SUPPLY AND DEMAND
The
supply of homes in Chandler-Gilbert from 150k to 300k is now 1.9 months of inventory, which you can see on the right side of the chart below. That means if no more homes came on the market, all homes that are presently on the market would sell out in 1.9 months. (A 'normal' market is around 5 months of inventory.) This is up from the summer months, when inventory was below one month in this price range. So, inventories are rising, but are still below normal. Now the question is, are prices rising? (please see the next chart)
Let's look at the
demand for homes in the 150k to 300k price range by looking at price per square foot. You can see on the chart below that prices have been going sideways since mid-September, after a long period of rising. So what do we have? We have inventories increasing, but still low. And we have prices moving sideways after a long period of rising as buyers are shying away from homes prices over $125 per square foot.
So, in this environment, both buyers and sellers in this price range should find a good market in which to do business through the first quarter of 2014.
