Gilbert Arizona Market Update 10/31/2008

Solutions Real Estate market update GILBERT

Current prices for homes on the market Trends in pricing Current levels of supply and demand Value metrics

Report for the week of 2008-10-31

Presented by David Dion 480-282-2665 Solutions Real Estate www.SolutionsRealEstate.com - dave@solutionsrealestate.com

Powered by Altos Research LLC Copyright 2005-2008. All Rights Reserved www.altosresearch.com

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

City Overview

GILBERT Trend

Real-Time Market Profile

THIS WEEK The median single family home

Median List Price $ 270,000 Average List Price $ 348,437 Least Expensive Listing $ 87,000 Most Expensive Listing $ 2,995,000 Asking Price per Square Foot $ 123 Average Days on Market 124 Total Inventory 2033 Absorbed This Week* 383 Percent of Properties with Price Decrease 51 % Percent Relisted (reset DOM) 9% Percent Flip (price increased) 4% Median House Size (sq ft) 2,288 Median Lot Size 1.0 - 2.5 acres Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.5 Median Age 9 Altos Research Value Statistics Market Action Index Cold! Buyer's 18

price in GILBERT this week is $270,000. The 2033 homes have been on the market for an average of 124 days.

The Market Action Index has been climbing lately while days-onmarket are trending down, these point to a positive near-term outlook for the market.

Altos Research calculates the Market Action Index which measures available supply relative to the current level of demand. Index value above 30 indicates conditions favor the seller. See the section below for full details.

QUARTILES

Trend Key Last Month's Trend

Last Quarter's

To get a tightly targeted

No Clear Monthly/Quarterly

*Metric "Absorbed this Week" covers properties sold and those taken off the market for other reasons.

Since sales sometimes take months to close, it is impossible to discern in real-time exactly which properties sold.

understanding of homes in the market, we break each locale into quartiles. Each quartile is 25% of the

Characteristics per Quartile homes listed.

Med. Sqft. Med. Lot Size

Bed

Bath

Med. Age

Inven.

Not Avail

5.0

3.5

8

508

148

131 161 Most expensive 25% of homes

2,587

Not Avail

4.0

2.5

8

508

133

121 124 Upper-middle 25% of homes

$ 235,000

2,036

Not Avail

4.0

2.5

9

508

95

86 112 Lower-middle 25% of homes

$ 177,100

1,572

Not Avail

3.0

2.0

10

509

74

55 103 Least expensive 25% of homes

Quart

Median Price

1

$ 550,000

3,631

2

$ 325,000

3 4

AbNew sorbed

Avg. DoM

We'll refer to the quartiles in the trend graphs below.

Solutions Real Estate Market Update for GILBERT

2

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE Despite this week’s down tic, the market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this shift.

QUARTILE PRICES Often, we find insights by watching pricing trends within the quartile segments.

Price weakness is evident almost across the board. Quartiles 2, 3, and 4 have been in price decline in recent weeks, with Quartile 1 remaining basically flat. Look to the Market Action Index as a leading indicator of the bottom of the market.

Solutions Real Estate Market Update for GILBERT

3

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE AND VALUE While prices have been basically flat, the price per square foot has been heading downward. While not a sign of broad strength in a market, larger homes are coming more available and buyers are tending to get more home for their money.

INVENTORY Inventory has been relatively steady around these levels in recent weeks.

Solutions Real Estate Market Update for GILBERT

4

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Market zone for a long period, prices are likely in for a downward correction.

MARKET ACTION INDEX The GILBERT market is currently quite strongly in the Buyer's Market zone (below 30). The 90-day Market Action Index stands at 18.

With several months of inventory available at the current sales rate, buyers should find ample choice.

Home sales have been exceeding new inventory for several weeks.

Since this is a Buyer’s market prices The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

are not yet moving higher as excess

An MAI value greater than 30 typically indicates a “Seller's Market” (a.k.a. "Hot Market") because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a "Buyer's Market" (a.k.a. "Cold Market") where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.

the as supply and demand trends

inventory is consumed. However, continue, the market moves into the Seller’s zone, and we are likely to see upward pressure on pricing.

MARKET ACTION Not surprisingly given the overall Market Action Index, all quartiles are in the Buyer’s Market zone with several months of inventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall market shifts. Often one end of the market (e.g. the low end) will improve and signal a strengthening The quartiles can help you answer the question, "How hot is the market for homes in my price range?"

Solutions Real Estate Market Update for GILBERT

market before the whole group changes.

5

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET (DOM) The properties have been on the market for an average of 124 days.

Half of the listings have come newly on the market in the past 91 or so days.

