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November 4th, 2019 by Marco Santarelli
Over the last several years owning real estate has become much more attractive. It’s tangible, you can drive by it and see it. Many investors would be keen to find out whether they should invest in the Gilbert real estate or not. In this article, our focus will be on the Gilbert real estate market and investment opportunities in 2020.
Gilbert, Arizona is a suburb of Phoenix, Arizona often overlooked in favor of glitzier suburbs like Scottsdale, a town best known for its year-round, world-class golf courses. Yet Gilbert has a number of points in its favor that make it a better choice for investors.
Gilbert has literally grown from a hay capital of the United States to a full-fledged city. Gilbert is home to roughly a quarter million people, and it is continuing to add people. Gilbert is currently the sixth largest city in the state and the fifth largest in the Phoenix metro area.
It is one of safest U.S. Cities based upon FBI crime statistics. Gilbert has maintained high standard of living for its residents throughout its long period of on-going growth & development. Gilbert real estate is producing high rental income for investors because there are many affluent renters who want to be part of the desirable Gilbert community.
Is Gilbert going to be one of the hottest real estate markets for investors in 2020? Let’s take a deep look at the latest Gilbert housing market trends to come to a conclusion.
Gilbert Real Estate Market Forecast 2020
The real estate data from Zillow, shows that the median home value in Gilbert is $344,700. Gilbert home values have gone up 5.9% over the past year and their Gilbert real estate market prediction is that the prices will rise 4.1% within the next year.
The median list price per square foot in Gilbert is $168, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $165.
The median price of homes currently listed in Gilbert is $359,650 while the median price of homes that sold is $318,300. The median rent price in Gilbert is $1,750, which is higher than the Phoenix-Mesa-Scottsdale Metro median of $1,595.
Here is the Gilbert, AZ real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 4.1% till Sep 2020.
Gilbert Real Estate Market Trends
We shall discuss some of the most recent housing trends in the Gilbert area. Currently, Trulia has 885 resale and new homes for sale in Gilbert, AZ, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sale price in Gilbert, AZ is $353,000. Homes are selling for about $170/sqft.
In the past month, 485 homes have been sold in Gilbert, Arizona as reported by Redfin.com. In addition to houses in Gilbert, there were also 14 condos, 43 townhouses, and 1 multi-family unit for sale in Gilbert last month.
As per their real estate data, the Gilbert housing market is very competitive. Homes in Gilbert receive 1 offers on average and sell in around 33 days.
The average sale price of a home in Gilbert was $348K last month, up 6.9% since last year. The average sale price per square foot in Gilbert is $170, up 3.7% since last year. Homes typically receive 1 offer.
Properties for sale in the Gilbert housing market sell for about 1% below list price and go pending in around 33 days. A hot listing in Gilbert can sell for around list price and go pending in around 11 days.
There are 1,168 homes for sale in Gilbert, AZ on Realtor.com. 136 properties were newly listed within the last week. The Gilbert home prices range from $121K to $3M. Additionally, there are 267 Gilbert rentals for sale, and their rent price ranges from $889 to $7K per month.
According to their statistics, In September 2019, the Gilbert housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%.
In Gilbert buyers have held good leverage in these negotiations. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In September 2019, the median list price of homes in Gilbert, AZ was $359.9K, trending up 6.2% year-over-year. The median listing price per square foot was $173.
The median sale price was $340K. On average, homes in Gilbert, AZ sell after 46 days on the market. The trend for median days on market in Gilbert, AZ has gone up since last month.
The median list price in Gilbert, AZ is $449,000 on Movoto.com. The median list price in Gilbert went up 4% from September to October. Gilbert’s home resale inventories is 515, which increased 5 percent since September 2019.
The median list price per square foot in Gilbert is $174. In September 2019 it was $173. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October 2019.
Gilbert, AZ Single Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
As per the real estate company called Neigborhoodscout.com, the median house price in Gilbert, AZ is just $359,278, which indicates that home prices in Gilbert are well above the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Gilbert, accounting for 86.11% of the town’s housing units. Three and four bedroom single-family detached homes are the most common housing units in Akron.
