November 2012-Gilbert AZ Market Update

MARKET UPDATESolutions Real Estate

· Current Real Estate Market Conditions for Single Family Homes· Trends in Pricing· Current Levels of Supply and Demand· Value Metrics

"Report for the week of"November 26, 2012

· Presented by David DionSolutions Real Estatewww.SolutionsRealEstate.com - [email protected]

GILBERT, AZ

Powered by Altos Research LLC | www.altosresearch.com | Copyright ©2005-2010 Altos Research LLC

Median List Price

Median Lot Size

25.8

Percent Relisted (reset DOM)

2274

2.0

15 %

Median Number of Bathrooms

93

Inventory of Properties Listed

$ 108

Percent Flip (price increased)

6,501 - 8,000 sqft

Median House Size (sq ft)

$ 255,000

30 %

4.0

Market Action Index

Median Number of Bedrooms

Asking Price Per Square Foot

n/a

Percent of Properties with Price Decrease

Buyer's Advantage

±+

==

±+

±+

≠≠

Altos Research Value Statistics

Most Expensive Listing

Average Days on Market (DoM)

Bottom/Fourth

Lower/Third

Upper/Second

Top/First

This Week Real-Time Market Profile Trend

The Market Action Index answers the question "How's the Market?" by measuringthe current rate of sale versus the amount of the inventory. Index above 30implies a seller's advantage. Below 30, conditions give the advantage to thebuyer.

Supply and Demand

Characteristics per Quartile

9 153578

782.0 11

3.0

20

87

4.0 204

109

20

22

0.25 - 0.50acre

13

$ 218,975

13

27

205

3.0

6,501 -8,000 sqft

193.0

1604 4,501 -6,500 sqft

204

$ 150,000

4.0

100

8,001 -10,000 sqft$ 289,950

4.0$ 429,900

11

19

2570

With inventory and days-on-marketbasically unchanged and the MarketAction Index decreasing, the marketis not sending strong directionalsignal for the near-term outlook.

Monday November 26, 2012

David Dion | Solutions Real Estate | 480-332-5942 | www.

204

2046

2.0

The median list price in GILBERT, AZthis week is $255,000. The 817properties have been on the marketfor an average of 93 days.

Most expensive 25% of properties

Upper-middle 25% of properties

Lower-middle 25% of properties

Least expensive 25% of properties

Quartile Median Price Lot Size Beds Baths Age Inventory New Absorbed DOMSq. Ft.

No change

Strong upward trend Strong downward trend

Slight upward trend Slight downward trend±+

== ≠≠

≠=

GILBERT, AZCity Overview

Least Expensive Listing

Average List Price

Average Age of Listing

817

$ 2,100,000

$ 60,000

$ 297,336

12

Trend Key:

The market has shown someevidence of slowing recently. Bothprices and inventory levels arerelatively unchanged in recentweeks. Watch the Market ActionIndex for changes as it can be aleading indicator for price changes.

Page 2 of 36

Single Family Homes in

Katy Katz, Associate Broker at Solutions Real Estate | www.KatyKatz.com | 602-618-0917


City OverviewGILBERT, AZ


Median PricePrices continue their climb again this week. We're a long way from the market's price high-point so watch the Market ActionIndex as an indicator of how long this trend will last.

90-day Average7-day Average

Quartile PricesPrices have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift(up or down) in the Market Action Index before prices move from these current levels.

First/Top Second/Upper Third/Lower Fourth/Bottom

Page 3 of 36






Price per Square FootIn a market where prices are rising fairly consistently, price per square foot is essentially flat. This often implies that newhomes coming on the market are pricier, and also larger than older homes. As a result the value one can buy stays the same.


Inventory of Properties Listed for SaleInventory has been relatively steady around these levels in recent weeks.


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Market Action IndexThe GILBERT market is currently in the Buyer's Advantage zone (below 30), though not strongly so. The 90-day Market ActionIndex stands this week at 25.83 so buyers should expect to find reasonable levels of selection.

Buyers/Sellers Cutoff90-day Average

Market Action Index per QuartileThree of the four quartiles of the market are in the Buyer's Market zone with several months of inventory given the current rateof demand for homes in the quartile. Notice that Quartile 1 (the highest price group) is showing stronger demand than theothers. Current supply/demand levels identify Quartile 1 as a Seller's market as buyers seem to be placing emphasis on thepremium homes.


Buyers/Sellers Cutoff

Residential house prices are a function of supply and demand, and market conditions can be characterizedby analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’sAdvantage zone (below 30) for a long period, prices are likely in for a downward correction.

