GSN Real Estate 112022

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REAL ESTATE

GILBERT SUN NEWS | NOVEMBER 20, 2022

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Gilbert enters buyers market territory – for now BY MINDY JONES GSN Columnist

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ig news this week as the Valley shifts into a buyers market after almost exactly three months in a balanced one following an extreme inventory shortage that elevated home prices to their peak in May. Buyers have reaped the benefits of this rapidly shifting market with nearly 45% of all recent sales involving concessions for mortgage rate buy downs, closing costs, and other seller-paid contributions. But sellers are grappling with the reality that home prices have fallen almost 10% in that same time period and the impact of not being market-ready has risen to two to three times the opportunity cost that it carried in the 2021 market. While downward pressure on pricing will continue to exist as long as demand is anemic, the housing market is behaving normally with only minimal inventory changes week over week as the new listing count slows to a modest trickle. Annual appreciation is still more than 30% for homeowners who have been in their home for at least two years and

BESTOF

2022

BESTOF

2021

This 5,350-square-foot house on E. Sanoque Court, Gilbert, recently sold for $2.1 million. Built in 2006, the seven-bedroom, five-bath house underwent a complete interior and exterior renovation and sports a family room with fireplace, high-end gourmet kitchen, a new casita and even a full-swing golf simulator. (Special to GSN) their purchase price has almost doubled if they’ve been in their home for the last five, making the short-term loss more impactful for pandemic buyers, sellers and investors looking to turn their inventory quickly. New construction has returned to the Valley as a viable solution for buyers after two years of inaccessible inventory and inflexible pricing. That is peaking the interest of many who are finding resale inventory to be outdated and priced similarly.

Gilbert finds itself in an interesting housing market. Restaurants are packed and growth abundant. The inventory and demand numbers continue to reflect the hesitation and fear that consumers feel over inflation and interest rates as well as some uncertainty and speculation about housing prices that are expected to rebound once interest rates fall. While still historically low, the coupling of the increase in interest rates with the rapid escalation of home prices in a short period of time has caused some to ques-

tion the value of their purchase and challenged the affordability of their purchase in the current market. While short-term memory would say that selling prior to the peak of pricing would have been a better solution, the higher sales price would have come with less usable proceeds if purchasing in Gilbert. The average sale-to-list price ratio was 104%, which meant that much of a seller’s bottom line went to the opportunity cost of buying the house and not the down payment, closing costs, or even the principal loan amount. The active listing count is now just slightly higher than it was last quarter while both pending and under-contract listings having risen over the last month, bringing the Gilbert housing market to a similar position as we were in in 2015 but with nearly double the average price point. With rental prices higher in Gilbert this month than they were in August – and 75% higher than in 2015 – the case for home ownership is still strong. Appreciation is on the rise and supply has remained flat as demand has waned. So while Gilbert is firmly seated in a buyers market, a housing shortage is on

Our extensive, high quality marketing of your home combined with our thorough preparation of listing the home for sale, will help your home sell faster and for more money. Here is a sample of the marketing for our listings: ◆ Home Staging Report by Interior Designer & Stager ◆ Professional video of home ◆ Professional photos of home ◆ Twilight photos ◆ Community photos ◆ Aerial drone video/photos ◆ 3D Interactive floor plan - Matterport www.fosteringre.com Each office is independently owned and operated ◆ Open house first weekend on the market

480.221.3034

see MINDY page RE3


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