Home Supply Continues to Rise in Chandler AZ
Home Supply Continues to Rise in Chandler AZ for the Middle Sector Price Range, While
Seller Price Reductions are up in Chandler AZ 46% and 61% in these Price Ranges
For Chandler Buyers:
Overall home supply in Chandler AZ is down 10% in comparison to last September. At first glance this is nothing new; however, for those of you who pay close attention to the Chandler market, you have no doubt noticed that last May supply was down almost 16%, June supply was down just over 12%, July was down 11.1% and August was down 10% from the previous year. What this means for Chandler buyers in the mid price range is the Chandler AZ market is still in short supply, but it’s subtly increasing in inventory. Most significantly, supply continues to increase between $200K-$450K. Last month I reported an 8% increase in listing activity between $200K-$300K for Chandler AZ since May, that is now up to nearly 10%. Between $250K-$350K, supply has risen 15% in just eight short weeks. Between $300K-$400K, supply has risen 10% since January of this year. All other Chandler AZ price ranges are either declining in supply or following their normal trends. This is great news for Chandler buyers in the mid price range (more choice in the marketplace means less negotiating pressure) However, don’t expect sale prices to plummet anytime soon. The first price to respond to a supply shift in Chandler typically isn’t a sale price, it’s a listing price in the form of a sale price reduction.
For Chandler Sellers:
Despite the increase in supply between $200K-$250K, there hasn’t been an increase in weekly listing price reductions from sellers yet; however, that isn’t the case for the market between $250K-$300K where weekly list price reductions have risen to nearly 47% in the past 8 weeks and weekly reductions in list prices between $300K-$400K have risen nearly 62% since January. This is not to say this is an indicator that sellers are becoming desperate. On the contrary, there are very few desperate sellers in the Chandler AZ marketplace at this time. There are, however, many optimistic sellers who may be taming their expectations in Chandler. Average annual Chandler price appreciation per square foot remains between 3.5% – 5.0% for sales between $200K-$400K, so it’s still a seller’s market in Chandler despite recent developments that would indicate otherwise. Expect prices to continue increasing in Chandler AZ at least through the remainder of 2018.
Jay Mecray – Ask Jay, Your Personal Real Estate Expert in Chandler Arizona