Chandler AZ Real Estate Housing Market Report - February 2023
After decreasing or remaining the same for 8 consecutive months, the average sales price per square foot of Chandler homes increased in February. The average sales price increased from $272/sf last month to $278/sf in February. This price is lower than the price per square foot of Chandler homes in February of 2022, by $13/sf.
After decreasing last month, the days on market has increased this month, going from 67 DOM in January to 75 DOM for February. Homes in Chandler are still selling, but they have certainly slowed down over the last 9 months.
This is the time of season where the housing market starts to pick up as spring is right around the corner.
After increasing last month, the number of new listings in Chandler decreased in February, going from 218 in January to 191 this month. With this decrease, new listings are now down -35.3% from February of last year. This is the lowest number of new listings in February since before 2018.
Demand was high, and supply was low starting in 2020 and lasting through the first half of 2022, but the demand has been slowing down due to higher home prices and interest rates, and therefore fewer homeowners are putting their homes on the market. The days of listing your home and getting multiple offers thousands of dollars over list price are over.
After increasing for eight straight months, more than doubling from 313 in January to 771 in September, active listings in Chandler have now decreased 5 months in a row and are down to 447 in February. Although home inventory is decreasing, this is the 11th month in a row that active listings have been higher than the same month last year. Even with this latest decrease, active listings in Chandler are still greater than last year's February listings by 40.1%.
The decline in the number of listings in Chandler over the last 5 months is another sign that the housing market is slowing, as demand has slowed, and fewer homeowners are putting their homes on the market.
Demand is slowing in Chandler. Home prices have been trending lower since June of last year due to inflation and higher mortgage rates, which has slowed buyer demand. Median home values in Chandler have decreased an average of -8.8% since February of 2022. This is the second decrease in a row after seeing nothing but increasing home prices from January 2019 through December 2022.
Mortgage interest rates have risen to just below 7.0%, although some experts say inflation is slowing. It looks like we are approaching a more balanced housing market in Chandler that should remain that way as we head into the spring.
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