Gilbert Sun News Real Estate - October 2020

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 18, 2020

re1

Take stock of your housing needs as market flourishes

BY MINDY JONES NEVAREZ GSN Contributor

D

riving around Gilbert, it’s easy to see that activity is starting to pick up as we make our way into the last few months of 2020.

The campaign signs aren’t the only thing coloring the sides of the road.

We’ve got lines outside of Joe’s Farm Grill and Liberty Market again. The Gilbert Cinema’s Movies in the Park are back showing to a limited audience. A grand opening this weekend unveiled the new amenities at the Gilbert Regional Park, including a 7-acre lake, 10-acre event lawn and six sand volleyball courts.

The real estate market has been holding

things down for Gilbert while the events, group activities and much of what we did for school, work, and recreation either went away entirely or took a massive hit to normalcy.

Other sectors including real estate have seen disproportionate levels of success through the pandemic with a record number of sales, historically significant levels of appreciation and a market that continues to thrive despite the uncertainties that many face in their home and work lives.

October is typically the tail end of one of the slowest times in the annual real estate calendar but nothing follows a normal pattern in 2020 and real estate certainly is no exception.

The real estate market is defying the laws of seasonality by posting unforgetta-

ble numbers representing once-in-a-lifetime opportunities for Valley residents.

Gilbert’s market strength rose again last week as it currently sits nearly five-times the strength of an inventory-deficient market. The below-average inventory and the above-average demand have created an environment where homes are on the market for less than 30 days and in many Gilbert neighborhoods less than the time it takes for them to be made active on the MLS. We have hit an all-time low LESS THAN 200 homes available for sale; the town and active listings have crossed the threshold

Listed for $390,000

See Page 4

see HOUSING page RE3

SPO OTLIGHT home

A 5 bedroom, 3 bathroom home with a relaxing backyard oasis.

Just Listed: Beautiful home in Gilbert with poo!l

Melanie Nemetz

of $200 per square foot – meaning that we are seeing 10-15 percent appreciation increase annually.

Builders are still building less inventory than they did between 1996 and 2007 – meaning that the likelihood of them helping us catch our breath and give buyers some room to exhale is slim to none.

There is a great value proposition for new construction right now with prices rising slower than the resale market and the lack of updated inventory at some of

Amy Jones Group

Listed for $525,000!

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 Page 4

re2

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 18, 2020

Valley home prices going up, up and away

BY PAUL MARYNIAK GSN Executive Editor

T

he steadily high demand for homes is sending desperate buyers in search of new houses instead of resales – but they shouldn’t expect developers will take any offer that comes along.

So says the Cromford Report, which closely monitors the Valley’s housing market, which also reported that home sales on average over the past month in Gilbert ZIP codes 85233, 85234, 85295 and 85296 sold above the listed price.

“With low supply and high demand,” it said, “we see the unusual situation where the average selling price exceeds the average list price becoming more commonplace.”

And no relief will be found in newbuilds, it said.

“With the chronic shortage of re-sale homes, many buyers are turning to new-builds,” Cromford said last week.

“Here they will not face multiple offers, but they may well find some builders are not accepting contracts except for homes that are near completion.”

The reason won’t make buyers happy.

“Prices are climbing steeply and some developers do not want to tie themselves to a fixed price until the home is almost complete,” it said. “The builders are experiencing an extreme seller’s market and buyers (and their agents) are likely to feel a little less appreciated than usual.”

Developers are finding themselves in the catbird seat.

Homes are moving so quickly on both the resale and new-build markets that developers “can also spend less on sales and marketing,” Cromford said.

Demand has not declined for months in the Valley’s market.

Active listings across Maricopa and Pinal counties for September were down 41 percent from September 2019 by 41.1 percent, excluding homes

where the buyer’s offer was contingent on selling their own home and those that were under contract but where the seller was seeking back-up offers.

When those homes were added to active listings for September 2020, listings were down 24.4 percent from a year ago but up .9 percent from August because there were 73 more houses on the market last month, Cromford said.

More discouraging news for buyers involves price.

The median sales price for homes sold last month was $327,000 – up 17 percent from September 2019.

Yet, despite that, sales last month were up 20.5 percent over September 2019.

“It is unusual for the number of listings under contract to be higher on Oct. 1 than Sept. 1, but this is what we see in 2020,” Cromford said. “Even more startling is the amount by which the number of listings under contract exceeds the 2019 level – 34 percent. The market

@AmyJonesGroup Each office is independently owned and operated

was strong this time last year, but now it is on fire.”

“To be fair,” it added, “September had one extra working day in 2020 compared to 2019, but this does not take much away from the impressive number of closed listings.”

All of these trends prompted Cromford to warn that people who expect a rash of foreclosures in the Valley soon can expect disappointment, “There have been a number of articles written predicting that home prices will fall next year because of the damage to the economy by the COVID-19 pandemic,” it said.

“This will cause some people, those who took those articles seriously, to be very surprised by the huge increase in pricing that is currently going on.”

Cromford predicts, “The upward price trend will continue for the near

...a Tradition of Trust

see MARKET page re3

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 18, 2020

HOUSING from page re1

their most marketed price points. It’s unlikely that we’ll see folks shy away from entering into drawings for homesite lots, being afraid of non-refundable deposits or pushing back on the builder-friendly contract terms they are presented with.

Right now, getting the deal is the deal and that’s going to continue to be a hard pill for people to swallow – but potentially a very profitable one.

We need only reflect on those local residents who bought their home just one year ago who can now refinance their property and often remove their mortgage insurance because their 5 percent down payment has quickly turned into 20 percent equity thanks to sky rocketing appreciation.

