Home Values and Trends
Though we see a lot of peaks and valleys in 2014; prices are holding firm which is quite enigmatic. I believe this is due to the fact that many of those whom bought at the height of the market in 2008 have restructured their debt and sellers are not in an dire need to sell their home at all cost. Though November was the slowest month of 2014, it is typically the slowest month in any year. Inventory has held at about 27,000 homes for sale and prices are not dropping too much and in many cases are increasing. If you are looking for one of the better Chandler real estate agents; give me a call for a no-hassle market analysis of your home or feel free to do one on this website!
I wasn’t too surprised to hear that the prognosticators say that we are in a real estate slump; but disappointed because perception is reality. The market is just a bit slower than last year and hardly a “slump” I posted the numbers below. But such strong words can fuel a panic or sell off and this isn’t good for anyone; In short; the units sold on average in 2014 are down 6,300 per month from 7,000 per month in 2013 (469 of the 700 could be due to new home sales) So our numbers are down 300 homes. So we have a 10% decline in units sold but the average sales price is up 10% from $232,000 in 2013 up to $252,000 2014; inventory is only up 5,000 units on average. Days on market is up by 10 days and there doesn’t seem to be a downward spiral.
I think we aren’t having a banner year since many of the investors have gone to Nevada but this “slump” is really just a slower year with a summer slowdown. Once they have driven up the prices in Vegas, they will be back (usually 20% of our market is investor driven) and we will transition from a “normal market” to a great market again. I think sales and inventory are down because sellers are pricing their homes unrealistically high and when they don’t sell, we haven’t seen price reductions but they simply take their homes off the market.
I hope the news media doesn’t create a panic and a sell off because then we might really go into a slump! I also believe that a good portion of this 700 unit monthly drop in sales could be due in part to new home sales; so let’s not allow a dire picture to get out to the rest of the community or we might end up with a self fulfilling prophecy on our hands!
As prices as still on the rise or at least holding steady it is a good time to sell, especially if you have a home for sale in Chandler. If you are looking to buy there is still a lot of upside in the market and this minor correction won’t last long; so if you purchase before the end of the year you I believe you will see considerable appreciation during 2015. Below are the market numbers month by month since 2013 and below this chart are two maps. The first map will show every home for sale in Phoenix and the second map will show all of the recent sales. If you need any assistance feel free to contact me my consultations are free and I never turn an inquisitive call into a sales call. That has been my policy for over a decade and one of the reasons I have prospered so well in my real estate career. I am a Chandler Realtor and do a special report on Chandler homes for sale each month. Also click here to read the monthly housing report for each city.