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REAL ESTATE
GILBERT SUN NEWS | DECEMBER 18, 2022
Rapid changes leaving window for homebuyers BY MINDY JONES GSN Columnist
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he anticipation in the air is palpable when it comes to the real estate market but not for the reasons you might think. With nearly 12% fewer available homes than just a month ago, the active listing count has dipped down closer to 18,000 and the Valley has returned to a balanced market. Sitting in a buyers market for less than 30 days has left many industry professionals questioning if we’ll have enough houses for those wanting to move in and
around the Valley in the new year. The decrease in available homes has been met with nearly the same number of pending contracts as we saw last month, representing a slight increase in demand as posted interest rates fell and new listings nearly halted. Days inventory has dropped, builders are slowing production and institutional buyers, who are doing more selling than buying these days, have their lowest market share since July 2020. This recent shift has created a noticeable increase in showings and offers on inventory previously accumulating days on market. Consumers are having a hard time delineating between the size of the market
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Melanie Nemetz
Two homes connected: A main house and a Guest house
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and the opportunity that the market brings – and for good reason. Coming off of two years of explosive growth in the industry which translated into a 30% increase in housing prices, consumers associate the pace of the market with the size of the opportunity, two metrics which don’t always align. The million-dollar question as we prepare for the ball to drop is which number will pick up speed faster in the new year – the number of buyers or the number of sellers. Despite continued concerns over low demand and extreme interest rate sensitivity, the benefits of the current market have rapidly crystalized over the last few weeks. Low inventory has insulated pricing increases that we could not have sustained. Low demand has provided entrance points for buyers who have been pushed out of the market. Low competition has allowed for the resolution of challenges around interest rates with seller contributions. And a slower pace has given greater time for strategic decision making for both buyers and sellers making what we know is a massive life decision. The key challenges that we see in the current market impact some but not all consumers - investors who bought
homes in 2022 and are looking to turn them for a profit may be challenged by the timing of the market and having leveraged hard money loans feel limited in their options to rent until values return to their 2022 purchase price. Families in transition that are dependent on a fast sale in order to move forward with a purchase may have to adjust their price expectations to move forward and if given the option, may not have chosen to sell in a buyer’s or even balanced market. Even rental prices have returned to their 2021 prices – which, while significantly higher than the year prior, are down for 2022 meaning that expectations of short-term rapid escalation have been crushed for investors who were relying on immediate cash flow. For the majority of the marketplace, however, the current market conditions represent significant opportunity for both buyers and sellers. Gilbert has made significant gains on the road back to balance with nearly a month’s less supply than we had going into November. Sales per month have increased, the dollar-per- square foot looks very similar to that December 2021, and the dollar
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:
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◆ 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
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see MARKET page RE2
MARKET from page re1 volume of sales has increased after falling dramatically over the last year and there are no signs that these new trends will reverse in the coming year. While some wait for proof that it’s okay to buy and sell in a market with such a different pace than we’ve gotten used to over the last two years, others are finding the current market to be more accessible than it has been and anticipate they’ll be thankful they signed their closing papers before 2023, when many are anticipating the battle between increased demand and decreased availability will bring the return of price appreciation and compe-
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REAL ESTATE
GILBERT SUN NEWS | DECEMBER 18, 2022
tition. There are benefits to every real estate market but the sense of urgency has definitely returned as we close out 2022 in a much different place than many anticipated as we rang in the new year just a year ago. Mindy Jones, a Gilbert Realtor and owner of the Amy Jones Group brokered by EXP Realty, can be reached at 480-2503857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com.
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Two homes connected: A main house and a Guest house Main house offers 3 bedrooms and 2 baths with an open floor plan
Welcome to the NEXTGEN home in San Tan Heights. The NEXTGEN suite has its own front door & its own door to the backyard. The kitchenette includes a full size fridge, a dishwasher, & a microwave & lots of cabinetry. Relax in the spacious family room. The bedroom is private with a door to the bedroom and includes a walk in closet. The main house includes 3 bedrooms, all with walk in closets, & 2 bathrooms. You’ll enjoy cooking in this kitchen which includes maple cabinets & granite counters. Low maintenance front & backyards with desert landscaping. Come see this home that offers so many possibilities with the NEXTGEN suite. Use it as an office, for inlaws, or simply additional living space. Community pool, hiking close by - WOW!! at San Tan Mountain Regional Park.
HAVE REAL ESTATE NEWS? Contact Paul Maryniak at 480-898-5647 or pmaryniak@timeslocalmediacom
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Great opportunity for a NEXTGEN home in Queen Creek Call today (480) 221-3034
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