We are posting more and more listings every day – outrageously high numbers for this time of year. Yet, the demand remains strong enough that we simply can’t make a dent in the inventory that we need to replace.

Sellers are asking 15-20 percent more for their homes and 35-45 percent of

homes are selling for over asking.

We don’t expect this trend to reverse any time soon.

Families are making life changing decisions to capitalize on historically low rates and jaw dropping appreciation numbers setting themselves up for the uncertain times to come.

My advice? Take it one step at a time.

If you own your home, find out how much its worth, how much you owe and what your interest rate is because refinancing might be an option for you.

If COVID has changed your working or schooling needs, take inventory of what you need in a home that you don’t have and determine if you can make those changes to the house that you have – or if you’ll need to move because your buying power has never been greater.

If you are renting, add up what you’ve spent in rent in the last year and if its less than the appreciation you would have seen in a home you purchased when you signed your lease.

Consider what it would take to become

a home owner because it’s cheaper now than it’s ever been. Think about what a change of 1 percent in interest rates would mean for your buying power, what 1 percent decrease in sales price would mean for your equity and what a 1 percent rise in rental rates would mean for you as an investor.

The only thing that’s constant is change and knowing what that change would mean for you lets you plan for the worst, expect the best, save more than you think you can, give more than you’ve ever given, and continue to be grateful for the choices you have to make.

Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480-250-3857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com

- Mindy Jones Nevarez, a Gilbert Realtor and owner of the Amy Jones Group at Keller Williams Integrity First, can be reached at 480250-3857, Mindy@AmyJonesGroup.com or AmyJonesGroup.com

Gilbert Real Estate Snapshot

MARKET from page re2

re3

and medium term, making any price reductions in 2021 rather unlikely.”

In Maricopa County, it noted, foreclosures last month plummeted by 79 percent from September 2019.

Meanwhile, the upward trend in price is so steep that it predicts year-overyear increases will soon hit 20 percent.

“The economy has severely damaged the finances of a large number of people,” it said. “However, most of those people were unlikely to be in a position to buy a home anyway. Those who are in a position to buy a home have had their determination to do so increased dramatically by the pandemic. The gap between the haves and the have-nots is widening.”

It also cited recent data suggesting “there is unlikely to be the sort of foreclosure flood that we saw in 2007 through 2012. “ “We currently have no more than a molehill, it said, adding: “The market is still showing no sign of weakness.”

Provided by the Amy Jones Group Your Local Real Estate Team (480) 250-3857 | www.amyjonesgroup.com • Average Days on Market: 31 days Down from 32 Days Last Month

• Active Listings: 189 Down from 193 Listings Last Month

• Monthly Sales: 523 Down from 533 Sales Last Month

• Listings Under Contract: 601 Down from 603 Listings Under Contract Last Month

• Average Sales Price: $458,862 Up from $444,629 Last Month

• Monthly Supply of Inventory: 0.8 Down from 0.9 Monthly Supply Last Month

re4

REAL ESTATE

GILBERT SUN NEWS | OCTOBER 18, 2020

Ready for a Better Mortgage Experience?

Local Expertise and Market Knowledge An In-Person Mortgage Experience Full Explanation of the Mortgage Process& Continued Guidance Help for Those with Past Credit Issues

146 E GAIL DR Just Listed: Beautiful home in Gilbert with pool for $390,000. Welcome to this beautiful home in the heart of Gilbert. Stylish updates in the kitchen & baths, the home is move in ready. This single level home offers a great room concept with an open kitchen, three bedrooms & two baths + pool. The oversized lot offers room to roam, citrus trees, and wide side yards. The recently updated kitchen boasts lots of cabinets and counter space, a walk in pantry and an island. Open to the family room, this kitchen is ideal for cooking or entertaining. The master bedroom offers direct access to the pool. The master bath has been completely remodeled. The walk in closet offers custom shelving and storage. All three bedrooms include walk in closets.

This is a beautiful home you will want to see.

Let’s Talk!

Christine Wenger Sales Manager | nmls. 261653 480-232-4972

christine.wenger@nationslending.com

Just Listed for $390,000 FHA ■ VA ■ Conventional ■ Jumbo ■ Purchases ■ Refinance

Melanie Nemetz

480.221.3034 • www.fosteringre.com Each office is independently owned and operated

SPO OTLIGHT home SPECTACULAR This 5 bedroom, 3 bathroom home with 3083 square feet features a relaxing backyard oasis with a sparkling pool complete with mosaic tile surface, fire and water features, travertine decking and a sun bathing shelf. The covered patio and spacious gazebo with outdoor fireplace offer extra room to entertain. Inside you are greeted by soaring ceilings and a popular floor plan including a downstairs guest suite, spacious living and dining room plus a large eat-in kitchen overlooking the family room. The gourmet kitchen offers stainless steel appliances, 42’’ cabinets with crown molding, walk-in pantry and a huge island.

Upstairs you will find a spacious master bedroom boasting an en-suite bathroom with dual vanities, an oversized walk-in closet, soaker tub and walk-in shower. 4 additional bedrooms with walk-in closets, a full bathroom and a large loft round out the upstairs of this lovely home. Other upgrades include a 3 car tandem garage, water softener, reverse osmosis, plantation shutters throughout the entire home and a sizeable laundry room plumbed and ready for a utility sink! Freeman Farms is located right across the street from the new Gilbert Regional Park and is also home to the future site of The Strand 25 acre Waterpark- set to open in the summer of 2021. Convenient to 202 Freeway, San Tan Village Shopping Center and plenty of restaurants and entertainment!

Listed for $525,000!

2728 E Ficus Way, Gilbert, AZ 85298

(480) 250-3857 www.AmyJonesGroup.com