Phoenix / Chandler, AZ Home Price Index Numbers

JayMecray.com (480) 868-3814

Phoenix / Chandler, AZ Home Price Index Numbers

by jay mecray (480) 868-3814

Phoenix / Chandler, AZ Home Price Index Numbers

The S&P/ Case-Shiller® Home Price Index® numbers have been released for Chandler, AZ for the latest sales period (June through August) as compared to how the 20 focus cities fared as follows on a month to month basis:

  1. Las Vegas +1.15%
  2. Tampa +0.54%
  3. Detroit +0.52%
  4. Cleveland +0.52%
  5. Phoenix / Chandler, AZ +0.40%
  6. Minneapolis +0.32%
  7. Atlanta +0.30%
  8. Charlotte +0.22%
  9. Chicago +0.20%
  10. Miami +0.13%
  11. Los Angeles +0.13%
  12. Boston +0.06%
  13. Denver -0.02%
  14. Washington -0.03%
  15. New York -0.03%
  16. Dallas -0.04%
  17. Portland -0.10%
  18. San Francisco -0.29%
  19. San Diego -0.46%
  20. Seattle -1.58%

We are starting to see across the country a larger number of cities starting to show negative changes  this month; although, the national average was +0.22%. Phoenix / Chandler, AZ was almost twice the national average and is looking like an over-performer once again; although, it dropped from 3rd to 5th place (showing in the table above) since last month. Seattle shows an unusually larger than normal drop for a single month while Las Vegas is in the front of the pack.

For the year over year numbers this is what we are now  seeing:

  1. Las Vegas +13.9%
  2. San Francisco +10.6%
  3. Seattle +9.6%
  4. Denver +7.7%
  5. Tampa +7.0%
  6. Phoenix  / Chandler, AZ +7.0%
  7. Los Angeles +6.2%
  8. Minneapolis +6.0%
  9. Detroit +6.0%
  10. Atlanta +5.8%
  11. Cleveland +5.6%
  12. Boston +5.5%
  13. Portland +5.4%
  14. Charlotte +5.2%
  15. Miami +5.0%
  16. San Diego +4.8%
  17. Dallas +4.7%
  18. Chicago +2.9%
  19. New York – 2.8%
  20. Washington +2.8%

The national average was +5.8%; so, Phoenix was well ahead of the national average, however it dropped from 5th place last month to 6th place in the market today.

Jay Mecray Commentary: Case-Shiller® data is, as always a 3-month look back i.e. not the most current data available. Therefore, what we know today; however, is that there continues to be a general “softening” of the Chandler, AZ market that’s “broad-based” (less coupled with less demand). The reason prices are strong as they are is two-fold:

  1. There are still more buyers than sellers in Chandler, AZ.
    2. Chandler prices are a lagging indicator.

So, if the current trend continues as is in Chandler,  we’ll likely see more softening of home prices down the road.  This, however does not mean more or less homes for sale in Chandler, AZ.

Of course, the home buying strategy in Chandler is not a broad brush, it’s always what’s happening specifically in the Chandler market area. The Chandler, AZ market area continues to be a very good investment today and into the distant future.

What this means to buyers:  I would say that the potential for softening prices in Chandler is not a good reason to not to jump in.  Any softening of prices in Chandler, won’t compensate for rising interest rates e.g. for every 1% rates go up, buyer lose 10% buying power on an 80% loan to value. Or put another way, houses are 10% more expensive. So arbitrarily ‘waiting’ is absolutely not be the best strategy.

What this means to sellers:  It’s the flip side of the same argument, and that is that in a softening Chandler market, time is not on your side and for sure you don’t want to be in a position of chasing a softening market, particularly in a climate of rising rates.  Chandler sellers should be thinking “the time is now” if you are thinking about selling your Chandler home.

Jay Mecray – Ask Jay, Your Personal Real Estate Expert in Chandler Arizona
(480) 868-3814
JayMecray@gmail.com
JayMecray.com

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