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?
Median Home Prices on the Rise
According to the data from Realtor.com, in March 2024, the median listing home price in Chandler stood at $569.5K, showing a 5.5% increase compared to the previous year. This uptrend reflects the robust demand for housing in the area. Additionally, the median listing home price per square foot was $302, indicating the premium buyers are willing to pay for properties in this sought-after locale. Moreover, the median home sold price was $546.5K, underscoring the value of homes in Chandler.
Market Dynamics: Seller's Advantage
Chandler, AZ is currently experiencing a seller's market as of March 2024. This means that demand from buyers outweighs the supply of available homes. With a sale-to-list price ratio of 99.31%, homes in Chandler are selling close to their asking price, highlighting the competitive nature of the market.
On average, homes in Chandler spend approximately 39 days on the market before being sold. While this may seem like a short timeframe, it's important to note that the median days on market have seen a slight increase compared to previous periods. This suggests a shift in market dynamics, indicating a need for both buyers and sellers to stay informed and act decisively.
Implications for Buyers and Sellers
For buyers, navigating the Chandler housing market requires swift action and strategic planning. With homes selling quickly and often at or near asking price, it's essential to be prepared to make competitive offers and work closely with a knowledgeable real estate agent.
On the other hand, sellers stand to benefit from the current market conditions in Chandler. With high demand and favorable pricing, sellers have the opportunity to maximize the value of their properties. However, it's crucial for sellers to price their homes strategically and ensure they are in top condition to attract potential buyers.
As we look to the future, the Chandler housing market is poised to remain dynamic and competitive. Factors such as population growth, economic stability, and housing inventory will continue to influence market trends.
Chandler Housing Market Forecast for 2024 and 2025
Chandler, Arizona, boasts a thriving housing market that has been steadily on the rise in recent years. According to Zillow, the average home value in Chandler currently stands at $531,446, reflecting a 4.0% increase over the past year. This upward trend indicates a positive outlook for both buyers and sellers in the area.
Key Housing Metrics Explained
For Sale Inventory:
As of March 31, 2024, Chandler had a total of 709 homes listed for sale. This inventory level provides prospective buyers with a variety of options to choose from, catering to different preferences and budgets.
New Listings:
In March 2024, Chandler saw 306 new listings enter the market. This influx of new properties indicates ongoing activity and interest in the housing market, offering buyers fresh opportunities to find their ideal home.
Median Sale to List Ratio:
The median sale to list ratio, which stood at 0.986 as of February 29, 2024, provides insight into the competitiveness of the market. A ratio below 1 suggests that homes are selling for slightly below their list price, indicating room for negotiation for buyers.
Median Sale Price:
As of February 29, 2024, the median sale price in Chandler was $506,833. This figure represents the middle point of all home sale prices in the area, providing a benchmark for both buyers and sellers to reference.
Median List Price:
The median list price, which stood at $559,817 as of March 31, 2024, reflects the average asking price for homes currently on the market. This figure gives insight into sellers' expectations and helps buyers gauge the affordability of available properties.
Percent of Sales Over and Under List Price:
In February 2024, 17.3% of home sales in Chandler were recorded above the list price, while 63.2% were below the list price. These percentages highlight the negotiation dynamics within the market, with some properties fetching higher prices than listed and others selling below the asking price.
Are Home Prices Dropping in Chandler?
As of the latest data, there is no indication of a significant drop in home prices in Chandler. While market conditions may fluctuate, the overall trend has been one of appreciation, with home values steadily increasing over the past year. However, it's essential to monitor market trends closely for any shifts that may occur in the future.
Will the Chandler Housing Market Crash?
Predicting a housing market crash with certainty is challenging due to the numerous factors at play. While Chandler's housing market currently shows signs of stability and resilience, external factors such as economic conditions and policy changes could impact its trajectory. However, based on current data and market trends, there is no immediate indication of an impending crash.
With mortgage rates lower compared to last year, now could be an opportune time for prospective buyers to enter the market. Lower mortgage rates translate to reduced borrowing costs, making homeownership more affordable for many. Additionally, while the market leans towards sellers, buyers can still find value and negotiate favorable terms, especially with a diverse range of properties available for sale.
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