DOM PER QUARTILE It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85298 Trend

Median List Price $ 349,945 Average List Price $ 432,278 Least Expensive Listing $ 166,000 Most Expensive Listing $ 2,995,000 Asking Price per Square Foot $ 133 Average Days on Market 106 Total Inventory 328 Absorbed This Week 273 Median House Size (sq ft) 2,672 Median Lot Size 1.0 - 2.5 acres Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.8 Median Age 4 Altos Research Value Statistics Market Action Index Cool. Buyer's 20

THIS WEEK The median single family home price in GILBERT 85298 this week is $349,945.

Demand measured by the Market Action Index is increasing and dayson-market is trending downward.

Even as more properties come available, these are positive trends for the market.

PRICE Prices in this zip code have been on a downward trend recently and this week, while essentially flat, doesn’t break us out of that cycle.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see the market’s price weakness evident across the board. All four quartiles have been in price decline in recent weeks. Look to the Market Action Index as a leading indicator of the bottom of the market.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

3,802

Not Avail

4.0

3.5

4

82

82

74

120 Most expensive 25% of homes

$ 399,450

2,808

Not Avail

4.0

3.0

4

82

82

73

112 Upper-middle 25% of homes

3

$ 299,450

2,529

Not Avail

4.0

2.5

4

82

82

69

90 Lower-middle 25% of homes

4

$ 219,950

1,969

Not Avail

4.0

2.0

4

82

82

65

101 Least expensive 25% of homes

Quart

Median Price

1

$ 650,000

2

AbNew sorbed

Avg. DoM

PRICE AND VALUE The market’s downward trends are shared across both price and value.

People are recently placing less value on homes (you can see the recent declines in price per square foot as evidence.) Look for significant changes in the Market Action Index as a precursor to price and value changes, possibly as inflection points for good investment opportunities.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 328 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85298 market is currently in the 'Buyer's Market' zone (below 30), though not strongly so. The 90-day Market Action Index stands this week at 20 so buyers should expect find reasonable levels of selection.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 105 days.

Half of the listings have come newly on the market in the past 91 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85297 Trend

Median List Price $ 289,900 Average List Price $ 411,242 Least Expensive Listing $ 142,900 Most Expensive Listing $ 2,695,000 Asking Price per Square Foot $ 118 Average Days on Market 128 Total Inventory 351 Absorbed This Week 22 Median House Size (sq ft) 2,629 Median Lot Size 2.5 - 5.0 acres Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.5 Median Age 5 Altos Research Value Statistics Market Action Index Cold! Buyer's 17

THIS WEEK The median single family home price in GILBERT 85297 this week is $289,900.

The Market Action Index has been trending down recently, but as days-on-market decreases also, there aren't strong signals for the direction of the market.

PRICE We continue to see prices in this zip code bouncing around this plateau. Look for a persistent upshift in the Market Action Index before we see prices move from these levels.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see prices in this zip code have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

4,070

Not Avail

5.0

3.5

5

87

3

4

209 Most expensive 25% of homes

$ 358,445

3,062

Not Avail

4.0

3.0

5

88

13

5

123 Upper-middle 25% of homes

3

$ 250,000

2,162

Not Avail

4.0

2.5

5

88

6

6

87 Lower-middle 25% of homes

4

$ 189,900

1,770

Not Avail

4.0

2.0

6

88

9

7

95 Least expensive 25% of homes

Quart

Median Price

1

$ 750,000

2

AbNew sorbed

Avg. DoM

PRICE AND VALUE While prices have been basically flat, the price per square foot has been heading downward. While not a sign of broad strength in a market, larger homes are coming more available and buyers are tending to get more home for their money.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 351 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85297 is quite strongly in the Buyer's Market zone. The 90day Market Action Index stands at 17. With several months of inventory available at the current sales rate, buyers should find ample choice.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 128 days.

Half of the listings have come newly on the market in the past 84 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85296 Trend

Median List Price $ 235,000 Average List Price $ 293,511 Least Expensive Listing $ 125,000 Most Expensive Listing $ 1,200,000 Asking Price per Square Foot $ 118 Average Days on Market 145 Total Inventory 385 Absorbed This Week 43 Median House Size (sq ft) 2,123 Median Lot Size 0.50 - 1.0 acre Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.5 Median Age 10 Altos Research Value Statistics Market Action Index Cold! Buyer's 17

THIS WEEK The median single family home price in GILBERT 85296 this week is $235,000.

Inventory has been tightening and days-on-market increasing recently. The Market Action Index has been basically flat, not providing strong indication for market conditions.

PRICE Again this week in this zip code we see a downward notch for prices.

Pricing has been weak in recent weeks and versus their absolutehigh level. At this point, we will be looking for a persistent upward shift in the Market Action Index as a leading indicator for a trough in prices.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see price for this zip code in general with price stagnation in recent weeks. Quartile 4 is down, while the rest of the market is basically flat.

