Located within the Phoenix Metro Area, Gilbert, Arizona offers a dynamic housing market that attracts homebuyers for its strong appeal. Similar to Scottsdale, Gilbert boasts a flourishing job market, fueling its residential growth. This has led to a competitive market with rising home values.
Whether you're considering buying or selling in Gilbert, understanding current trends is crucial for making informed decisions. This article explores everything you need to know about the Gilbert housing market, including median prices, key trends, and valuable insights to navigate this exciting market.
So, How is the Gilbert Housing Market Doing in 2024?
Gilbert's market leans seller-friendly in 2024 with rising prices and fast sales, but homes still sell close to list price offering some room for buyers. Let's dive deep into the data to give you a clear picture of what to expect in Gilbert's 2024 market.
A Seller's Market with Streamlined Sales
Good news for sellers! The market is tilted in your favor. The median sales price in Gilbert sits at a comfortable $595,000 (Redfin), a healthy 6.3% increase over last year. This translates to strong buyer demand, with homes typically selling within 42 days. That's a significant improvement compared to 2023, where homes lingered on the market for an average of 49 days.
Here's what this means for you as a seller: multiple offers are a distinct possibility, and you can expect to receive close to your asking price. In fact, data shows the average home sells for just 1% below the list price.
Understanding the Market Nuances
It's important to remember that averages don't tell the whole story. The Gilbert market, like any market, has its complexities. Highly desirable properties, sometimes referred to as “hot homes,” can generate bidding wars and sell closer to (or even above) the asking price, disappearing from the market in as little as 19 days.
Affordability and Competition
While home values are on the rise, it's important to consider the national perspective. The good news is that Gilbert offers a relatively affordable option compared to many other parts of the country. The median sales price sits a solid 37% higher than the national average, making it an attractive option for many homebuyers.
The market leans competitive, but not cutthroat. While some homes receive multiple offers, many find buyers within a reasonable timeframe. This creates a good balance for sellers who can expect strong interest without an overwhelming bidding frenzy.
Data Points to Consider
Here are some additional stats to keep in mind as you navigate the Gilbert market:
- Sale-to-List Price Ratio: Currently at 98.8%, this indicates that homes are selling close to their asking price.
- Homes Sold Above List Price: This number sits at 17.6%, highlighting the potential for competitive bidding on highly desirable properties.
- Price Drops: Don't be discouraged by the 32.7% of homes with price reductions. This is a common market strategy and doesn't necessarily indicate that a property is undesirable.
Gilbert Real Estate Market: Home Price Appreciation Trends
For those considering a move to Arizona's vibrant Gilbert community, the housing market offers more than just sunshine and stunning scenery. Over the past decade, Gilbert has emerged as a national leader in real estate appreciation, making it a compelling option for both homebuyers and investors.
But beyond the headlines, a deeper look into the data reveals a market with a fascinating history and some recent subtleties. Let's delve into the numbers and see why Gilbert stands out.
Over the past ten years, Gilbert real estate has seen a remarkable appreciation of 126.35% (Neighborhoodscout). This translates to an impressive average annual growth rate of 8.51%, placing Gilbert firmly within the top 20% of appreciating markets nationwide. This consistent upward trend paints a clear picture: Gilbert has a proven track record of being a strong long-term real estate investment.
However, it's important to understand that real estate, like any investment, experiences fluctuations. While the long-term trend in Gilbert is undeniably positive, recent quarters have shown some moderation.
The latest quarter (Q3 2023 to Q4 2023) reflects a modest appreciation of 0.45%, which is lower than both the national and Arizona averages. Similarly, the past year (Q4 2022 to Q4 2023) witnessed a slight dip of 2.07%. This is a reminder that even robust markets can experience temporary slowdowns, and understanding these nuances can be crucial for navigating the market.
