What’s happening with the new construction? Listening to the news, you are wondering what is going on! Yes, there is a massive slowdown in real estate. But what does that mean to you? What about new construction?
Buying new construction over the last few years has been almost impossible. Waiting lists, drawings, minimal choices, and if you were drawn in the raffle or waiting list, you had no idea what the prices would be at that point you drew, with all the price increases. That is changing. There are now houses in Gilbert, AZ, available.
The waiting lists are gone. Now the builders are paying seller-paid concessions to buy down the interest rates and having sales with free upgrades.
The new construction supply is slowing down. There has been a 49% decrease in building permits from March to July 2022. During the same period, the Days on the Market it takes to sell a resale home has increased from 7 to 33 days. You see a lot of price decreases. But this is mostly sellers moving prices down where they should have been originally. (Concession Photo) Concessions have jumped from 3.2% to 16.1% since February. (Sales Price List Price Ratio Photo) The average list/sales price ratio was 101.7% on May 22. That means homes were selling 1.7% over the list price. It is down to 97.7% on September 22. Prices are still up from September 2021 by 7.3% but down 8.1% since May 2022. This is especially true for homes at the lower end of the value range, especially homes under $300,000. It’s affecting the homes with the highest price increases first, and there have been crazy increases, and those that are affected by the interest rate increases. But the future does look bright. 45 big companies are moving here. Arizona is ranked #2 in employment growth with a 1.5% change.
September – October is typically the best time for buyers. There is less competition and more choices. The price is the same whether you go directly to the builder or work with an agent.
So what is the advantage of using an agent?
First, we can start by comparing resale homes to new homes in the area, seeing areas you may not have considered. Builders are reaching out to us every week. We may know unadvertised specials, help compare lenders, and set up inspections. That’s right, inspections. Most people think it is not necessary to do a home inspection on a new home. But I can tell you it is very advisable. I remember one house where they missed putting the insulation in the attic. Things can be missed when so many houses are being built so quickly. We can be your boots on the ground. Remember, the builder represents, we represent you! Without representation, the builder can avoid everything. If problems come up, you have the brokerage behind you. They do many deals with our brokerage and want to keep a strong relationship with the broker, which is helpful to the buyer.
It is Healthy when you can compare and choose. We also do the Following up with the lender, the title company, and the builder, making sure everything gets done. We can help you with all of this and introduce you to subdivisions that you did not know about, tell you about sales you did not hear about, and represent you! But first, you have to call. I need to find out what you do and don’t like so I can recommend areas. And we can’t help unless you call. Call/text, our contact information is listed below. And don’t forget that when you sign in at the builder’s office, ensure they know you are working with us.
Examples of new construction in Gilbert
Today, let’s start in the Morrison Ranch area. South of Elliot on the west of Recker Roads. The area has mature trees and white-picket fences. It is a 3000-acre master-planned community. You will find the Morrison Ranch Business Center. It is a 275-acre business and technology complex. The ASU East and Chandler-Gilbert Community College are just 2 miles away. Then there are the stores, the lake, and the park to bring you tranquility. You will find great support facilities with the stores and schools you need right in the area. And the four silos remain in the park. This is in the final neighborhood in Morrison Ranch and Lakeview area, Here, you will find the tree-lined streets. Front porches with farmhouse, cottage, and modern designs.
There are both one and two-story homes. They range from 2995 – 4995 one and two-story homes and 3487 sf houses for $1,449,995. Only 4 vacant lots and 4 specs left. Toll Brothers at Flora Morrison Ranch – 3940 E Bloomfield Pkwy, Gilbert AZ
Camelot Homes was also in the area but just sold out. Then there is another builder coming very soon. NE corner of Recker and Warner.
Warner Meadows – The common facilities will include pool, outdoor kitchen, greenbelt and a firepit with 4 Collections.
- 1953 sf, 5 bedroom, 3 baths $585,000 – 1 Story
- 2608 sf 4 bedroom 3 bath 2-sotry $555,000
- 2192 sf 4 bedroom 3 bath 1-story for $637,000
The Towns – 1194-1921 sf , 2-3 bedrooms from the low $400,000
I hope this gives you a feel of what is happening with new construction in the area especially if you are considering moving to Arizona of looking at Gilbert Real Estate. Those closer in town, like we looked at today, have very few lots left. You will have commute further to get into a new home, if you miss these. Feel free to reach out if you would like more information at 480-226-1925.