Gilbert and East Valley Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

March 8, 2023

Here’s what builders think of the housing market. Hint: It’s good news!

 

Will 2023 mark the end of this turbulent real estate market?

New home builders seem to think so. After 12 straight month-over-month declines in builder confidence, the trend seems to be reversing course, according to the latest reading of the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The HMI recorded its second consecutive month of builder confidence gains with a score of 72 for February, the strongest reading since September 2022.

Builder confidence is an important real estate market predictor because it reflects the sentiment and expectations of professionals directly involved in the home construction industry. Builders are on the front lines of the housing market and have direct insight into factors such as land availability, material costs, and labor availability, which are critical to their business.

Builders are feeling positive about new home sales and the potential for a more normal and healthy housing market. This contrasts with last year, which saw a surge in demand for existing homes due to the pandemic and supply chain disruptions that affected the new home construction market.

Cautiously Optimistic

Builders are cautiously optimistic about the future as they continue to face challenges such as rising materials costs and shortages of labor and land. However, the positive sentiment among builders is a good sign for the overall health of the housing market and could potentially lead to an increase in new home construction in the coming months.

New vs. Existing Homes

In rising-rate environments, homeowners are disincentivized to sell, exacerbating the housing shortage. New construction homes are attempting to fill the gap created by the lack of available inventory in the existing home space. Price adjustments and builder incentives are helping to drive this trend.

Overall, builder confidence is an important real estate market predictor because it provides valuable insight into the health of the housing market from the perspective of industry professionals who are intimately familiar with the industry's challenges and opportunities.

Interested in a new build? I work hand-and-hand with many of the local builders and new home communities and can guild and help you find your next dream home. 

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Mesa Homes, New Construction
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Feb. 28, 2023

Here's what's happening in Gilbert, AZ real estate for the last week of Feb 2023

Interesting way to end the month in Gilbert. Statistics are from the beginning of the month to the month's end and are specific to Gilbert. 

The median list price has increased by $34,900.00 since the beginning of the month. 

The median price of new listings increased by $1,010.00 since the beginning of the month.

The price per square is up $2.00 since the beginning of the month.

The average days on the market have declined by 4, and the median has decreased by 14.

The inventory of homes has also declined by 45 homes. 

Questions about your city? Let me know, and I will be happy to provide you with the recent data.

 

Posted in Brad's Market Updates, Buyers, Buying a Home, Gilbert Homes, Real Estate News, Sellers, Selling Your Home
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Dec. 28, 2022

Here's what's happening in Gilbert, AZ real estate for the last week of December 2022

Gilbert, AZ

Wed Dec 28, 2022

This week the median list price for Gilbert, AZ, is $575,000, with the market action index hovering around 39. This is an increase over last month's market action index of 38. Inventory has decreased to 546.

The market remains in relative stasis in terms of sales to inventory. Prices have not been moving higher for several weeks. However, inventory is sufficiently low to keep us in the Seller’s Market zone, so watch changes in the MAI. If the market heats up persistently, prices will likely resume an upward climb.

 

 

 

 

 

 

 

 

 

 

 

 

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Mesa Homes, Sellers, Selling Your Home
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Nov. 17, 2022

Here's what's happening in Mesa, AZ real estate for the week of Nov 17th, 2022

Mesa, AZ

Thu Nov 17 2022
This week the median list price for Mesa, AZ, is $489,999, with the market action index hovering around 39. This is less than last month's market action index of 40. Inventory has increased to 1,187.

 

 

Questions on the market or curious about the value of your home? Feel free to message Brad or call direct at (602) 679-1025

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Mesa Homes, Real Estate News, Sellers, Selling Your Home
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Nov. 11, 2022

Happy Veterans Day!

                The History of Veterans Day

World War I – known at the time as “The Great War” - officially ended when the Treaty of Versailles was signed on June 28, 1919, in the Palace of Versailles outside the town of Versailles, France. However, fighting ceased seven months earlier when an armistice or temporary cessation of hostilities, between the Allied nations and Germany went into effect on the eleventh hour of the eleventh day of the eleventh month. For that reason, November 11, 1918, is generally regarded as the end of “the war to end all wars.”

In November 1919, President Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words: "To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…"

The idea of the celebration was for a day observed with parades and public meetings and a brief suspension of business beginning at 11:00 a.m.

