Gilbert Housing Market Trends and Predictions for 2024

Considering the competitive nature of the market, the relatively quick selling time, and the high median sale price, the current housing market in Gilbert leans towards being a seller’s market. Sellers may find favorable conditions to maximize their property values, while buyers should be prepared for competition and act promptly when identifying suitable homes.

Gilbert, Arizona, is a town brimming with potential for homebuyers and investors alike. Nestled amidst the stunning Sonoran Desert, Gilbert offers a vibrant community, excellent schools, and a booming job market, making it a highly sought-after destination. But what truly sets Gilbert apart is its thriving housing market, characterized by steady growth, diverse offerings, and a dynamic atmosphere.

Gilbert, AZ Housing Market Trends

How is the Housing Market Doing Currently?

The housing market in Gilbert, AZ, witnessed a positive trend in December 2023. According to Redfin, home prices experienced a robust growth of 5.2% compared to the previous year, reaching a median price of $553K. This upward trajectory is indicative of a thriving real estate market in the area.

On average, homes in Gilbert are spending 48 days on the market, a notable improvement from 56 days recorded last year. Despite a slight decrease in the number of homes sold, with 182 homes sold in December compared to 206 in the previous year, the market remains active and dynamic.

How Competitive is the Gilbert Housing Market?

Gilbert’s housing market is described as somewhat competitive, with homes selling in 42 days on average. Some properties even receive multiple offers, indicating a demand that outstrips supply. The median sale price in Gilbert is 42% higher than the national average, showcasing the city’s desirability among homebuyers.

Notably, the average homes sell for about 2% below the list price, with a quick turnaround of 42 days until they go pending. Additionally, hot homes can sell for around list price and go pending in an impressive 20 days.

Are There Enough Homes for Sale to Meet Buyer Demand?

The real estate landscape in Gilbert is marked by a 98.2% sale-to-list price ratio, indicating a healthy market where homes are selling close to their listed prices. The percentage of homes sold above list price has also seen an 11.5% increase year-over-year, further highlighting the competitive nature of the market.

However, there is a positive sign for buyers as well, with 17.8% of homes experiencing price drops, a -9.03% decrease from the previous year. This may present opportunities for savvy buyers looking for potential deals in a market that has seen some adjustment.

What is the Future Gilbert Market Outlook?

Looking ahead, the migration and relocation trends in Gilbert from November ’23 to January ’24 provide insights into the future market dynamics. While 25% of homebuyers searched to move out of Gilbert, a majority of 75% expressed the intention to stay within the metropolitan area. This suggests a strong local market with residents choosing to remain in the region.

From a national perspective, only 3% of homebuyers searched to move into Gilbert from outside metros. Seattle leads the list of cities whose residents are considering a move to Gilbert, followed by Los Angeles and San Francisco.

Gilbert Housing Market Predictions for 2024

According to Zillow, a prominent real estate database, the average home value in Gilbert is $563,010, experiencing a slight decline of 0.2% over the past year. Additionally, homes in Gilbert typically go pending within approximately 26 days.

Key Metrics Explained

For Sale Inventory (as of December 31, 2023)

The for-sale inventory in Gilbert, as of December 31, 2023, stands at 642. This metric reflects the number of homes actively available for purchase, offering insights into the current supply in the market.

New Listings (as of December 31, 2023)

There were 217 new listings in Gilbert as of December 31, 2023. New listings signify the influx of properties into the market, influencing the overall dynamics and potential choices for prospective buyers.

Median Sale to List Ratio (as of November 30, 2023)

The median sale to list ratio, a significant indicator of market competitiveness, stands at 0.994 as of November 30, 2023. This ratio reveals the relationship between the listing price and the actual sale price, providing crucial insights for both buyers and sellers.

Median Sale Price (as of November 30, 2023)

The median sale price in Gilbert, as of November 30, 2023, is $560,000. This represents the middle point of all recorded sale prices, offering a benchmark for understanding the pricing trends within the market.

Median List Price (as of December 31, 2023)

The median list price, indicating the midpoint of all listed prices, is $618,283 as of December 31, 2023. This metric provides valuable information on the pricing expectations set by sellers in the current market.

Percent of Sales Over List Price (as of November 30, 2023)

Notably, 18.6% of sales in Gilbert surpassed the list price as of November 30, 2023. This statistic underscores the competitive nature of the market, with a considerable portion of transactions exceeding initial price expectations.

Percent of Sales Under List Price (as of November 30, 2023)

Conversely, 53.6% of sales in Gilbert occurred under the list price as of November 30, 2023. This figure provides insights into the prevalence of negotiability in the market, allowing buyers to secure properties at prices below the initial listing.

Are Home Prices Dropping in Gilbert?

While the average home value in Gilbert has experienced a slight decline of 0.2% over the past year, it does not necessarily indicate a widespread drop in home prices. Market fluctuations are common, and this modest decrease suggests a relatively stable market. However, individual property prices may vary, and it’s essential for buyers and sellers to consider specific factors impacting their target properties.

Will the Gilbert Housing Market Crash?

As of the available data, there is no indication of an imminent housing market crash in Gilbert. The market exhibits stability with a reasonable balance between supply and demand. It’s important to note that real estate markets are influenced by various factors, and continuous monitoring is advisable. Consulting with real estate professionals and staying informed about economic trends can help navigate potential market shifts.

Is Now a Good Time to Buy a House in Gilbert?

The decision of whether it’s a good time to buy a house depends on individual circumstances and goals. With a median sale price of $560,000 and a median list price of $618,283, prospective buyers should carefully assess their financial readiness and long-term plans. The market’s current dynamics, including the percentage of sales under list price (53.6%), provide favorable conditions for negotiation, potentially making it an opportune time for buyers to explore the Gilbert housing market.

Is Gilbert a Good Place for Real Estate Investment?

Gilbert, Arizona, presents a compelling case for real estate investment, supported by several factors that make it an attractive destination for prospective investors.

Favorable Economic Environment

Gilbert boasts a strong and diverse economy, driven by a mix of industries including healthcare, education, technology, and manufacturing. The stable economy creates a conducive environment for real estate investment, ensuring a consistent demand for housing and commercial spaces.

Population Growth and Demand

The city has been experiencing a steady population growth due to its quality of life, excellent schools, and employment opportunities. A growing population typically indicates a rising demand for housing, which can lead to appreciation in property values, making it a promising area for real estate investment.

Quality of Life and Amenities

Gilbert is known for offering a high quality of life with safe neighborhoods, excellent schools, recreational facilities, and cultural attractions. These amenities make it an appealing location for families and professionals, enhancing the demand for residential properties.

Infrastructure Development

The city has made significant investments in infrastructure development, including transportation, utilities, and public services. These enhancements contribute to the overall appeal of the area, attracting potential investors and residents alike.

Stability in the Housing Market

While experiencing a modest decrease in home prices recently, Gilbert’s housing market remains relatively stable and resilient. The competitive market, with homes selling quickly and a balanced median sale-to-list ratio, suggests a healthy real estate environment for both buyers and sellers.

Conclusion

Considering its robust economy, population growth, quality of life, infrastructure development, and stability in the housing market, Gilbert, Arizona, appears to be a promising location for real estate investment. However, like any investment decision, thorough research, careful assessment of market trends, and consultation with real estate professionals are essential to make an informed and successful investment.

References:

• https://www.zillow.com/Gilbert-az/home-values/                     
• https://www.redfin.com/city/6998/AZ/Gilbert/housing-market               
• https://www.realtor.com/realestateandhomes-search/Gilbert_AZ/overview