Zooming in on Recent Trends:
The data offers a closer look at how appreciation rates have shifted in recent periods:
- Last Quarter (Q3 2023 – Q4 2023): 0.45% appreciation (ranked 6th in Arizona, 5th nationally)
- Last 12 Months (Q4 2022 – Q4 2023): -2.07% appreciation (ranked 2nd lowest in Arizona, lowest nationally)
- Last 2 Years (Q4 2021 – Q4 2023): 7.77% appreciation (ranked 3rd in Arizona, tied for 1st nationally)
- Last 5 Years (Q4 2018 – Q4 2023): 61.36% appreciation (ranked 4th in Arizona, 8th nationally)
Looking at broader timeframes, a clearer picture emerges. Over the past five years, Gilbert real estate has appreciated by a solid 61.36%, averaging a healthy 10.04% annually.
This positions Gilbert among the top 4 appreciating markets in Arizona and the top 8 nationally for that period. Even further back, the 20-year appreciation (since 2000) sits at a substantial 208.45%, solidifying Gilbert's status as a market with consistent growth potential.
While past performance is not a guarantee of future results, Gilbert's impressive track record provides valuable insights for those considering putting down roots in this thriving community.
If you're looking for a place to live or invest where your property has a high likelihood of appreciating in value over time, then Gilbert deserves serious consideration.
However, keeping a pulse on recent trends and market conditions is vital for making informed decisions. Consulting with a qualified real estate professional can help you tailor your approach and navigate the market's complexities, ensuring you make the most of Gilbert's exciting potential.
Gilbert Housing Market Predictions
The housing market can feel like a crystal ball – full of potential but shrouded in uncertainty. As a prospective buyer or seller in Gilbert, Arizona, you're likely wondering: what's next for this dynamic market? Will it experience a boom or a crash? Let's delve into the data and see what insights we can glean to help you navigate the path forward.
A Market on the Rise
The current picture of the Gilbert market paints a positive outlook. Home values have climbed steadily, with the average Gilbert home valued at $584,268 (Zillow), reflecting a healthy 5.9% increase over the past year. This translates to strong buyer demand, evidenced by homes typically going pending in a swift 11 days. This speed suggests a competitive environment where properties are snatched up quickly.
Striking a Balance
While sellers are in a favorable position, the market isn't a runaway train. The median sale-to-list ratio sits at a balanced 0.992, indicating that homes are generally selling close to their asking price.
This avoids a scenario of extreme overpricing, offering some breathing room for buyers. Additionally, the data reveals a healthy mix of sales: 18% of properties sell above list price, potentially due to bidding wars for the most desirable homes, while 57.5% sell under list price.
This suggests there are still opportunities for buyers to find good deals, especially if they are flexible or willing to act quickly.
Looking Ahead: A Measured Optimism
Predicting the future of any market is tricky, and real estate is no exception. However, based on current trends, a dramatic crash seems unlikely in Gilbert. The market exhibits healthy growth, strong buyer demand, and a balanced pricing structure. These factors suggest continued stability with a potential for modest price increases in the coming year.
It's important to remember that real estate is influenced by more than just statistics. Local economic factors, interest rates, and national housing trends can all play a role. Staying informed about these broader influences will give you a more holistic understanding of the market.
The Final Word: The Gilbert housing market in 2024 appears to be a seller's market with a silver lining for buyers. While homes are moving quickly and prices are rising, the balanced sale-to-list ratio and presence of under-list-price transactions offer opportunities for both parties.
This graph (Zillow) illustrates the growth of home values in the region over the past year, along with a forecast suggesting this trend will likely continue for the next year.
Should You Invest in the Gilbert Real Estate Market?
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. In 2022, Gilbert, AZ had a population of 267k people with a median age of 35.4 and a median household income of $115,179.
Between 2021 and 2022 the population of Gilbert, AZ grew from 262,249 to 267,267 (Datausa), a 1.91% increase and its median household income grew from $105,733 to $115,179, a 8.93% increase. 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.