Chandler’s median home price stands at $310,000, up nearly 15% from the preceding year’s $270,000.
Homes closed at an average of $156/square foot vs. $148 in 2016. Chandler’s prices continue to rise above traditional FHA loan limits, indicating we will see a shift towards more conventional financing with larger down payments.
The current pending home sales price stands at $299,900 and $165 per square foot after just 28 days of being on the market. There are 530 homes scheduled to close in the next 30-45 days, with available inventory of 677 listings.
We are seeing a very diverse group of homebuyers and sellers, predominantly Millennial first-time homebuyers and trade-up/downsizing buyers (who are primarily selling their homes and not renting them out); investors are selling off properties they purchased after the market crash and seeing healthy profits.
Distress inventory, defined as short sales or foreclosures, remains at historic lows, with 1.5% of all closed listings fitting into this category. We are seeing buyers take a financially conservative approach, evidenced by the fact that many are purchasing below the maximum they can quality for.
The number of home options in Chandler, especially in the $350,000 and under mark, remains severely limited. Chandler remains a hyper seller’s market with multiple offers frequently showing up in the lower price ranges. We are also seeing very strong/healthy activity in the $350-500k category, as well as homes priced slightly over the half million mark.
Prices are expected to continue to rise even as the summer buying season comes to a close. Demand will continue to remain healthy through the rest of the year, as Realtor.com projects Phoenix to be the hottest market in the U.S in 2017. A recent azcentral article noted valley housing expert Tom Ruff stating that we are on track to have our best “normal” real estate year in history, excluding the “boom” and “bust” years of 2005 and 2011.
New construction homes, which tend to sell at a 20-30% premium compared to resale homes, continue to be in strong demand. A record number of buyers are currently the in process of building, with an average wait time of 7 – 9 months for a brand new home.
Although a seller’s market (multiple offers situations are not uncommon), buyers continue to negotiate closing cost concessions, as well as repairs during the inspection period, with offers near or at list price. Builder incentives (money towards closing costs or upgrades) are granted when their preferred lender is utilized.