Chandler Arizona Real Estate Market Continues to Strengthen
Chandler Real Estate Market Sees Growing Buyer Demand, Lower Inventory, and Higher Sales Activity
Chandler, Arizona's real estate market continues to experience rapid improvement as buyer demand and inventory levels show signs of market recovery.
Current Chandler home inventory at levels not seen since April 2006. Meanwhile, buyer demand, as measured by the number of available properties under contract for purchase, is at a level not seen since 2005 during the market high.
The overall Chandler real estate market improvement is due primarily to increased buyer demand for homes as a result of low interest rates, depressed home prices, and the $8, 000 "first-time homebuyer" tax credit. The combination is spurring the strong interest by buyers to purchase homes.
To measure the trends developing in the Chandler housing market, there are three areas that require analysis-the number of available Chandler homes for sale or inventory, the number of Chandler homes under contract for sale, and the number of sold Chandler homes.
Available Inventory of Chandler Homes Showing Gradual Decline
Available Chandler home inventory has been experiencing a gradual decline and is now at a three year low with 1, 649 available properties. This represents a net 10% rate of decline since January. The decline in inventory is largely due to the overall improvement in buyer demand rather than due to any cancellations and expirations of property listings.
Buyer Demand for Chandler Real Estate is Strengthening Rapidly
Buyer demand for Chandler real estate, as measured by the number of actively marketed Chandler homes currently under contract for purchase, is showing notable improvement.
33% of Chandler homes currently for sale are now under contract. Contrast this with a figure of 25.6% a month ago. Overall, this represents a 18 percentage point improvement since November 2008.
Put another way, for every 10 homes on the market, there are now 3.3 buyers vs. 2.5 buyers a month ago. Comparing against prior years, Chandler's performance is surpassing that seen in any previous year or market cycle since 2001.
The increase in buyer demand is working to reduce existing inventory as more buyers are emerging to purchase Chandler homes.
Chandler Home Sales Are Improving as a Result
Because of the improvements in the "under contract" pipeline, sales are inevitably rising across the Chandler real estate market.
Chandler home sales activity is beginning to show better results in sales over 2008 trends as the number of homes under contract for purchase rises. It appears that 2008 is a low point for closed sales activity in Chandler.
Chandler Foreclosures & Short Sales
Chandler, like many Valley communities, has been beset by foreclosures and short sales which have forced prices down aggressively from market highs.
Of particular importance regarding foreclosed properties in the Phoenix area is the termination of the Fannie Mae and Freddie Mac foreclosure moratorium. On March 31st, both entities ended their moratoriums on new foreclosures and occupant evictions. As such, the next 1-3 months will be telling to understand the volume and impact of additional foreclosures on the local Chandler real estate market.
Chandler Real Estate Outlook
Overall, the Chandler real housing market is clearly experiencing impressive improvement as buyer activity climbs, inventory erodes, and sales increase.
In the next 1-3 months, we should hope to see additional erosion of available Chandler homes inventory and greater overall sales. The Pending sales curve should begin to ease in line with traditional seasonal patterns, but the relative strength of the trend should remain. It is expected that 2009 Chandler home sales should post significantly better results than that seen through 2008.
Potential foreclosure activity remains an area of concern but buyer demand is showing increased potential to absorb new inventory. The outlook for Chandler real estate continues to show promise.
David Lorti, MBA & CNE, is a professional Realtor for Thompson's Realty in Chandler, Arizona. His websites offer additional market insights on
Chandler Real Estate,
Chandler Homes, Ahwatukee Real Estate and
Gilbert Real Estate.
Article Source: ArticlesBase.com
