Chandler Arizona home sales increasing
The year 2015 saw the first upswing in the number of single family homes sold in Chandler since 2011. Back in 2011, Chandler saw a total of 4,710 single family homes sold, and that number continued to decrease each year, reaching a 6 year low of 3,674 homes sold in 2014. The total number of Chandler homes sold in 2015 totaled 4,028, which was 354 more than in 2014, and a good sign heading into 2016.
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Although 2015 started out with the lowest number of home sales in January (211) over the last four years, it didn't take long to see things pick up. By March the cummulative home sales for 2015 were already ahead of 2014 numbers. Then in June, Chandler home sales reached a 4-year high of 453. The numbers did see a normal seasonal decline from July through November, but then in December, the number of homes sold in Chandler (341) surpassed the December totals in each of the last 3 years.
There are a number of reasons why home sales in Chandler saw an increase in 2015. First of all, the economy has been improving over the last three years, and the housing market has also rebounded significantly since the housing bubble burst during 2006 through 2008.
Chandler home sales increased from 2,959 in 2008 to 4,710 in 2011, but this was mainly due to so many people getting foreclosed on, or having to short sell their home, caused by the housing downturn and financial hardship. Home values were half of what they were just a few years before, which brought investors back into the market. The number of Chandler home sales during this time were inflated due to the housing market collapse after the bubble, and the number of distressed home sellers.
Over the next three years (2012-2014), foreclosures and short sales started dropping off, and home values began to increase. Fewer people were forced to sell their home due to a loss of job, bankruptcy, or being upside down on their mortgage. This led to a decline in the number of Chandler home sales, as the market was trying to normalize, and there were fewer so-called "deals" to be had. In addition, mortgage lending tightened it's requirements making it much more difficult for consumers to qualify for a home loan. Chandler sales decreased from 4,710 in 2011 to 3,674 in 2014.
It has now been 8-10 years since the housing bubble burst, and the Chandler housing market was about as "normal" or "stable" as it could be in 2015. Like I said previously, there are very few foreclosures, short sales, or bank owned homes for sale in Chandler these days. Chandler home values have increased in many areas to almost as high as they were during the housing boom. Because of the improvement in the economy, as well as real estate values, new home builders are back in the market. After several years of no new construction, builders like Fulton Homes, Lennar, Pulte, Meritage Homes, Ryland Homes, Maracay Homes, Taylor Morrison, KB Home, and Standard Pacific Homes all have new community developments under construction.
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Another reason for the increase in Chandler home sales is that, along with new home construction, new businesses have continued to build, or move to the area. Chandler is known as the "Silicon Desert" and has always been an attraction for high-tech businesses such as Intel. Continuum is a 153 acre master planned science and technology park that has been under development over the last several years. Other recent business additions in Chandler have been Innovations Technology, PayPay, Safelite Group, as well as many retailers and new restaurants.
One of the main reasons why home sales are increasing in Chandler is due to the fact that boomerang buyers are back, and millennials are entering the housing market. Boomerang buyers are former homeowners who have gone through a short sale, foreclosure, or bankruptcy in the past, and are now able to qualify for a home mortgage again. Arizona has one of the highest number of emerging boomerang buyers in the country. Millenials are roughly defined as individuals between the ages of 18-34, of which there are over 80 million. They are now reaching the point where they have a strong desire to own a home, and are making plans to ensure that happens sooner than later. Rising rent prices, as well as rising interest rates, is also placing home buying on the front burner for many.
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Chandler did not suffer as bad as other parts of Arizona, and the nation, when the housing market burst. Even so, home prices did decline, and many home owners lost their homes between 2006 and 2008. Investors took advantage of significantly low home prices between the years of 2008 and 2011, and home sales in Chandler actually increased during that time. Between 2012 and 2014, Chandler home sales dropped, as fewer home owners were forced to sell, lending tightened, and the market began to stabilize. New construction, boomerang buyers, and millennials, all contributed to an increase in Chandler home sales in 2015, as well as higher rent rates, and an increase in mortgage interest rates.
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