Chandler home sales volume is on par with last year’s numbers – 513 homes changed hands both this May and last year’s identical month. Homes sold after 35 days on the market, compared to 44 days in 2016.
The median sales price for May was $297,000, an impressive 8% increase from $275,000 at this time last year. The average home closed at $157/square foot vs. $147 in 2016. Homes priced at market are selling in less than 3 weeks (20 days). Chandler’s prices continue to rise above traditional FHA loan limits, which means there will be a shift towards more conventional financing.
The current pending home sales price is $300,000 and under contract at $161 per square foot.
There are currently 717 resale homes on the market, which is less than a 1 1/2 month supply. The number of homes choices, especially in the $350k and below range, remains severely limited. Chandler remains a hyper seller’s market with multiple offers showing up in the lower price ranges. We are also seeing very 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 summer months, despite talk about interest rate increases this year. Demand will continue to remain healthy 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, with an average wait time of 6 – 9 months.
Although a seller’s market, buyers continue to negotiate closing cost assistance with offers close to list price on resale homes, and builder incentives when their preferred lender is utilized.
Interest rates remain at historic lows, and may rise close to 5% by the end of the year. Rates currently stand in the low to mid-4’s.