What’s happening in the Chandler AZ Real Estate Market?

Chandler AZ Real EstateWow!  What a difference a couple months make. If you’re like most people your confused and are wondering what’s happening in the Chandler AZ Real Estate Market.  3 months ago, your neighbor sold their overpriced home in 3 days with multiple offers.  You’ve decided to sell your home and are surprised to hear your home may not sell for much more than your neighbor’s home sold for and it will probably take a little longer.  What about that crazy rise in home values you’ve heard about.  Why doesn’t it apply to your home now?

Here’s the thing…the real estate market is a living breathing organism.  NO ONE can predict it because so many variables affect it.

Where did all the buyers go?

Home sellers have been calling the shots for about 2 years due to lack of inventory.  Homes on the market just a few days and multiple offers in many instances.  However, over the last few months, buyer activity has declined and home inventory has risen.  With approximately 23,000 homes for sale in the Chandler AZ real estate market including the surrounding Phoenix area, we are not yet in what is considered a balanced market (about 30,000 listings in valleywide).  Search Chandler AZ Real Estate as well as the surrounding Pheonix area.

Homes priced under $250,000 are still a desirable commodity and are sold in days if not hours  with multiple competing offers often driving up the price.  For homes over $275,000 however, we are starting to see price reductions.  Sellers who could “push the envelope” and price on the high end of market value are now finding little buyer activity and are reducing their list prices to market value.

Why the change?  Several factors play into the changing market.

  • Investor buyers drove home prices up quickly.  Many investors are now priced out of the market.
  • Home interest rates rose.  While home loans are still very affordable, many buyers lost confidence as rates climbed daily.  I’ve heard that interest rates may be going down again which would be a good thing as our market could use some new interested buyers.
  • Big news – It’s hot in the desert in the summer.  We typically see a little less interest from buyers who don’t want to traipse around in the heat during the summer months.
  • Rising inventory.  As prices rise, many “underwater” homeowners now have equity in their homes.  Homeowners who have been waiting to be in a positive equity situation can finally sell without bringing money to the closing table.  Buyers are being a little more picky as they have more choose from and are watching with interest as daily price reductions on homes for sale are announced.

How many homes are for sale in Chandler, AZ and the surrounding Phoenix area?

Today there are 20,220 homes actively for sale on the Arizona Regional MLS.  This number is up about 30% from last year at this time and astonishingly, is up about 11% from last month alone.

How are home sales going?

There are 9513 home listed as Pending or UCB (Under Contract Taking Backups).  That’s almost 40% lower than what was under contract last year at this time and down about 9% from last month.

What about home prices? 

Home values are still trickling upward though at a slower pace than they were a year ago.  Home values have risen an average of approximately 18.5% over last year and about 1% in the last month.  With the number of price reductions we are seeing, however, I  anticipate rising values will taper off and maybe even flatten out beginning January when we typically see our highest number of new listings after the holidays.  The increased inventory will create increased competition.  A great thing for buyers.

We haven’t seen a balanced market since 2002.  Hard to even remember what that looked and felt like.  Once we all settle in, it will be a nice calm ride which will be a nice change of pace from the stormy seas we’ve been riding in over the last 12 years.

 

About Amy Jones Group

Amy Jones is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.