Other types of housing that are prevalent in Gilbert include large apartment complexes, row houses and a few duplexes. Owner-occupied housing accounts for 71.98% of Gilbert’s single family homes.
Currently, there are 833 single family homes for sale in Gilbert, AZ on Zillow. Additionally, there are 269 single family homes for rent in Gilbert, AZ.
Under potential listings, there are about 0 Foreclosed and 99 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Gilbert, AZ Foreclosures And Bank Owned Homes Statistics
There is a very limited supply of Gilbert AZ foreclosures and you can expect the sales price of these homes to be at or above list price. Buyer demand remains high for foreclosed properties in Gilbert.
As per the Gilbert foreclosure data by Zillow, in Gilbert 0.1 homes are foreclosed (per 10,000). This is lower than the Phoenix-Mesa-Scottsdale Metro value of 0.5 and also lower than the national value of 1.2.
The percent of delinquent mortgages in Gilbert is 0.4%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Gilbert homeowners underwater on their mortgage is 6.8%, which is lower than Phoenix-Mesa-Scottsdale Metro at 7.1%.
There are currently 108 properties in Gilbert, AZ that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 548.
In September 2019, the number of properties that received a foreclosure filing in Gilbert, AZ was 6% lower than the previous month and 33% lower than the same time last year.
Best Neighborhoods to Invest in Gilbert Rental Real Estate
If you are looking to invest in the Gilbert rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Gilbert rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Akron real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Gilbert rental property should be low. The neighborhoods in Gilbert must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 25 elementary schools, 25 middle schools, 24 high schools and 5 private & charter schools in Gilbert, AZ. There are 22 neighborhoods in Gilbert.
The best neighborhoods in Gilbert, Arizona are Power Ranch, Seville, The Islands, Ocotillo, Val Vista Lakes, Arden Park, Gilbert Commons, Agritopia, Willows, Layton Lakes, Chandler Ranch, Higley Groves, Higley Groves West, Shamrock Estates, and East Mesa.
Agritopia has a median listing price of $550K, making it the most expensive neighborhood. Cottonwoods Crossing is the most affordable neighborhood in Gilbert, with a median listing price of $295K.
Here are the best neighborhoods to invest in Gilbert rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Is Gilbert a Good Place to Invest in Real Estate?
Now that you know where Gilbert is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Gilbert rental real estate?
Many real estate investors have asked themselves if buying a rental property in Gilbert is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Gilbert housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Gilbert but we have collected ten evidence based positive things for those who are keen to invest in the Gilbert rental properties.
Investing in Gilbert rental properties will fetch you good returns in the long term as the home prices in Gilbert have been trending up year-over-year.
Let’s take a look at the number of positive things going on in the Gilbert real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Gilbert real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Diversified Economy
Suburbs like Scottsdale are more dependent on tourism, while other communities are reliant on a single industry or major employer. The Gilbert real estate market is buoyed by a number of high paying employers.
There are two massive health centers in the city. The city and the school district are major employers. There are several high tech employers like Go Daddy in the area. Distributors and retailers located here to be in proximity of Phoenix but with cheaper operating costs.
It is foretasted that Gilbert will become a net importer of Bio and Life Science jobs within the next 20 years. With the massive existing research and development activity, workforce, collaboration efforts, and already established bio and life science centers, Gilbert will be recognized as one of the regional and national leaders within this industry.
In the Aerospace and Defense sectors, Gilbert-based firms are excelling specifically in optics, satellites and FAA repair stations. The community includes Fortune 100 Lockheed Martin, who established in Gilbert its lead business unit for research, development and production of world-class electro-optics and smart munitions systems. It is also the only facility in the Lockheed portfolio that provides field support for lasers.
