The median sales price for a home in Chandler AZ for November remained unchanged, coming in at $305,000 this year. Home sales volume was down by more than 10% over last November. The average price per square foot price was $174, however, up from $160 last year. Average days on market was slightly less coming in at 35 vs. 38.
Homes that closed are selling for more than 98% of asking price, indicating little to no negotiating room when sellers price the home at-market.
Current active listing inventory is 635 homes, with 365 under contract at a median sales price of $319,000 and an average days on market of a VERY short 19 days. The median Active list price at $372,000 with a square foot price of $174 indicates that many homes still on the market are much larger in size. With a 1.9 month supply of homes in the city, we remain very much in a seller’s market, however we are inching towards a balanced market with seasonality and higher interest rates starting to come into play. The large gap in asking price vs. what homes are under contract for shows that homes in the higher price ranges are not only taking longer to sell, but they are also making up a large portion of what is now on the market.
With the number of home sales down over the last few months compared to last year, we should continue to see a lower volume of home sales through our holiday season, which expected to continue into 2019. That being said, homes under the $350,000 mark are moving quickly. Buyers looking above this range are far fewer in quantity and much more discerning/particular about scouring their options before writing an offer.
With very few exceptions, appraisals are coming in to support sales prices.
Historically-attractive interest rates, healthy employment levels, and low delinquency/foreclosure rates indicate that our market is strong, although rates are expected to continue to climb in 2019, thus softening the buying pace. Prices should climb only moderately next year, not pacing the levels we saw in ’17 and ’18.
Closing cost assistance and home repairs are still being negotiated from sellers. Outside of distress sales, “as-is” sales really don’t exist at this time.
The distress factor, which consists of short sales and foreclosures, fell 60% from 2.5% to less than 1% of sales . Currently 1.2% of Active listings fall into this category, and a mere 1.7% of all homes under contract (includes homes that can take months for bank approval, and “stack up” in the pipeline as a result).
MARKET COMMENTARY: There is strong evidence showing that we are seeing a slowing market and higher rates than we have seen in the preceding 2 years.