chandler Housing Market Trends in 2023
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.
As such, the Chandler housing market is closely tied to the overall economic trends in the region. In this report, we will analyze the latest trends in the Chandler housing market, with a focus on the median listing and selling prices, the sale-to-list price ratio, and the median days on the market. We will take a closer look at the current housing market trends in Chandler based on the latest report released by credible real estate firms.
Median Sale Price
According to Redfin, the median sale price of homes in Chandler in January 2023 was $485,000, which is a 1.3% decrease compared to the same period last year. This indicates that the Chandler housing market is experiencing a minor correction, as prices have been decreasing since last year. While this may be concerning for homeowners who are looking to sell their homes, it could present an opportunity for buyers to purchase homes at more affordable prices.
Days on Market
The average number of days that homes in Chandler were on the market in January 2023 was 67 days, compared to 29 days in January 2022. This means that homes are taking longer to sell in Chandler, which could be attributed to the current correction in the housing market. As a result, home sellers may need to adjust their pricing and marketing strategies to attract potential buyers.
Market Competitiveness
Chandler is considered to be a somewhat competitive housing market, with homes receiving an average of two offers and selling for about 3% below the list price. Hot homes in Chandler can sell for around the list price and go pending in around 33 days. Compared to other cities in the area, Chandler is somewhat more competitive than Gilbert, which is another city in Maricopa County. Gilbert is also experiencing a correction, with homes selling for about 3% below the list price and going pending in around 52 days. In contrast, the city of Tempe is not very competitive, with multiple offers being rare and homes taking an average of 87 days to go pending.
Migration and Relocation Trends
According to Redfin.com data, 3% of homebuyers searched to move into Chandler from outside of the metro area. The top three metros where buyers searched to move to Chandler were Seattle, Los Angeles, and Tucson. 75% of Chandler homebuyers searched to stay within the Chandler metropolitan area, with the most popular destinations being Prescott Valley, Show Low, and Flagstaff. This indicates that Chandler is a popular destination for homebuyers who are looking to relocate within the area.
Median Listing Home Price
The following Chandler housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. In January 2023, the median listing home price in Chandler, AZ was $530K, which was a 2% increase from the same period last year. The median listing price per square foot was $284. This increase in median listing price is an indication of the strong demand for housing in the city, driven by the growth in employment opportunities.
The median home sold price in Chandler, AZ was $485K, which was slightly lower than the median listing price. This suggests that sellers may be willing to negotiate on the price, and buyers may have some room for bargaining. The sale-to-list price ratio was 97.69%, indicating that homes in Chandler, AZ sold 2.31% below the asking price on average in January 2023.
Seller's Market
The current trends suggest that Chandler, AZ is a seller's market, which means that there are more buyers than there are homes available for sale. This puts upward pressure on the prices, making it a great time for sellers to put their homes on the market. On average, homes in Chandler, AZ sell after 74 days on the market. This is slightly up from last year, indicating that the market is slowing down slightly. However, it is important to note that this is still a relatively short period of time, indicating that the demand for housing in Chandler remains strong.
Hence, the data suggest that the Chandler housing market remains strong, with increasing median listing prices, high sale-to-list price ratios, and relatively short median days on the market. Although the market has slowed down slightly since last year, it is still a great time for sellers to put their homes on the market, as the city continues to attract new residents and businesses. For buyers, it may be important to act quickly when a desirable property becomes available, given the strong demand for housing in the area.
Chandler Housing Market Forecast 2023-2024
According to the latest data from Zillow, the Chandler housing market has seen a 3.6% increase in average home values over the past year, with the typical home value now standing at $494,571 as of January 31, 2023. This information can be particularly useful for home buyers and sellers who want to keep up with market trends.
The median days to pending for homes in Chandler is currently 50 days, indicating that properties are selling at a moderate pace. Additionally, the market forecast for the next twelve months is positive, which means that the market is expected to remain steady. When it comes to sales, Zillow's data shows that as of December 31, 2022, the median sale-to-list ratio was 0.978, indicating that homes were selling close to their asking price.
Of all sales made in Chandler during this period, 11.4% were sold over the list price, indicating that some sellers were able to command a premium for their homes. The fact that 71.3% of sales were made under the list price suggests that many homes were priced too high for the market and had to be discounted to sell. Additionally, the median days to pending of 50 days suggests that the market is relatively balanced, with homes taking about a month and a half to sell on average.
This means that both buyers and sellers may have some leverage in negotiations, and it's not necessarily a clear-cut seller's market. It's worth noting that Zillow's data also provides a historical overview of the Chandler housing market's average home values, which have risen steadily since Oct 2014. In that year, the average home value in Chandler was $260K, which has since risen to $494,571 in January 2023.
In conclusion, the data from Zillow can be a useful resource for anyone interested in the Chandler housing market, whether they are buyers, sellers, or real estate professionals. In addition to the data provided, Zillow also offers tools to connect with local agents and explore financing options, which can be invaluable resources for anyone looking to buy or sell a home in Chandler.
Should You Invest In 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: According to Zillow's data, the typical home value in Chandler is $494,571, which represents a 3.6% increase over the past year. This suggests that the market has been appreciating at a steady rate.
- 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.
- Favorable sales ratio: While 71.3% of sales in Chandler are sold under the list price, 11.4% are sold over the list price, indicating a seller's market where homes are selling quickly. Even though 71.3% of sales are sold under the list price, this figure does not necessarily indicate a weak market. In fact, it may suggest that sellers are pricing their homes competitively, and buyers have a range of options to choose from. This can create a healthy balance between supply and demand, leading to a more stable market.
- 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.
The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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
