The Gilbert, Arizona real estate market continued it’s recent trends of price drops, seeing an average sales price of $266,863 - down from $274,340 from the month before.
Take a look at this graph which shows the two-year price averages in Gilbert:
Gilbert, Arizona Single-Family Home Prices Over The Past Two Years. Click to enlarge. View raw data.
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.
Overall, prices for single-family homes in Gilbert seem to be stablizing right around the $270,000 mark.
Like much of the Phoenix valley, the year-over-year price decline chart is not a pretty picture:
Gilbert Year-Over-Year Price Change. Click to enlarge.
The price of the average sold single-family home in Gilbert dropped 35% from August 2007 to August 2008. While prices appear to be stablizing around $270,000, this past year has been brutal for homeowners. Only time will tell if we are actually at the bottom of this real estate market correction.
Single-family homes are continuing to sit on the market for less time:
The average days on market for single-family homes in Gilbert, Arizona. Click to enlarge.
On average, single-family homes in Gilbert are sitting for 91 days before they are sold. This is the lowest time on market since July 2007, which saw 82 days on the market. This is a good sign for the real esate market - homeowners who price their home correctly, based on their local market conditions, will sell their home!
Finally, check out this information on the months of inventory in Gilbert:
The months of inventory in Gilbert, Arizona. Click to enlarge.
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.
August 2008 inventory levels stayed at around the six-month mark indicating, overall, Gilbert is in a balanced market. In balanced markets, prices have a better chance at staying stable as supply and demand are in check.
Are we at the proverbial bottom of this correction? It’s too early to tell. There are many outside factors that continue to affect consumer confidence including this past weekend’s sale of Merill Lynch to Bank of America and the fall of Lehman Brothers on Wall Street. Many economists are actually predicting a decline in mortgage rates as a result - which could translate into more buyers jumping into the market.
If you’re interested in purchasing a home in Gilbert, you can search our site casually or set up a fusionpower search - giving you a powerful personal and secure webpage with homes that meet your search criteria!
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