Before we get into the Gilbert Real Estate Market Report for December 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 Gilbert this month. Here is her commentary…..
?️ The Greater Phoenix Metro Summary Analysis Real Estate Market Report
Supply Down 48%, Contracts Up 35%
CARES Act and Eviction Moratorium Due to Expire December 31st
? For Buyers:
Existing protections in place for homeowners during times of financial hardship have come to the forefront in 2020. While both renters and homeowners alike were struck with unemployment and loss of income this year, homeowners in particular were provided with more immediate relief and a pathway to recovery than their renting counterparts.
Case in point, there are few experts in the field predicting a foreclosure crisis for homeowners; however there are many housing experts concerned about an eviction crisis for renters after the eviction moratorium ends December 31st. Under normal circumstances in Arizona a homeowner typically has to miss multiple monthly payments before the lender files a Notice of Trustee Sale, which then provides another 90 days for the homeowner to remediate the situation prior to foreclosure. However, a renter can be at risk of eviction within a few shorts weeks after missing a single rent payment depending on their landlord’s disposition and rental agreement.
The CARES Act
The CARES Act extended another layer of protection for homeowners through forbearance, allowing them to postpone their payments in 3 month increments for up to a year without an effect on their credit. Many lenders have already put in place refinance options after forbearance for homeowners who have accumulated thousands of dollars in unpaid mortgage payments. There is no such plan for renters after the eviction moratorium. Their rents will be due in full and if they haven’t received rental assistance or sufficient unemployment benefits to cover the amount owed, they will be facing eviction and their credit will be affected.
So for those questioning whether or not purchasing a home is a good financial decision, the answer is yes. The value of owning a home is not just in its market value, but in stabilizing monthly housing costs during a period of rising rents and the comfort of more protection during times of financial and job insecurity. Losing one’s home, whether rented or owned, is one of the most stressful things a human being can endure.
? For Sellers:
If you are one of the many homeowners facing the end of a forbearance period sometime in the next 3-4 months, you have at least 5 options to remediate your situation. 1) STAY IN YOUR HOME and consult your retirement plan administrator about tapping into your retirement account without penalty until December 31st to cover your unpaid payments; 2) STAY IN YOUR HOME and consult a lender about refinancing your unpaid payments into a new loan; 3) MOVE OUT and rent your home for more than your mortgage payment to cover missed payments or replenish your retirement account; 4) MOVE OUT and consult a lender about acquiring a new loan on a more affordable home; 5) MOVE OUT and sell your home for more than your mortgage balance, walk away with your equity and credit intact to purchase another day.
2008 Housing Crash
None of these options were viable solutions for homeowners facing the 2008 housing crash 12 years ago. These options are why there is little risk of a foreclosure crisis and price crash in 2021. Because population growth has consistently outpaced housing growth every year over the past 10 years, rents and values are projected to continue rising through 2021 in Greater Phoenix unless builders are able and willing to ramp up production at ludicrous speed. They are doing their best, but even 25,549 permits issued and 19,889 sales closed on brand new single family homes through October this year hasn’t proven to be enough to satisfy the level of demand for housing that has descended on Greater Phoenix. Sellers need not worry about their home values declining anytime soon.
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 area Real Estate Market Report Month YR.
? Below is a snapshot of Gilbert’s Real Estate Market Statistics for November 2020
?️ What are the Average Temperatures in Phoenix?
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 for December 2020
In November, Gilbert’s Median Sales Price continue to rise. This month we are at $414,000 as compared to last months $405,000 and the prior months $399,950. Additionally, with inventory levels at this extremely low level of .30 months, there are many more multiple offer situations which is continuing to put pressure on the price.
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?
Real Estate Market Report
As the chart above shows, inventory in Gilbert is at an unheard of .30 months which was down from the last two months .36. 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.
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?
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: