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.
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.
Median Listing Home Price and Trends
In August 2023, the median listing home price in Chandler, AZ stood at $565,000, demonstrating a 1.6% year-over-year increase. This suggests a positive growth trajectory in the real estate market, indicating a favorable environment for sellers.
Price per Square Foot and Median Sold Price
The median listing home price per square foot was $294. Additionally, the median home sold price averaged at $503,000. These figures give potential buyers an insight into the current price dynamics in Chandler, AZ.
Sale-to-List Price Ratio and Market Dynamics
The sale-to-list price ratio in Chandler, AZ was an impressive 99.53% in August 2023. This high ratio indicates that homes were generally sold close to their asking prices, showcasing a strong seller's market.
In fact, Chandler, AZ is indeed a seller's market during this period, illustrating higher demand compared to the available housing inventory. This scenario places sellers in a favorable position.
Median Days on Market and Selling Trends
On average, homes in Chandler, AZ sell after 27 days on the market. This metric provides insights into the pace at which homes are being bought, reflecting the overall demand. Interestingly, the trend for median days on market has slightly decreased compared to the previous year, suggesting a relatively brisk selling pace.
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.
The housing market in Chandler is experiencing shifts in recent times. Currently, the average home value is $516,255, showing a significant 7.9% decrease over the past year. Properties in Chandler typically go pending in around 15 days, indicating a relatively swift sales process. These figures are accurate up to August 31, 2023.
Market Indicators and Sales Trends
- Median Sale to List Ratio (July 31, 2023): The median sale to list ratio stands at 0.994, highlighting the correlation between listing prices and actual sale prices.
- Percent of Sales Over List Price (July 31, 2023): A notable 25.0% of the sales were higher than the listed price, reflecting a competitive market.
- Percent of Sales Under List Price (July 31, 2023): Approximately 50.5% of the sales were below the listed price.
- Median Days to Pending (August 31, 2023): The median time for a property to go pending is 15 days.
Assessing the Housing Market in Arizona
Given the 7.9% decrease in the average home value over the past year in Chandler, there is a notable decline in house prices. This could be influenced by various factors affecting the real estate market. However, it's important to consider that real estate trends can vary from one city to another within a state, and what's true for Chandler may not apply to the entire state of Arizona.
For a comprehensive understanding of whether the housing market is dropping in Arizona as a whole, it's essential to analyze statewide data and trends rather than focusing solely on one city.
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: 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.
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
