Before we get into the Gilbert Real Estate Market Report for March 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
44% of Sales Closed Over Asking Price
New Listing Counts Lowest in Over 20 Years
Gilbert Real Estate Market Report March 2021
? For Buyers:
With 44% of sales through the Arizona Regional MLS have closed over the asking price in the last 30 days. The median amount over the asking price for all price ranges combined is $10,000 with a range between $1 to $310,000. (I know what you’re thinking, “$1 over? What is this, ‘The Price is Right’?” In some cases, yes).
Because 56% of all homes still sell for at or below list price, if you have a budget between $250K-$400K, the percentage selling over the list is highest at 52% with the median amount over asking at $10,000. However, even if your budget is over $400K, a significant percentage is closing over the asking price. Up to $800K, 42% have sold over the list with a median escalation of $12,000-$15,000. From $800K-$1M, 30% sold over list with a median escalation of $17,000-$20,000. From $1M-$2.5M, 20% sold over list with a median escalation of $30,000-$50,000. Over $2.5M, only 2 sold over the asking price with a median escalation of $150,000.
Over the past 6 weeks, REALTORS® have added an average of 2,059 new listings per week to the Arizona Regional MLS. During the same time period, an average of 2,312 contracts were accepted per week. This is what has caused the overall supply of homes to consistently drop and competition between buyers to escalate. While just over 2,000 new listings per week may seem like a lot, it’s actually the lowest rate for this time of year in at least 20 years. A normal level would be considered around 2,500 new listings.
? For Sellers:
While supply is still 77% below normal for this time of year and demand is 17% above normal, demand has been dropping faster than supply over the last 30 days. It’s not noticeable when one is in the midst of a contract negotiation today because sellers rarely notice when they’re getting, for example, only 15 offers instead of 25.
But consider last December demand was 35% above normal; at this rate, demand could be at a normal level in a couple of months and below normal by June. This will not cause prices to decline because there are still a minuscule number of competing listings in the MLS. But, it could mean that the second half of 2021 could look different from the first. Especially if there’s a temporary boost in new listings after the forbearance period ends and the foreclosure moratorium is lifted.
More Sellers Information
The average mortgage rate rose to 3.02% this month according to Freddie Mac. Even though this is still considered an excellent rate, it understandably weakens the purchasing power for some buyers and reduces the affordability measure for Greater Phoenix overall. When a family making the median income can afford less than 60% of what’s selling, demand is typically expected to suffer. However, buyers with median incomes coming from Los Angeles and San Francisco are used to only affording 9-11% of what’s selling in their hometowns. So Greater Phoenix prices look amazing by comparison. In fact, for some the idea of being able to own a home at all is amazing.
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 February 2021.
View All Current & Past Phoenix & East Valley Real Estate Market Reports
? Below is a snapshot of Gilbert’s Real Estate Market Statistics for February 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. Real Estate Market Report for March 2021
In February, Gilbert’s Median Sales Price had a large increase to $444,000 up from last months $405,000. The prior two months were $420,000 and $414,000 respectively. With inventory levels at this extremely low level of .33 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?
Real Estate Market Report
As the chart above shows, inventory in Gilbert is still at an unheard level of .33 months of inventory which was up from the last months .29. 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?
| 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
Gilbert Real Estate Market Report March 2021Below 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
Gilbert Real Estate Market Report March 2021