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Days on MarketThe properties have been on the market for an average of 93 days. Half of the listings have come newly on the market in thepast 57 or so days.


Days on Market per QuartileIt is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.


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Median List Price

Median Lot Size

29.2


2240

2.0

14 %


88


$ 98


6,501 - 8,000 sqft


$ 219,475

21 %

4.0

Market Action Index



n/a


Buyer's Advantage

±+

==

±+

==

==




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


12 43372

972.0 14

3.0

3

71

4.0 32

114

5

7

0.25 - 0.50acre

12

$ 195,700

1

5

32

3.0

4,501 -6,500 sqft

22.0

1517 4,501 -6,500 sqft

32

$ 144,950

4.0

69

6,501 -8,000 sqft$ 250,450

5.0$ 347,000

15

1

2294

Even though the days-on-market istrending higher, so is the MarketAction Index at these inventorylevels, providing a neutral outlook forthe market.



32

2014

2.0

The median list price in GILBERT, AZ85296 this week is $219,475. The 128properties have been on the marketfor an average of 88 days.






No change



== ≠≠

≠=

GILBERT, AZ 85296Neighborhood Detail


Average List Price


128

$ 1,050,000

$ 86,500

$ 245,711

13

Trend Key:


Page 7 of 36




Neighborhood DetailGILBERT, AZ 85296


Median PriceThe market for this zip code continues its bounce again this week. We're a long way from the market's high point so watch theMarket Action Index to predict how long this trend will last.


Quartile PricesIn the quartile market segments, we see prices in this zip code have settled at a price plateau across the board. Prices in allfour quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move fromthese current levels.


Page 8 of 36










Page 9 of 36






Market Action IndexThe GILBERT, 85296 market is currently in the Buyer's Advantage zone (below 30), though not strongly so. The 90-day MarketAction Index stands this week at 29.20 so buyers should expect to find reasonable levels of selection.


Market Action Index per QuartileTwo of the four quartiles of this zip code are in the Buyer's Market zone with several months of inventory given the currentlevels of demand and two of the quartiles are in the Seller's Market zone.




Page 10 of 36










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Median List Price

Median Lot Size

26.1


2274

2.0

8 %


90


$ 108


6,501 - 8,000 sqft


$ 247,500

32 %

4.0

Market Action Index



n/a


Buyer's Advantage

≠≠

==

==

±+

≠≠




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


15 03627

752.0 19

3.0

1

99

4.0 35

102

6

3

0.25 - 0.50acre

18

$ 199,900

2

1

35

3.0

4,501 -6,500 sqft

53.0

1562 4,501 -6,500 sqft

34

$ 140,000

4.0

83

8,001 -10,000 sqft$ 277,900

4.0$ 489,450

16

1

2482

The Market Action Index has beentrending down lately, indicatingdemand falling along with supply.Conditions point to mildly negativetrends for the market.



34

1952

2.0







No change



== ≠≠

≠=



Average List Price


138

$ 2,100,000

$ 60,000

$ 331,606

17

Trend Key:


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Price per Square FootThe market appears to be placing an increasing premium on homes. When list prices and price per square foot consistentlyincrease in tandem, as they're doing now, you can often find short-term investment opportunities. Watch the Market ActionIndex for persistent changes as a leading indicator for these trends to flatten or drop.


Inventory of Properties Listed for SaleInventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look tothe Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.


Page 14 of 36








Market Action Index per QuartileThe lower end of this zip code are in the Buyer's Market zone with several months of inventory given the current levels ofdemand. The high-end of the market is showing demand strength in the Seller's Market zone, while Quartiles 3 and 4 have aMarket Action Index below 30 (Buyer's Market).




Page 15 of 36










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Median List Price

Median Lot Size

25.9


2258

2.0

12 %


104


$ 104


6,501 - 8,000 sqft


$ 226,000

28 %

4.0

Market Action Index



n/a


Buyer's Advantage

==

==

±+

≠≠

≠≠




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


17 03273

762.0 17

3.0

1

92

4.0 29

119

2

1

8,001 -10,000 sqft

18

$ 199,900

1

3

30

3.0

6,501 -8,000 sqft

22.5

1492 4,501 -6,500 sqft

29

$ 133,450

4.0

128

8,001 -10,000 sqft$ 260,000

4.0$ 370,000

16

3

2423

Inventory is up and Market Action istrending down recently. While days-on-market appears to be trendinglower, the overall conditions areweakening a bit.



29

1817

2.0







No change



== ≠≠

≠=



Average List Price


117

$ 549,900

$ 71,000

$ 241,973

19

Trend Key:


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Page 18 of 36








Inventory of Properties Listed for SaleInventory has been climbing lately. Note that rising inventory alone does not signal a weakening market. Look to the MarketAction Index and Days on Market trends to gauge whether buyer interest is keeping up with available supply.