Look to the Market Action Index to determine if this plateau is the stage for a prolonged price decline.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

3,654

Not Avail

5.0

3.0

10

96

4

5

$ 273,285

2,262

Not Avail

4.0

2.5

10

96

7

21

154 Upper-middle 25% of homes

3

$ 210,000

1,800

Not Avail

3.0

2.5

10

96

8

10

137 Lower-middle 25% of homes

4

$ 169,900

1,521

Not Avail

3.0

2.0

10

97

17

7

Quart

Median Price

1

$ 450,000

2

AbNew sorbed

Avg. DoM

184 Most expensive 25% of homes

106 Least expensive 25% of homes

PRICE AND VALUE The market’s downward trends are shared across both price and value.

People are recently placing less value on homes (you can see the recent declines in price per square foot as evidence.) Look for significant changes in the Market Action Index as a precursor to price and value changes, possibly as inflection points for good investment opportunities.

Solutions Real Estate Market Update for GILBERT

16

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 385 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85296 is quite strongly in the Buyer's Market zone. The 90day Market Action Index stands at 17. With several months of inventory available at the current sales rate, buyers should find ample choice.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

17

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 145 days.

Half of the listings have come newly on the market in the past 112 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85295 Trend

Median List Price $ 249,900 Average List Price $ 302,656 Least Expensive Listing $ 138,790 Most Expensive Listing $ 760,000 Asking Price per Square Foot $ 117 Average Days on Market 89 Total Inventory 272 Absorbed This Week 0 Median House Size (sq ft) 2,321 Median Lot Size 1.0 - 2.5 acres Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.5 Median Age 6 Altos Research Value Statistics Market Action Index Cold! Buyer's 18

THIS WEEK The median single family home price in GILBERT 85295 this week is $249,900.

Inventory is up and Market Action is trending down recently. While days-on-market appears to be trending lower, the overall conditions are weakening a bit.

PRICE Prices in this zip code have been on a downward trend recently and this week, while essentially flat, doesn’t break us out of that cycle.

Solutions Real Estate Market Update for GILBERT

19

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see the market’s price weakness evident across the board. All four quartiles have been in price decline in recent weeks. Look to the Market Action Index as a leading indicator of the bottom of the market.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

3,254

Not Avail

5.0

3.0

7

68

2

0

111 Most expensive 25% of homes

$ 300,000

2,548

Not Avail

4.0

2.5

6

68

1

0

101 Upper-middle 25% of homes

3

$ 222,950

2,166

Not Avail

3.0

2.5

6

68

4

0

77 Lower-middle 25% of homes

4

$ 175,450

1,580

Not Avail

3.0

2.0

6

68

4

0

70 Least expensive 25% of homes

Quart

Median Price

1

$ 467,000

2

AbNew sorbed

Avg. DoM

PRICE AND VALUE The market’s downward trends are shared across both price and value.

People are recently placing less value on homes (you can see the recent declines in price per square foot as evidence.) Look for significant changes in the Market Action Index as a precursor to price and value changes, possibly as inflection points for good investment opportunities.

Solutions Real Estate Market Update for GILBERT

20

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 272 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85295 is quite strongly in the Buyer's Market zone. The 90day Market Action Index stands at 18. With several months of inventory available at the current sales rate, buyers should find ample choice.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

21

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 89 days.

Half of the listings have come newly on the market in the past 63 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

22

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85234 Trend

Median List Price $ 267,900 Average List Price $ 345,969 Least Expensive Listing $ 87,000 Most Expensive Listing $ 1,425,000 Asking Price per Square Foot $ 127 Average Days on Market 132 Total Inventory 431 Absorbed This Week 32 Median House Size (sq ft) 2,232 Median Lot Size 1.0 - 2.5 acres Median Number of Bedrooms 4.0 Median Number of Bathrooms 2.5 Median Age 14 Altos Research Value Statistics Market Action Index Cold! Buyer's 16

THIS WEEK The median single family home price in GILBERT 85234 this week is $267,900.

Inventory and days-on-market are climbing, while the Market Action Index has been flat recently. The trends point to a weakening market.

PRICE We continue to see prices in this zip code hovering around these current levels, even though they bumped up a bit this week. Look for a persistent up-shift in the Market Action Index before we see prices move significantly from here.

Solutions Real Estate Market Update for GILBERT

23

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see the market’s price weakness evident across the board. Quartiles 2, 3, and 4 have been in price decline in recent weeks, with Quartile 1 remaining basically flat.

Look to the Market Action Index as a leading indicator of the bottom of the market.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

3,532

Not Avail

5.0

3.0

14

107

7

7

177 Most expensive 25% of homes

$ 317,000

2,497

Not Avail

4.0

2.9

13

108

7

4

132 Upper-middle 25% of homes

3

$ 219,950

1,833

Not Avail

3.0

2.0

14

108

7

13

123 Lower-middle 25% of homes

4

$ 164,950

1,470

Not Avail

3.0

2.0

17

108

10

8

Quart

Median Price

1

$ 629,000

2

AbNew sorbed

Avg. DoM

98 Least expensive 25% of homes

PRICE AND VALUE The market plateau is seen across the price and value. The price per square foot and median list price have both been reasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves from these levels.

