Market Conditions - July 19, 2006 by Carla L. Davis
With a population nearing 175,000, Gilbert, Arizona, saw a surge in home prices the last few years as supply tried to keep up with growing demand. Home prices increased by an unbelievable 48 percent last year -- and the market continues to grow. Once an agricultural center, the city has grown in population by 35 percent since just 1980. And experts report that it is growing at a rate of 1,000 residents a month. Currently the market sees nearly 3,000 homes on the market, with an average market time of 67 days. As the market slowed in the rest of the country, it slowed in Gilbert as well. More homes went onto the market, making it more difficult for sellers. After nearly 6 months of steady increases in listing, the market appears to have come to some sort of stabilization. One expert reports, "Prices for existing homes have peaked for now after a huge climb between 2004 and 2005. The overall median price for a home in the valley reached $267,000 June, partly because 40 percent of the homes sold were over 300 thousand. Gilbert prices for resale homes was up slightly in June, from $327,000 in May to $330,000, even though the number of sales were down." As demand grows -- so does the new home market. "New home builders are now offering incentives to lure buyers, compared to this time last year when you had to be in a lottery to even have a chance at a new home. The number of spec homes on the market has increased because people have had to let their new homes go back to the builder because they can't sell their existing homes." |
