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, you’ll learn 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.
House Prices and Trends
According to Redfin, the median sale price of homes in Chandler was $510,000 last month, showing a decrease of 9.73% compared to the previous year. This decline in prices is an essential factor to consider for both buyers and sellers in the market. Additionally, the median sale price per square foot in Chandler stands at $286, reflecting an 8.2% decrease from the previous year.
Competitiveness of the Chandler Housing Market
The Chandler housing market can be described as somewhat competitive. On average, homes in Chandler receive two offers and sell within 35 days. While this indicates a moderately competitive market, it is important to note that the average time it takes for homes to sell has increased from 18 days compared to the previous year.
Comparison with Nearby Cities
To gain a better understanding of the Chandler housing market, it is helpful to compare it with nearby cities. When compared to other locations, Chandler stands out as somewhat competitive. The average homes in Chandler sell for about 1% below the list price and go pending in around 40 days. In contrast, nearby cities exhibit varying levels of competitiveness, with some experiencing multiple offers and shorter time on the market.
Migration and Relocation Trends
Chandler has attracted a significant number of homebuyers from outside metros. Among those interested in moving to Chandler, Seattle, Los Angeles, and Tucson rank as the top three metropolitan areas of origin. Additionally, 75% of homebuyers in Chandler prefer to stay within the Chandler metropolitan area. The most popular destinations for those leaving Chandler include Prescott Valley, Show Low, and Flagstaff.
These stats indicate that the Chandler housing market has experienced a decline in median sale prices compared to the previous year. Although the market is somewhat competitive, homes in Chandler tend to receive two offers and sell within 35 days on average. The city attracts homebuyers from outside metros, while many current residents choose to remain within the Chandler metropolitan area.
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. According to the latest data from Zillow, currently, the average home value in Chandler is $502,221, showing a decrease of 4.2% over the past year. Homes in Chandler tend to go pending within approximately 24 days, indicating a moderately fast-paced market.
Average Home Values
The average home value in Chandler stands at $502,221, as of May 31, 2023. This figure represents a decline of 4.2% over the previous year, highlighting a shift in the housing market. Homeowners and potential buyers need to be aware of this trend and its potential implications.
Examining the sales data, we find that the median sale-to-list ratio in Chandler was approximately 0.984 as of April 30, 2023. This ratio indicates that, on average, homes sell very close to their listing prices. Additionally, 17.2% of sales in Chandler were above the list price, while 62.6% were below the list price during the same period.
Chandler’s Position in the Phoenix-Mesa-Chandler Metropolitan Statistical Area
Chandler is a part of the Phoenix-Mesa-Chandler Metropolitan Statistical Area (MSA). This MSA encompasses a larger region, including Phoenix, Mesa, and Chandler. The Phoenix-Mesa-Chandler MSA is a significant metropolitan area in Arizona, known for its economic growth, cultural diversity, and vibrant housing market.
Considering the forecast for the Phoenix-Mesa-Chandler MSA, we can anticipate further growth and development in the region. As of May 31, 2023, the MSA is projected to experience a 0.1% growth by June 30, 2023, followed by a 0.6% growth by August 31, 2023. Looking further ahead to May 31, 2024, the forecast indicates a substantial growth of 5.8% for the Phoenix-Mesa-Chandler MSA.
It’s worth noting that these forecasts are subject to various factors and market dynamics, and actual outcomes may differ. However, they provide valuable insights into the overall direction of the housing market in the larger metropolitan area, which includes Chandler.
Overall, the Chandler housing market is currently experiencing a slight decline in average home values. However, the market remains moderately fast-paced, with homes going pending within around 24 days. As part of the Phoenix-Mesa-Chandler Metropolitan Statistical Area, Chandler is positioned within a larger region that is forecasted to see continued growth in the coming months and years.
For homeowners and potential buyers in Chandler, staying informed about market trends and forecasts is crucial for making informed decisions. By keeping a close eye on the housing market and understanding the dynamics at play, individuals can navigate the Chandler housing market more effectively.
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. 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.
Give me a call and lets discuss your scenario and create a successful transaction that makes sense for you! Christy Crouse 480.332.5925
*Author credit: Marco Santarelli