An Act (52 Stat. 351; 5 U. S. Code, Sec. 87a) approved May 13, 1938, made the 11th of November in each year a legal holiday—a day to be dedicated to the cause of world peace and to be after that celebrated and known as "Armistice Day." Armistice Day was primarily a day set aside to honor veterans of World War I, but in 1954, after World War II had required the greatest mobilization of soldiers, sailors, Marines, and airmen in the Nation’s history; after American forces had fought aggression in Korea, the 83rd Congress, at the urging of the veterans' service organizations, amended the Act of 1938 by striking out the word "Armistice" and inserting in its place the word "Veterans." With the approval of this legislation (Public Law 380) on June 1, 1954, November 11th became a day to honor American veterans of all wars.

Later that same year, on October 8th, President Dwight D. Eisenhower issued the first "Veterans Day Proclamation," which stated: "To ensure proper and widespread observance of this anniversary, all veterans, all veterans' organizations, and the entire citizenry will wish to join hands in the common purpose. Toward this end, I am designating the Administrator of Veterans Affairs as Chairman of a Veterans Day National Committee, which shall include such other persons as the Chairman may select, and which will coordinate at the national level necessary planning for the observance. I am also requesting the heads of all departments and agencies of the Executive branch of the Government to assist the National Committee in every way possible."

On that same day, President Eisenhower sent a letter to the Honorable Harvey V. Higley, Administrator of Veterans Affairs (VA), designating him as Chairman of the Veterans Day National Committee.

In 1958, the White House advised VA's General Counsel that the 1954 designation of the VA Administrator as Chairman of the Veterans Day National Committee applied to all subsequent VA Administrators. Since March 1989, when VA was elevated to a cabinet-level department, the Secretary of Veterans Affairs has served as the committee's chairman.

Veterans Day continues to be observed on November 11. The restoration of the observance of Veterans Day to November 11 not only preserves the historical significance of the date but helps focus attention on the important purpose of Veterans Day: A celebration to honor America's veterans for their patriotism, love of country, and willingness to serve and sacrifice for the common good.

 
 
Posted in Buyers, Buying a Home, Chandler Homes, Community News, Gilbert Homes, Loans, Mesa Homes, Real Estate News, Rent To Own Homes, Sellers
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Nov. 2, 2022

Here's what's happening in Mesa, AZ, real estate for the 1st Week of Nov, 2022

Mesa, AZ

Wed Nov 02 2022
This week the median list price for Mesa, AZ, is $497,000, with the market action index hovering around 40. This is less than last month's market action index of 41. Inventory has increased to 1,199.

 

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Selling your home before the holidays? Don't miss my article here! 

 

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Mesa Homes, Real Estate News, Selling Your Home
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Oct. 27, 2022

Here's what's happening in Mesa, AZ real estate for this week Oct 27th 2022

Mesa, AZ

Thu Oct 27 2022
This week the median list price for Mesa, AZ, is $498,600, with the market action index hovering around 40. This is less than last month's market action index of 42. Inventory has increased to 1,191.

Market Action Index

This answers “How’s the Market?” by comparing sales rate versus inventory.

The market has been cooling over time, and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

Lending Note

The market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this trend.

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Loans, Mesa Homes, Real Estate News, Sellers, Selling Your Home
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Oct. 19, 2022

Here's what's happening in Mesa, AZ real estate for this week Oct 19th 2022

Mesa, AZ

Wed Oct 19 2022
This week the median list price for Mesa, AZ, is $498,000, with the market action index hovering around 41. This is less than last month's market action index of 42. Inventory has increased to 1,141.

Market Action Index

This answers “How’s the Market?” by comparing the rate of sales versus inventory.

The market has been cooling over time, and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

 

 

 

 

 

 

 

 

 

 

Posted in Brad's Market Updates, Buyers, Gilbert Homes, Mesa Homes, Real Estate News, Sellers, Selling Your Home
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Oct. 19, 2022

The City Of Mesa has approved an ordinance regulating short-term or vacation rentals

Senate Bill 1168 allows Arizona cities and towns to set regulations on short-term rentals. Everything from requiring permits and licenses, to having the ability to issue fines

Senate Bill 1168 allows Arizona cities and towns to set regulations on short-term rentals. Everything from requiring permits and licenses to having the ability to issue fines. Photo: Brad Daniels

Mesa is the latest city to crack down on its short-term rental market after a push by the Arizona Legislature and rental companies to stop the rentals from being public nuisances in local communities.

