Posted on Tuesday, 5th January 2010 by Anna Kulbinski
Single family home prices in Gilbert, Arizona dropped to an average of about $223,000 in November. This figure is even less than the average single family home prices in January, 2005, when the real estate boom began. At that time, the average was $236,285.
Gilbert was on quite a ride in 2005, with prices rocketing over 43% to an average of $338,358 by that December. From there they peaked at about $370,736 in December 2006 before beginning the decline.
A trend to watch in Gilbert suggests that perhaps prices will now begin to creep up. November sales figures showed that over 45% of the buyers were choosing to pay approximately 22% more to purchase a non-distressed home than one in pre-foreclosure or a bank owned home.
Although they did sell for an average of 22% more than distressed properties, non-distressed homes in Gilbert still sold for only about 79% of their list price.
This same pattern is being followed in the nearby city of Chandler.
This could indicate that buyers are becoming more willing to make a low offer on non-distressed homes, or that more buyers are trying to buy non-distressed homes to avoid maintenance and repair issues.
Chart Courtesy of www.cromfortreport.com
These figures should not be taken to suggest that lender owned homes and short sale properties are not selling. They are, and in fact lender-owned homes accounted for 28% of the sales in spite of being only 9% of the listed inventory.
Pre-foreclosure homes in Gilbert – otherwise known as short sales – were the segment that fared poorly in November. Short sales offerings accounted for roughly half of the listings, but only a quarter of the sales. Pricing does not appear to be the reason, as the Gilbert short sale listing prices are roughly the same as the lender-owned prices.
Gilbert enjoyed meteoric growth rate during the first half of the decade, prompting the development of planned communities. Thus a number of the homes currently for sale are of relatively new construction.
The availability of these newer homes, plus a low crime rate and exceptional schools makes Gilbert a good place to invest before prices rise.
Unless the market sees a new flood of foreclosures, average prices should slowly begin to move upward as distressed homes are purchased and removed from the market.
Tags: giblert real estate, gilbert arizona homes for sale, gilbert home prices, gilbert homes for sale, gilbert market statistics, gilbert realtor, Market Report
Posted in Gilbert Real Estate, Market Report, Market Statistics, Neighborhoods | Comments (1)
Anna K. Kulbinski
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January 10th, 2010 at 9:42 am
[...] in the nearby city of Gilbert, average single family home sale prices in Chandler, Arizona are roughly the same as they were in [...]