Many residents move to the Gilbert housing market to be close to the companies that result in the median household income hitting 90,000 dollars a year in 2016, 40K higher than the state average. In January 2019, WalletHub ranked Gilbert No. 39 best place to find a job out of 182 of the largest cities in the United States.
2. The Quality of Life
People rarely move cross-country for a better quality of life, but they will move to a safer community within reach of their current job. This is one reason why the Gilbert real estate market has exploded.
Gilbert was ranked the safest city in Arizona and the twenty-fifth safest city in the country by one publication. It has ranked high on multiple lists based on quality of life, including the quality of the schools. Gilbert is nationally recognized as one of the best places to live in.
Gilbert’s huge recreational centers provide a genuine quality of life that translates to a thriving and diverse community. Gilbert’s education system is par excellence. It has a nationally ranked K–12 system through the Gilbert and Chandler public school districts.
Students attending public school in Gilbert average better scores on the SAT and ACT than the state and national counterparts. Arizona State University (ASU) is a tier one research university with over 250 majors for undergraduate students, as well as over 100 graduate, professional and doctoral programs.
3.The Demographic Momentum
The long-term outlook for the Gilbert real estate market is strong. First, the area has grown several percent a year every year as people move here for work and quality of life. Second, the people moving here tend to be much younger than average.
The median age in Arizona is 38. In the Gilbert housing market, it is 33. There are many families here, and the economy means that many of their children will stay here.
4. Rental Property Investment is landlord friendly in Arizona
Arizona is landlord friendly, and it far better than neighboring California. There are strict laws regarding payment of rent and abiding by the terms of the lease, and the eviction process is incredibly smooth.
For example, you can terminate a lease with a written letter and ten days’ notice if someone lied on their rental application. And unlike California, the state has been becoming more property-owner friendly.
One example was the law changed so that you can enter the property without 2 days’ notice if the unit requires repair that was previously required.
The state is unusual for having late payment grace laws and limits on late fees for those who live in mobile homes but not for other types of rentals.
5. Gilbert – The Snowbird Market
Arizona sees a massive influx of “snowbirds” or winter residents, nearly all of them retirees. This has an interesting effect on the Gilbert real estate market. First, it creates a predictable and profitable seasonal winter rental market.
Second, it generates demand for low-maintenance properties like condos or manufactured housing. Third, these tenants have almost no demands beyond a clean, safe community. They’re more willing to live in a mobile home if it is affordable and has a parking space for their RV.
6. The Relatively Low Tax Burden on Real Estate
The tax burden in Arizona is relatively low. The state comes in 36 or 40 out of the 50 states based on the overall tax rate residents pay.
If you’re shopping for an investment property, know that you’d pay a roughly 0.65 to 0.70 percent property tax rate on the assessed value of the property. That puts Arizona in the bottom third of the country.
More importantly, a Gilbert real estate investment property has one of the lowest property tax rates in the state. They have the sixth lowest property tax burden of any city in the state of Arizona.
7. The Strong ROI of Gilbert Real Estate
We can’t say that the Gilbert real estate market is affordable. The median home price in the Gilbert housing market is a little over 300,000 dollars, whereas the median home price in Phoenix is roughly 240,000 dollars.
Instead, we would say that a Gilbert real estate investment has a strong return on the investment. The average rent on a single bedroom apartment in the Gilbert housing market was 1100 dollars a month, and this was 12 percent higher than rents in 2018.
Rental rates on two bedroom properties in the Gilbert real estate market were 1350 dollars a month, and that was a 11 percent increase over 2018 prices. Rental rates for single family Gilbert real estate investment properties are rising at a similar, double-digit rate.
And rental rates for single family homes are also high. For example, a three bedroom Gilbert real estate investment property is roughly 2000 dollars, while a four bedroom property commands 2250 dollars a month.
8. The Relative Affordability for Upscale Living
The Gilbert real estate market isn’t cheap. However, it is cheaper than the other “upscale” alternatives, explaining why the city has doubled in size every decade since 1990. For example, the rent on a Gilbert real estate investment property rent averages 1300 a month.
