East Valley home construction surges; Gilbert sees biggest spike – East Valley Tribune: East Valley Local News
The new homes are desperately needed, said Bill Salvatore, an agent at a Gilbert Realty Executives office.
He’s helping a young couple buy their first home and said they bid on a house that got six other offers after a single day on the market. That scenario has been happening for months.
“We can’t get resale homes,” Salvatore said. “They’re getting scooped up so fast.”
Many buyers are surprised after years of grim news about plummeting home values and then predictions of a shadow inventory of foreclosed homes that would further damage the market, he said.
He prepares buyers by sharing housing numbers. About 50,000 homes were for sale a year ago in the Valley, which was an 11-month inventory based on an average of 4,000 sales a month. Just 14,000 homes are listed now with monthly sales up to 7,000. That’s a two-month supply.
Salvatore has seen many first-time buyers recently. They’re excited about buying a home for less than they’re paying in rent and are open to living farther out despite gas prices of about $4 a gallon.
He expects a 10 percent increase in property values by the fall because of all the bidding wars he’s seen.
“It’s 2005 all over again,” Salvatore said.
