The Gilbert, Arizona single-family real estate market saw some positive signs in September 2008. While prices dropped, they were not as drastic as other southeast valley markets like Tempe or Chandler. In fact, from August 2008 to September 2008, single-family real estate on average sold at $267,437 and $262,842, respectively.
In the graph above:
- the blue line indicates the average price of single-family homes currently listed in Gilbert.
- the green line indicates the list price for single-family homes before being sold. In other words, this is the average price for all listings that went under contract before the final sales price was agreed upon by the buyer and seller through contract negotiations.
- the yellow line indicates what the average sales price was for single-family homes in Gilbert.
Unlike other cities in the southeast valley, Gilbert’s selling prices are not declining at such drastic and unpredictable rates.
Year-Over-Year average selling price changes look like this:
Bouncing back from a 35% drop in August to a 25% drop in September, prices are still considerably less than they were a year ago. However, the decrease in this year-over-year change may indicate that prices are starting to stabilize - especially if we see a similar change in October 2008.
Inventory levels and the average days on market (ADOM) continue to move in the right direction in Gilbert. The ADOM in Gilbert now sits at the lowest it’s been in 26 months - 74 days. This is fantastic news for the overall Gilbert market!
The other good news is the inventory level in Gilbert:
As a reminder:
- Less than six months of inventory indicates a “seller’s market.” In a seller’s market there are more buyers than there are homes to purchase. As a result, real estate prices may increase during a seller’s market because there is less inventory than there are buyers. This is what happened during the 2004 - 2006 real estate boom in Phoenix.
- More than six months of inventory indicates a “buyer’s market.”In a buyer’s market, real estate will often sell below the listing price because there are more buyers than inventory. Much of the country has experienced an extreme buyer’s market over the past year or two.
- Six months of inventory indicates a “balanced market.” This is the most desirable market for buyers and sellers alike. Homes will typically sell near listing price because there is a balanced amount of inventory when compared to buyers. Sellers who market their property correctly and at the current market price will often receive an offer near that list price. Buyers are more confident in purchasing because prices are stable or appreciating.
Gilbert continues to show stable inventory levels right at around six months.
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