"[The new ordinance] gives specific requirements for property owners and spells out the penalties for those who allow parties, parking issues, and other code violations that get out of hand,” Mayor John Giles said.

 

The ordinance, set to take effect on Feb. 1, outlines numerous new requirements for short-term rental owners, including:

  • Short-term rental owners must acquire a new Mesa license
  • Contact information of the local person responsible for responding to emergencies and complaints
  • Notifying neighbors that the property will be used for short-term rentals
  • Obtaining minimum liability insurance
  • Numerous prohibitions on how owners can use the property, including housing sex offenders, selling liquor or illegal drugs, and other special events
  • Creates new possible civil penalties against offending owners

Mesa joins other Valley cities, including Glendale, Scottsdale, and Paradise Valley, in issuing short-term rental ordinances after Gov. Doug Ducey signed a new state law in July giving cities the power to do so.

Rental companies have also instituted new policies to discourage parties from happening at their properties. Airbnb, for instance, banned 6,000 people last year for breaking the new rules. However, that didn't seem to slow bookings in the Valley.

 

Author: 12News

Posted in Mesa Homes, Real Estate News
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Oct. 13, 2022

What To Expect for Arizona Housing in the 4th Quarter of 2022

For Buyers: The price reductions keep coming. Last week when mortgage rates hit 7.0%, the Greater Phoenix housing market responded with 4,427 price reductions, 24% of all active properties in the MLS. At least 50% of those dropped their price by $12,000 or more.

September saw 1,372 closings involving seller closing cost assistance to the buyer, equating to 23% of MLS sales, with a median concession of $7,000. This is a 334% increase from last June’s count of just 316 sales involving concessions. New home sales through the MLS showed 33% with concessions and 50% at $10,000 or more. OpenDoor, as a seller, paid concessions on 355 transactions, 77% of their sales through MLS, with 50% costing $6,000 or more.
Closing cost assistance is expected to continue to rise into the 4th quarter as mortgage rates continue to stay high and stifle demand for the time being. Aside from paying the buyer’s costs for title insurance, pre-paid taxes, insurance, lending fees, and other closing costs, seller-paid concessions can also be used to buy down a buyer’s mortgage rate, if applicable, and ease the pressure on their monthly payment.
 

For Sellers: The 4th quarter is expected to be a test for sellers as mortgage rate hikes have reduced contract activity to levels not seen since 2008. Frankly, it’s not the best time to sell if you have a choice in the matter. Unlike in 2008, however, most sellers today do have a choice, and those without an immediate need to sell have chosen to wait. This is reflected in some of the lowest counts of new listings coming on the market recorded at this time of year going back to 2001.

Fewer new listings are a ray of hope for existing properties on the market. If new listings are trickling in and new buyer contracts are trickling out, then the overall supply does not spike and causes further downward pressure on price. Thus keeping the market in a delicate balance for now.
Prices hit their peak in May, shortly after mortgage rates hit 5% and before they peaked at over 6% in June. Once that happened, buyer demand dropped dramatically, and the price reflection showed a downward trend. Now rates are near 7%, and the sale price per square foot is down 9.6% over four months, currently measuring less than 1% higher than January 2022 and representing the elimination of appreciation achieved from January through May.
While this is disappointing to those who purchased this year, 66% of active sellers in the MLS (new homes excluded) have owned their homes for two years or longer. This means that even with the most recent downturn in price, the 2-year appreciation rate from September 2020 to September 2022 is still 40.3% based on per-square-foot measures, and the median sale price is $112,000 higher, indicating most sellers have enough equity to shoulder the added costs to sell in this marketplace if they must.

Finally, heading into the 4th quarter, expect marketing times to increase as they typically do this time of year. The median days on market before the contract was 31 days last week. From October through December, active days before the contract is known to rise anywhere from 44 to 56 days historically, with 50% of listings going longer.

 

The keywords for sellers in this “new” market are condition, price, concessions, and patience.

 

If you are interested in buying or selling, reach out to me. I would love to discuss this further with you and help guide you through the process of determining when might be a good time for you to buy and/or sell. We can also connect you with great lenders who can discuss various financing options like the 2-1 buydown.
The commentary was written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2022 Cromford Associates LLC and Tamboer Consulting.

 

Posted in Brad's Market Updates, Buyers, Buying a Home, Chandler Homes, Gilbert Homes, Loans, Mesa Homes, Real Estate News, Sellers, Selling Your Home
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