Chandler AZ Real Estate Housing Market Report - December 2022
After increasing or remaining the same for 24 consecutive months, the average sales price per square foot of Chandler homes has now decreased for the seventh straight month. The average sales price has dropped from $315/sf in May to $272/sf in December. This is now a lower price per square foot of Chandler homes than it was a year ago in December of 2021.
The days on market has now also increased for the seventh straight month, going from an all-time low of 20 DOM in May to 70 DOM for December, more than tripling in seven months. Homes in Chandler are still selling, but they have certainly slowed down as we enter into the new year.
This is the slowest time of season for the housing market, but the home value increases from 2020 through the first half of 2022, plus the increased inventory of homes for sale and the increase in mortgage interest rates have also contributed to the slowdown in the Chandler housing market.
After increasing slightly in July, the number of new listings in Chandler has now decreased five months in a row, going from 421 in July to 133 in December. With this decrease new listings are now down -38.7% from December of last year. Demand was high and supply was low starting in 2020 and lasting through the first half of 2022, but the demand is 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 three months in a row and are down to 555 in December. Although home inventory is decreasing, this is the nineth 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 December listings by 62.8%.
The decline in the number of listings in Chandler over the last three 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, even though we saw an average price increase this month, as well as an increase in sales. Home prices have been declining since June of this year due to inflation, higher mortgage rates, and an increase of inventory, which has slowed buyer demand. Median home values in Chandler have increased an average of just 0.6% since December of 2021, but just a few months ago we were seeing increases year-over-year of 25.0% or higher.
Mortgage interest rates have been fairly stable sitting just below 6.5%, and some experts say inflation is slowing. It looks like we are approaching a more balanced housing market in Chandler that should remain as we head into the new year.
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