Welcome to the last quarter of 2020….a year we won’t soon forget! At Newman Realty we are starting our final push of the year and preparing for 2021. A lot of today’s message will be about our current, local real estate market and what comes next. We are very grateful for the business we have been able to do so far this year and for the clients that extended their trust in us to represent their interests. That trust is no small thing and we treat it with the honor and respect it deserves.
Our current local Gilbertreal estate market has not changed much since the last update. Low inventory and high demand are still the norm and most homes are selling quickly
Case in point- we recently listed a property in Kensignton Estates in Gilbert (take a virtual home tour below). Normally we would prepare professional media for the listing, market the home as coming soon for a couple of days, then hit the market on a Thursday, with open houses Saturday and Sunday. In today’s market, if the home shows well and is priced well, then chances are the seller will be reviewing multiple offers that Monday. In this case the seller preference was to list as soon as media was ready, not have a yard sign or open houses. Media came back Saturday morning and the listing was activated at 11:00am. By Sunday evening (next day) we had 11 showings and 3 offers. All offers will above asking price and one had an escalation clause to take it up to $15000 above asking price. In the end the seller had to decide between two very good offers, each about $10,000 above asking price.
This is not an unusual scenario these days. Buyer’s have to be creative AND aggressive in their offer strategies if they are going to secure a property in this competitive market. Since January 1, 2020 Mickie and I have had the pleasure of representing 14 sellers of property in our local market. 8 sold in less than 7 days and average days on market was 29 (some properties listed right at the stay at home order stayed on market for longer). 10 listing sold for above asking price.
Despite the pandemic that has caused so much disruption for everyone, and a Stay at Home Order from the Governor’s office for part of April and most of May, economic turmoil, social unrest, and a very contentious election year, despite all of that the local housing market has remained active, competitive and strong. Values are going up. Builders can’t build new homes fast enough and existing homes sell fast. This full head of steam is heading right into election night in just under 30 days.
So what comes next?
For years we have had some predictable cycles in our markets. Families move in the summer so more family sized homes sell in the spring, winter visitors arrive in Nov and start shopping for housing right after the holidays, Halloween to New Year’s Eve is usually a slower time for home sales. Right now there is no sign of a slow down for the holidays.
We never truly know what is to come in any market. The financial collapse of 2007-2008 came up pretty fast and through a fast moving housing market right off the tracks. We know that values cannot continue to go up unabated forever, at some point there is always a correction. I would have guessed that correction would have come during April-May but it really didn’t. New arrivals to the state of Arizona and record low interest rates seemed to have overcome any damage the economy or employment may have caused. Long term it will be interesting to see how this plays out but until migration slows up, demand for housing in Arizona will likely leave sellers in the drivers seat. Keep an eye on local business performance and local unemployment numbers, those indicators will likely precede any correction in housing markets.
Remember that we are local experts in real estate, we are your trusted advisors and counsel with 16 years in the local market and dozens of great online reviews. We are always available to assist you if you, or someone you know, has questions or is interested in making a move. We offer free consultations and outstanding service. Please know you can refer your friends and family with confidence.
Until next time, stay safe, stay connected and stay optimistic about what’s to come. That’s todays recipe for success.
Mark Newman – Owner/Broker
Click below to take a virtual home tour of this gorgeous home for sale
Located in Gilbert AZ, Kensington Estates