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, Chandler is a seller's market in December 2023, which means that there are more people looking to buy than there are homes available.
In December 2023, Chandler witnessed a surge in the median listing home price, reaching an impressive $580,000. This marks a substantial 11.8% year-over-year increase, reflecting the city's robust real estate growth. The median listing home price per square foot stood at $292, showcasing the premium value attached to properties in Chandler.
One key indicator of the market's health is the sale-to-list price ratio, which stood at 98.36% in December 2023. This means that, on average, homes in Chandler sold for 1.64% below the asking price. The city's real estate landscape leans towards sellers, creating a scenario where demand surpasses the available housing inventory.
The median days on market, a crucial metric reflecting the pace of home sales, averaged 48 days in December 2023. This implies that, on average, homes were on the market for just under seven weeks. The trend in median days on market has experienced a slight increase from the previous month, yet it remains marginally lower compared to the same period 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
The Chandler housing market, as of December 31, 2023, provides valuable insights into various metrics that shape the dynamics of buying and selling homes in the area.
Chandler Home Values: $515,138 and Beyond
The average home value in Chandler stands at $515,138, reflecting a marginal decline of 0.4% over the past year. This statistic offers a snapshot of the market's resilience, considering the various economic factors that influence property values.
Time on Market: 25 Days to Pending
One notable metric in the Chandler housing market is the swift pace at which homes go to pending status. The average duration is approximately 25 days, indicating a market that is active and responsive to buyer interest.
Housing Metrics Demystified
Let's break down the key housing metrics to gain a deeper understanding:
- For Sale Inventory (December 31, 2023): 677
- New Listings (December 31, 2023): 230
- Median Sale to List Ratio (November 30, 2023): 0.992
- Median Sale Price (November 30, 2023): $506,167
- Median List Price (December 31, 2023): $574,483
- Percent of Sales Over List Price (November 30, 2023): 22.0%
- Percent of Sales Under List Price (November 30, 2023): 54.2%
Are Home Prices Dropping in Chandler?
While the average home value has experienced a slight decrease over the past year, it is important to note that this decline is marginal. The market remains resilient, and the overall trend indicates stability rather than a significant drop in prices.
Based on the current data, there is no imminent sign of a housing market crash in Chandler. The market's performance, including the time on market and pricing metrics, suggests stability and resilience against drastic downturns.
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.
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