Page 19 of 36












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Page 21 of 36



Median List Price

Median Lot Size

22.1


2241

2.0

21 %


93


$ 132


6,501 - 8,000 sqft


$ 306,159

32 %

4.0

Market Action Index



n/a


Strong Buyer's

==

==

==

±+

≠≠




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


7 33766

712.0 8

3.0

4

81

3.0 49

99

8

4

0.25 - 0.50acre

8

$ 277,000

4

6

50

3.5

6,501 -8,000 sqft

22.2

1682 4,501 -6,500 sqft

49

$ 210,000

4.0

121

8,001 -10,000 sqft$ 340,000

4.0$ 450,000

6

6

2692

The Market Action Index has beentrending down lately, while inventoryis climbing. These trends imply aweakening market.



49

2109

2.0







No change



== ≠≠

≠=



Average List Price


197

$ 1,795,000

$ 115,000

$ 340,248

6

Trend Key:


Page 22 of 36










Page 23 of 36








Inventory of Properties Listed for SaleInventory has been climbing lately. Note that rising inventory alone does not signal a weakening market. Look to the MarketAction Index and Days on Market trends to gauge whether buyer interest is keeping up with available supply.


Page 24 of 36






Market Action IndexThe GILBERT, 85298 market is currently quite strongly in the Buyer's Advantage zone (below 30). The 90-day Market Action Indexstands at 22.12. With several months of inventory available at the current sales rate, buyers should find ample choice.


Market Action Index per QuartileNot surprisingly, all quartiles are in the Buyer's Market zone with several months of inventory given the current levels ofdemand. Watch the quartiles for changes before the overall market shifts.




Page 25 of 36










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Median List Price

Median Lot Size

26.7


2274

2.0

13 %


84


$ 105


6,501 - 8,000 sqft


$ 232,800

28 %

4.0

Market Action Index



n/a


Buyer's Advantage

≠≠

==

==

±+

±+




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


9 43690

702.0 7

3.0

4

79

3.0 30

92

4

2

0.25 - 0.50acre

6

$ 198,500

3

4

30

3.2

4,501 -6,500 sqft

63.0

1588 Less than4,500 sqft

30

$ 139,950

4.0

96

8,001 -10,000 sqft$ 284,400

5.0$ 475,000

9

4

2754

Inventory has been tightening butdays-on-market and the Market ActionIndex have been basically unchanged,not providing strong indication formarket conditions.



29

1906

2.0







No change



== ≠≠

≠=



Average List Price


119

$ 777,500

$ 84,000

$ 278,601

8

Trend Key:


Page 27 of 36






Median PriceDespite this week's down tic, price trends in this zip code have generally been moving up lately. We are below the market's highpoint, and we'll investigate the Market Action Index later on to see if we expect this week's blip to become a downward trend.




Page 28 of 36








Inventory of Properties Listed for SaleInventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look tothe Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.


Page 29 of 36












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Page 31 of 36



Median List Price

Median Lot Size

24.8


2389

2.0

18 %


104


$ 105


6,501 - 8,000 sqft


$ 249,450

36 %

4.0

Market Action Index



n/a


Buyer's Advantage

±+

±+

±+

==

≠≠




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


7 33833

762.0 10

3.0

4

106

4.0 30

131

1

5

0.25 - 0.50acre

9

$ 223,550

4

3

30

3.0

6,501 -8,000 sqft

23.0

1695 4,501 -6,500 sqft

29

$ 174,900

4.0

102

8,001 -10,000 sqft$ 299,990

4.0$ 465,726

10

5

3100

The Market Action index has beentrending down lately, while days-on-market is climbing, providing mostlybearish signs for the market.



29

2244

2.0







No change



== ≠≠

≠=



Average List Price


118

$ 1,585,000

$ 114,900

$ 315,406

9

Trend Key:


Page 32 of 36






Median PriceWe continue to see prices in this zip code bouncing around this plateau. Look for a persistent up-shift in the Market Action Indexbefore we see prices move from these levels.




Page 33 of 36






Price per Square FootThe market plateau is seen across the price and value. The price per square foot and median list price have both beenreasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves fromthese levels.




Page 34 of 36








Market Action Index per QuartileNot surprisingly, all quartiles are in the Buyer's Market zone with several months of inventory given the current levels ofdemand. Watch the quartiles for changes before the overall market shifts.




Page 35 of 36










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November 2012-Gilbert AZ Market Update

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