Solutions Real Estate Market Update for GILBERT

24

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 431 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85234 is quite strongly in the Buyer's Market zone. The 90day Market Action Index stands at 16. With several months of inventory available at the current sales rate, buyers should find ample choice.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

25

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 132 days.

Half of the listings have come newly on the market in the past 98 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

Solutions Real Estate Market Update for GILBERT

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David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

GILBERT

Neighborhood Detail Real-Time Market Profile

85233 Trend

Median List Price $ 239,950 Average List Price $ 292,489 Least Expensive Listing $ 100,000 Most Expensive Listing $ 1,600,000 Asking Price per Square Foot $ 128 Average Days on Market 129 Total Inventory 266 Absorbed This Week 13 Median House Size (sq ft) 2,041 Median Lot Size 1.0 - 2.5 acres Median Number of Bedrooms 3.9 Median Number of Bathrooms 2.0 Median Age 14 Altos Research Value Statistics Market Action Index Cold! Buyer's 17

THIS WEEK The median single family home price in GILBERT 85233 this week is $239,950.

Inventory has been decreasing lately but the Market Action Index is falling also. With days-on-market climbing, these are relatively negative implications for the market.

PRICE Again this week in this zip code we see a downward notch for prices.

Pricing has been weak in recent weeks and versus their absolutehigh level. At this point, we will be looking for a persistent upward shift in the Market Action Index as a leading indicator for a trough in prices.

Solutions Real Estate Market Update for GILBERT

27

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

PRICE PER QUARTILE In the quartile market segments, we see prices in the individual quartiles without strong directional correlation lately. Quartiles 2 and 4 have been in price decline in recent weeks, with Quartiles 1 and 3 remaining basically flat. Look to the Market Action Index as a leading indicator of the bottom of the market.

Characteristics per Quartile QUARTILES Med. Sqft Med. Lot Size

Bed

Bath

Med. Age

Inven.

2,854

Not Avail

4.0

2.6

13

66

3

0

144 Most expensive 25% of homes

$ 279,450

2,156

Not Avail

4.0

2.5

13

66

2

5

121 Upper-middle 25% of homes

3

$ 222,500

1,793

Not Avail

3.0

2.0

14

67

2

2

123 Lower-middle 25% of homes

4

$ 165,000

1,500

Not Avail

3.0

2.0

18

67

6

6

129 Least expensive 25% of homes

Quart

Median Price

1

$ 425,000

2

AbNew sorbed

Avg. DoM

PRICE AND VALUE The market’s downward trends are shared across both price and value.

People are recently placing less value on homes (you can see the recent declines in price per square foot as evidence.) Look for significant changes in the Market Action Index as a precursor to price and value changes, possibly as inflection points for good investment opportunities.

Solutions Real Estate Market Update for GILBERT

28

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

INVENTORY Inventory has been climbing lately with 266 properties available this week. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index to gauge whether buyer interest is keeping up with available supply.

MARKET ACTION INDEX The GILBERT 85233 is quite strongly in the Buyer's Market zone. The 90day Market Action Index stands at 17. With several months of inventory available at the current sales rate, buyers should find ample choice.

MARKET ACTION Not surprisingly, all quartiles are in the Buyer’s Market zone with several months of inventory given the current levels of demand.

Watch the quartiles for changes before the overall market shifts.

Solutions Real Estate Market Update for GILBERT

29

David Dion | Solutions Real Estate | 480-332-5942 | www.SolutionsRealEstate.com

DAYS ON MARKET The properties have been on the market for an average of 129 days.

Half of the listings have come newly on the market in the past 98 or so days. Watch the 90-day DOM trend for signals of a changing market.

DAYS ON MARKET It is not uncommon for the higher priced homes in an area (Quartiles 1 and 2) to take longer to sell than those in the lower quartiles.

About Altos Research Corporation Altos Research Corp. reports real-time analysis of the residential real estate market in local markets across the country. All information contained herein is based on properties currently listed for sale and available publicly. When evaluating a particular property, make sure you use comparable sales data in addition to the market trend information available in this report. The data presented in this report is accurate to the best of our knowledge, but cannot be guaranteed as such. Use this report as one input in the real estate decision making process, but do not rely on it for accuracy. Nothing in this report or any other Altos Research publication is a recommendation to buy or to sell real estate. We recommend you work with a licensed real estate agent or broker.

Altos Research LLC Copyright 2005-2008. All Rights Reserved

www.altosresearch.com

Solutions Real Estate Market Update for GILBERT

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