Real Estate Market Report for Chandler AZ
October 2018 – Real Estate Market Report for Chandler AZ
In Chandler AZ, Seller Concessions Rise on Listings Sold in the range of $200K-$250K
Price Reductions rose to 27% on Active Listings in the range of $250K-$400K
What This Means For Chandler AZ Buyers:
October is the 4th month in a row which supply has risen between $200K – $400K, which is good news for most Chandler buyers as it provides more choices and fewer competing offers. However, for Chandler buyers with budgets under $200K, this trend in supply doesn’t apply to them and their choices are still very limited. In January, inventory under $200K made up 18% of all active listings. Within this price range, single family homes made up 50%, condos and townhomes 30%, and mobile homes 20%. As of October, inventory under $200K only makes up 12% of active listings and has declined to 36% since January. Single family homes make up 45%, condos and townhomes 36%, and mobile homes 19%. This drop in supply Means 591 fewer single family homes, 198 fewer condos and townhomes, and 229 fewer mobile homes available under $200K since the beginning of 2018 in Chandler AZ.
What This Means For Sellers in Chandler AZ:
When supply rises in Chandler, sellers react in several ways to compete with one another for existing buyers. One option is a price reduction on their Chandler listing prior to contract. This does not necessarily result in a decline in sale price, only a decline in sellers’ expectations for appreciation. Chandler AZ Sales price trends should still continue to rise; however, perhaps only at 6% instead of 8%. Another option is to agree to some concessions, such as paying a portion of closing costs or a home warranty; and finally, to agree to a much lower sale price than what they were initially asking. Typically, sellers agree to the first two options before submitting to a “low price” contract, which is why sales price trends are the last to respond to a shift in supply and demand. Weekly price reductions this month in Chandler between $250K-$400K are up 27% compared to last year at this time. While price reductions between $200K-$250K are only up 1.7% in Chandler AZ. However, seller concessions on sales between $200K-$250K reached 41% so far this month compared to last quarter’s measure of 36%. Only 21% of sales between $250K-$400K recorded a seller concession towards costs. Which leads us to conclude that sellers below $250K are agreeing to more concessions than price reductions; while sellers over $250K are submitting to more price reductions. Despite this slight weakening in sellers’ advantage, The Chandler AZ Real Estate Market is not close to a balanced or buyer’s market so expect overall prices to continue rising over the next 3-6 months.
Jay Mecray – Ask Jay, Your Personal Real Estate Expert in Chandler Arizona