Chandler AZ Real Estate Housing Market Report - January 2023
After decreasing for 7 consecutive months, the average sales price per square foot of Chandler homes remained exactly the same in January as it was in December. The average sales price remained at $272/sf. This price is lower than the price per square foot of Chandler homes last year, in January of 2022, by $6/sf.
After increasing for 7 straight months, the days on market has now decreased to begin 2023, going from 69 DOM in December to 66 DOM for January. Homes in Chandler are still selling, but they have certainly slowed down over the last 8 months, and as we begin 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 decreasing the last 5 months, the number of new listings in Chandler increased in January, going from 136 in December to 218 in January. With this increase new listings are now down -24.3% from January of last year. Even with this increase, this is the lowest number of new listings in January 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 4 months in a row and are down to 522 to start off the new year in January. Although home inventory is decreasing, this is the 10th 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 January listings by 66.8%.
The decline in the number of listings in Chandler over the last 4 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 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 decreased an average of -1.9% since January of 2022. This is the first decrease in year-over-year home values in 4 years, since January of 2019.
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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