Before we get into the Gilbert Real Estate Market Report for April 2021, 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 Gilbert this month. Here is her commentary…..
?️ The Greater Phoenix Metro Summary Analysis Real Estate Market Report
One Year After Start of Pandemic – Luxury has Exploded
Homes Selling for 101% of List Price on Average
? For Buyers:
With 54% of all sales closed over asking price so far in April, the average sale price per square foot is now higher than the list price for every price range up to $1M.
In a balanced market, homes typically sell within 97% of list price; that percentage is now 101%. This means that, for the past month or so, the majority of list prices have been the starting price for where negotiations begin instead of a top price to work down from. In past extreme seller markets, $5,000 over asking was typically enough to win a contract; that was true last year as well when the market took off. However, last January the median over ask was $6,000; by February it was 10,000; in March it was $11,000; and so far in April it’s $15,000. The highest was $905,000 over list price closed in March (It was an auction for a 10-acre property in Cave Creek that sold for $2,255,000).
By price range, over 62% of homes listed between $250K-$400K closed over asking price; the percentage is 54% for sales between $400K-$600K; 47% between $600K-$900K; 30% between $900K-$2.5M; 9.5% over $2.5M. Putting an offer in over asking price may cause a buyer some anxiety, especially a first-time home buyer. The median sale price is now $360K. Since January, the sales price per square foot for a home between $300K-$400K has appreciated 6%. That’s approximately 2% per month and the current sale price to list price ratio within the price range is 102.4%. If this rate of appreciation continues in the short term, a buyer who paid 4% over asking price on a $360K home ($14,400 over) would recoup their investment through appreciation in approximately 2 months.
? For Sellers:
The luxury market has been exploding since last summer and continues to be at the strongest level ever seen in Greater Phoenix. The number of listings under contract over $1M is up 156% over last year; but the number under contract between $2M-$3M is up 296% and over $3M is up 212%. In a typical market, sales prices in this range would be landing around 93% of list price. However in the 2021 market, the sales price ratio is averaging 98% of list.
The luxury market is also keeping up with the rest of the market in terms of marketing time. Prior to contract, half of the contracts accepted valley wide in the last week were on the market 6 days or less. Over $1M, the median was 12 days prior to contract. Over $2M, the median is 67 days. The market over $1M is outperforming in terms of annual appreciation in sales price per square foot. The median price for a 4,000-5,000 square foot home is running at $1.1M with an appreciation rate of 31%. The median price for a 5,000-10,000 square foot home is $2.3M with an appreciation rate of 35%. For perspective, the median price of a 1,500-2,000 square foot home is $365K with an appreciation rate of 25%.
Commentary 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 2021.
View All Current & Past Phoenix & East Valley Real Estate Market Reports
? Below is a snapshot of Gilbert’s Real Estate Market Statistics for March 2021
?️ What are the Average Temperatures in Phoenix?
| 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. Gilbert Real Estate Market Report for April 2021
In March, Gilbert’s Median Sales Price had a large increase to $466,000 from last months $444,000 and the prior months $405,000. With inventory levels at this extremely low level of .20 months, there are many more multiple offer situations which are continuing to put pressure on the price.
If you are in the process of Buying or Selling a Home, Click on the highlighted link to see a number of interesting articles.
Interested in buying an existing home in Gilbert? See below for all Houses for sale in Gilbert, Arizona by Zip Code.
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❓ What does this mean if you are a Buyer or a Seller?
Gilbert Real Estate Market Report April 2021
As the chart above shows, inventory in Gilbert is still at an unheard level of .20 months of inventory which was down from last months .33. Also, with inventories continuing to run at these historic lows, Buyers should make their offer with as few contingencies as possible. Also, if you find a house you like, be ready to put your offer in ASAP. In addition, know the Market Value of the home because you may need to go over the list price to get it.
Sellers should be prepared for multiple bids on their homes. Also, we are seeing this low inventory creating a bidding war where buyers end up bidding above the sales price. Additionally, make sure you and your agent have determined what the projected market value for your home is. Because you will likely get bids above the asking price as well as above your projected market value. However, you must closely review to determine if there will be a potential appraisal issue. Look for offers with appraisal waivers /contingencies.
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?
| 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:
? Below you will see the links for the other cities in the East Valley:
View All Current & Past Phoenix & East Valley Real Estate Market Reports
Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living
Call or Text: 602-770-0643 for more Real Estate Information.
