Slower Sales Not Cause For Alarm in Suburban Phoenix

This year has seen a steady decline in the resale market and median home prices in Gilbert, Ariz., despite home mortgage rates staying low, say studies released by Arizona State University.

But real estate experts say this is no reason for homeowners to panic.

“In a sense it’s a correction in the market after being hyper for the last couple years,” said Jay Butler, director of Realty Studies at ASU’s Polytechnic campus in Mesa.

Data released for February shows the resale market in Gilbert, located outside Phoenix, at 230 homes, down from 290 last February. The median price also decreased from $341,000 to $307,500.

Butler said that despite low Arizona mortgage costs, the selling market probably will not improve for a while because it is currently working at its historical norm.

“Basically it’s doing what would be expected,” he said.

He added the study only includes homes that have sold, and not the value of all homes in the Valley, where Phoenix home loan values have skyrockted in the past five years.

“If you’re sitting in your home and you don’t want to sell it, it probably has decreased a bit,” he said. “But if you’re making your monthly payments and you bought your home a couple years ago, you’re probably at where you bought it for and eventually it will go up.”

Fewer home sales do not necessarily indicate a poor Arizona housing market.

“If people are happy where they are, they’re not going to put their homes on the market,” he said.

Wayne Hatch of The Manors at Val Vista and Elliot roads falls in this category; happy with his home, his neighborhood and unconcerned by the changing market.

“The Gilbert, East and Southeast Valley markets were a little out of control over the past few years and we had many outsiders coming in and investing in the housing market, which inflated the real value of our market,” he said. ”Now that things have calmed down I think we are returning to the real market values, which are still very good.”

He has lived in Gilbert for 16 years and has no immediate plans to sell his home, saying in spite of the recent growth of Gilbert, the small-town feel remains and makes for a welcoming environment to live in.

“In my opinion this is still a great place to raise a family,” he said.

Councilwoman Joan Krueger, a real estate agent, is also not worried by the changing market. Growth in Gilbert continues, but now it is from a more commercial standpoint than residential.

“The council has known for some time that our focus must turn, now, from residential, which we believe is taking care of itself, to retail, commercial and employment uses,” she said.

She added the growth Gilbert has seen in the last decade has been well-managed, but as the market changes, the council needs to be careful when making future planning decisions.

“It is incumbent upon the council and staff to ensure that the decisions that are made provide the balance the community needs,” she said. “The future of Gilbert depends on hard work and courage to do what’s right in the long run.”

SOURCE: Newszap.com