Like the rest of the Southeast Phoenix Valley, August 2008 brought continued price declines for the single-family real estate market. However, those lower prices also spurred a slight increase in sales and a decrease in inventory - most likely due to sellers with unrealistic expectations who decided to take their property off the market. The end result is a Chandler real estate market with less than six months of inventory and an average selling price of $257,543 (a 41% drop from the average selling price a year prior).
Pricing trends for single-family homes in Chandler, Arizona. Click to enlarge. See the raw data here.
Similar to Tempe and Gilbert, selling prices took a dive from July 2008 to August 2008. With an influx of foreclosures, bank-owned properties and other distressed properties, prices will most likely continue to drop.
In the graph above:
- the blue line indicates the average price of single-family homes currently listed in Gilbert.
- the green line indicates the list price for single-family homes before being sold. In other words, this is the average price for all listings that went under contract before the final sales price was agreed upon by the buyer and seller through contract negotiations.
- the yellow line indicates what the average sales price was for single-family homes in Gilbert.
Average Days On Market in Chandler, Arizona. Click to enlarge.
Months of Inventory in Chandler, Arizona
As a reminder:
- Less than six months of inventory indicates a “seller’s market.” In a seller’s market there are more buyers than there are homes to purchase. As a result, real estate prices may increase during a seller’s market because there is less inventory than there are buyers. This is what happened during the 2004 - 2006 real estate boom in Phoenix.
- More than six months of inventory indicates a “buyer’s market.”In a buyer’s market, real estate will often sell below the listing price because there are more buyers than inventory. Much of the country has experienced an extreme buyer’s market over the past year or two.
- Six months of inventory indicates a “balanced market.” This is the most desirable market for buyers and sellers alike. Homes will typically sell near listing price because there is a balanced amount of inventory when compared to buyers. Sellers who market their property correctly and at the current market price will often receive an offer near that list price. Buyers are more confident in purchasing because prices are stable or appreciating.
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