March Chandler home sales were up slightly from numbers last year. The Chandler housing market saw 484 homes change hands (vs. 454) with an average of 38 days on the market (down from 42) and a median sales price of $290,000 (up from $260,000). Noteworthy is the $17,000 jump in median sales price after just one month, a 6.2% increase. In February the median sales price for a Chandler home was $273,000. The average home closed at $155/square foot vs. $145 in 2016. Homes currently under contract are going pending after a mere 23 days on the market.
There are currently 681 homes on the market, which equals the number of homes under contract to be purchased – 685. The number of homes choices, especially in the $350k and below range, remains fairly limited. Chandler remains a strong seller’s market with less than a 1 1/2 month supply of homes on the market. We are also seeing strong activity in the $350-500k category, as well as homes priced slightly over the half million mark.
Prices are expected to continue to rise during the spring and summer months, despite talk about interest rate increases this year. Demand will continue to remain strong throughout the course of the year, as Realtor.com projects Phoenix to be the hottest market in the U.S.
New construction homes, which tend to sell at a 20-30% premium compared to resale homes, continue to be in high demand as well. A record number of buyers are currently the in process of building a brand new home, with an average wait time of 6 – 9 months.
Although a seller’s market, buyers continue to negotiate closing cost assistance with reasonable offers on resale homes and builder incentives when their preferred lender is utilized.
Interest rates are at historic lows, but are already beginning to rise and are projected to end 2017 above 5%, which would start to slow the buying pace in Chandler AZ.