That’s a hundred a month below the rental rates in Tempe, and it is roughly 200 dollars a month less than posh Scottsdale.
9. The Impact of Geography
The value of a Gilbert real estate investment goes up at roughly 10 percent a year because of the impact of geography. First, the city borders Phoenix-Mesa Gateway Airport, preventing it from spreading further in that direction.
People also pay a premium to live here than drive farther on Highway 60 to Gold Canyon and Queen Valley.
Yet they can’t build much more to the south due to San Tan Mountain Regional Park and the Gila River Indian Reservation.
10. The Stable Gilbert Rental Real Estate Market
The Gilbert real estate market is a stable one. There are geographic constraints on potential expansion, so the only way they can develop new properties today is via more expensive redevelopment.
The high local incomes and family-friendly-by-design communities favor single family home construction when new properties are built. This has contributed to Gilbert’s 70 percent home ownership rate.
It also drives up rental rates for the few available rental homes and apartments. It will be years, too, before they start building high-density projects in Gilbert that have been spreading across Phoenix.
Gilbert Real Estate Investment 2020
Maybe you have done a bit of real estate investing in Gilbert, Arizona but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Gilbert real estate investment opportunity would be a key to your success. If you invest wisely in Gilbert rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Gilbert rental properties are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with. However, it is not easy to get that kind of a deal in Gilbert as it is among the most expensive real estate markets in the U.S.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Gilbert you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Gilbert, AZ. The Gilbert housing market is appreciating without overheating. It has relatively high property prices but even better rents.
The local regulatory climate favors landlords, and taxes are incredibly low. This makes the Gilbert housing market an excellent place to consider investing in real estate.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Gilbert real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
The other best place to invest in real estate is Fort Wayne, IN. Fort Wayne is a mid-sized city that has achieved a high standard of living, full employment and family-friendly communities.
This has led to steady population growth and strong property appreciation without becoming overheated. And these are good reasons to invest here over larger and hotter real estate markets. The Fort Wayne real estate market is affordable by both national and regional standards. The median home price in Indiana is around 180,000 dollars.
That’s below the national average of roughly 220K. However, the Fort Wayne housing market beats this. The average home in the Fort Wayne area is roughly 140,000 dollars.
Another fairly good market to choose for real estate investment is Greenville, SC. Greenville isn’t the largest, hottest or most expensive real estate market in the state.
However, it offers a slowly growing population, strong job market, diversified economy that guarantees growth and an easy point of entry for investors. Greenville, SC was ranked among best markets for seasonal investment in real estate in 2016.
According to HomeUnion, winter is the perfect time to acquire single family rental properties in markets like Jacksonville, Tampa and Greenville.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Snowbird Market https://www.tripsavvy.com/what-is-a-snowbird-2683049
Tax burden https://taxfoundation.org/state/arizona/ https://www.kiplinger.com/slideshow/taxes/T055-S001-arizona-cities-and-towns-ranked-for-taxes/index.html
About Gilbert https://en.wikipedia.org/wiki/Gilbert,_Arizona
ROI https://www.bestplaces.net/cost-of-living/phoenix-az/gilbert-az/70930 https://www.rentjungle.com/average-rent-in-gilbert-rent-trends/
The Relative Affordability for Upscale Living https://www.rentcafe.com/average-rent-market-trends/us/az/gilbert/
Stable rental market https://www.niche.com/places-to-live/gilbert-maricopa-az/ https://www.bizjournals.com/phoenix/news/2019/08/05/phoenix-high-rise-construction-slows-but-downtown.html
Market Prices, Trends & Forecasts https://www.zillow.com/Gilbert-az/home-values/ https://www.redfin.com/city/6998/AZ/Gilbert/housing-market https://www.realtor.com/realestateandhomes-search/Gilbert_AZ/overview https://www.movoto.com/gilbert-az/market-trends/ https://www.realtytrac.com/statsandtrends/az/maricopa-county/gilbert
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