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Gilbert Real Estate Market Report April 2020

Before we get into the Gilbert Real Estate Market Report in April 2020, I have a commentary written by Tina Tamboer.  Tina is the Senior Housing Analyst with the Cromford report. She was nice enough to let us use her summary of the Greater Phoenix Metro area as a backdrop for what is happening in April 2020. Here is her commentary…..

The Greater Phoenix Metro Summary Analysis Real Estate Market Report April 2020

 

Pandemic Puts Housing in a “Pinch”
COVID-19 Aftermath: Good News for Normal Buyers

For Buyers:

The kickoff of 2020 was developing into a nightmare for normal buyers who just wanted to find a place to live. Extreme competition for homes between wholesalers, cash buyers, vacation rental investors, and traditional buyers depleted supply and created an environment consisting of multiple offers, appraisal waivers and an increasing number of sales over asking price. The Greater Phoenix housing market was on the precipice of seeing price appreciation accelerate at an alarming rate and had analysts wondering what could possibly slow it down. Well, they have their answer; an act of nature.

Impact of COVID-19

The COVID-19 pandemic came in like a wrecking ball in March shutting down tourism and crashing the stock market single-handedly over the course of a few weeks. Hedge funds and iBuyers (funded by Wall Street) bowed out of purchases and vacation rental buyers put their plans on hold. This is providing much-needed relief to normal homebuyers, if only they could leave their house.

Stay-at-home orders to stem the impact of the pandemic has “pinched the hose” on what is arguably one of the hottest housing markets in the country. This is causing a build-up of pent up demand that will undoubtedly return with some gusto when travel restrictions are lifted and a level of stability returns.

Don’t expect prices in Greater Phoenix to drop like they did in 2008, however. Back then when investors pulled out of the market, prices were so high that families making the median income could only afford 27% of what was selling. This time around as investors once again pull out of the marketplace, families making the median income can afford 68% of what’s selling with today’s incomes and interest rates. This is well within normal range and puts regular homebuyers in a better position to pick up the pieces left by Wall Street and vacation rental investors.

For Sellers:

Lockdowns and travel restrictions across the country are causing buyers who need to relocate to Arizona, either for a job or to retire, to put those plans on hold for now. The effects of COVID-19 span the job market, stock market, corporate profits, and exchange rates. This has had the highest impact on high-end luxury market buyers. Not only are these buyers restricted from leaving their home cities at the moment, they have instability in their portfolios as well. Under these circumstances it should not come as a surprise to see that weekly contract activity over $500K has slowed down by 64% since their peak on February 24th while price points under $500K have only seen a 30-40% slow down.

Impact of COVID-19

Sale prices are not declining at the moment, but seller expectations are adjusting. Upticks in weekly price reductions tell us that sellers are beginning to ease up on pushing market value. Sellers are also beginning to realize that it will take longer to sell their homes under these conditions. Weeks ago, some listings were receiving multiple offers within a matter of hours, but that’s not a reasonable expectation now. Active listings that would’ve flown off the market 4 weeks ago could be on the market for weeks, maybe even months at this rate. Information, communication, and strategy will be important during the course of the pandemic response. It’s situations like these where professional Realtors get to show the value of their experience and service.

Commentary was written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2020 Cromford Associates LLC and Tamboer Consulting LLC

 

Below you will find the statistical breakdown and more for the Gilbert area Real Estate Market Report March 2020.

View All Current & Past Phoenix & East Valley Real Estate Market Reports

Below is a snapshot of Gilbert’s Real Estate Market Statistics for March 2020

Gilbert Real Estate Market Report April 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What are the Average Temperatures in the Phoenix Metro area?

Month Low High
Jan 43.4°F 65.0°F
Feb 47.0°F 69.4°F
Mar 51.1°F 74.3°F
Apr 57.5°F 83.0°F
May 66.3°F 91.9°F
Jun 75.2°F 102.0°F
Jul 81.4°F 104.2°F
Aug 80.4°F 102.4°F
Sept 74.5°F 97.4°F
Oct 62.9°F 86.4°F
Nov 50.0°F 73.3°F
Dec 43.5°F 65.0°F

Phoenix’s coldest month is January when the average temperature overnight is 43.4°F. In July, the warmest month, the average day time temperature rises to 104.2°F.

If you would like to see specific homes as they come on the market, click here to get email updates.

A look at Gilbert’s current Sales Price. Real Estate Market Report

In March, Gilbert’s Median Sales Price was $377,250 as compared to last months $373,650. We will see how the Virus effects sales price going forward. Based on Tina’s comments they are holding so far.

 

If you are in the process of Buying or Selling a Home, Click on the highlighted link to see a number of interesting articles.

What does this mean if you are a Seller or a Buyer?

 

Real Estate Market Report

As the chart above shows, Inventory in Gilbert is at .94 months up from last month’s .68. With all the Coronavirus restrictions, both buyer and sellers are greatly impacted (see Tina’s comments above). At this point the only thing we know for sure is the whole market is slowing.

 

If you would like to see specific homes as they come on the market, click here to get email updates.

What is the annual rainfall in Phoenix?

 

Average Rainfall for Phoenix

Average Rainfall for Phoenix, Arizona

Month Precipitation
Jan 0.83in.
Feb 0.77in.
Mar 1.07in.
Apr 0.25in.
May 0.16in.
Jun 0.09in.
Jul 0.99in.
Aug 0.94in.
Sept 0.75in.
Oct 0.79in.
Nov 0.73in.
Dec 0.92in.

The driest month in Phoenix is June with 0.09 inches of precipitation, and with 1.07 inches March is the wettest month.

 

Homes For Sale in Gilbert AZ

Below are Homes that have come on the market in the last 7 Days around the Median price range. Also below the pictures, you will see a Chart of all the Gilbert homes by price and Type:

Below are all the homes available in the city of Gilbert by Dollar amount and type:

Under $100,000Between $100,000-$200,000Between $200,000-$300,000Between $300,000-$400,000Between $400,000-$500,000
Between $500,000-$600,000Between $600,000-$700,000Between $700,000-$800,000Between $800,000-$900,000Between $900,000-$1,000,000
Over $1,000,000In Adult CommunitiesForeclosed HomesShort SalesWith Pools

Below you will see the links for the other cities in the East Valley:

Chandler

Phoenix

Tempe

 

View All Current & Past Phoenix & East Valley Real Estate Market Reports

 

Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living

Mountain Park Ranch Real Estate

Call or Text: 602-770-0643 for more Real Estate Information.

Summary
Gilbert Real Estate Market Report April 2020
Article Name
Gilbert Real Estate Market Report April 2020
Description
Real Estate Market Report Shows the trends in Gilbert AZ. Info is from the Multiple Listing Service & is useful for buyers /sellers..
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Publisher Name
Shirley Coomer Group
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