Phoenix real estate market update for 2011

I found the following quote by Franklin D. Roosevelt, “There are as many opinions as there are experts.” Speculating on real estate trends is a favorite past time for anyone, especially as of late. It is easy to get caught up in the broad “one size fits all” real estate commentaries, so read on to see what’s really happening with Phoenix area real estate. To truly understand, it is always best to look at the data and identify trends.

Let first start with demand

The above chart  shows the single family sales per month for Gilbert for almost  2.5 years.  The pink line is for 2011.  Other cities and towns around the valley show a similar pattern.  Chandler sales are shown on the right for more than over 2 years.   In most cities, you have to go back to 2005 to find higher number of YTD sales.  Obviously, the significant drop in prices have spurred demand for lower cost and affordable housing, both from investors and owner occupants.

What’s happening to inventory

Within the last month, I’ve had clients comment that there aren’t as many listings showing up, especially if they’re looking for a niche property such as Phoenix waterfront property.   To the left is a graph for the Queen Creek area, which was hit particularly hard with foreclosures since many of the homes were built during the boom.   All three types of listings have decreased over the last year.  Understandably, buyers had come to expect a continual supply of rock bottom priced foreclosures, but the trend appears to suggest reduced supply for traditional sales, short sales and foreclosures, not just in Queen Creek but across the Phoenix valley.

There are many reasons why the  foreclosures have begun to decrease and should continue. Mortgage delinquency rates are down, bankruptcies have peaked and there is a sustained downward trend in the number of notices of trustee sales per day for Maricopa county.  Notices of trustee sales are issued when a homeowner becomes sufficiently delinquent that the lender notifies the owner that the house will be sold in 90 days at trustee auction, and the property is now in pre-foreclosure status. The number of notices of trustee sales peaked in April 2009 and has shown a sustained and welcome downward trend.  With fewer properties going into pre-foreclosure, fewer will become lender owned foreclosures, reducing downward pressure on prices. It is also worth mentioning that there is a distinct difference between the foreclosure process in “judicial” vs. “non-judicial” states. In states like Illinois with a judicial foreclosure, the process is much longer, even years, delaying the process for homes to return to the market.  Arizona, a non-judicial foreclosure state is based on deeds of trust with a power of sale clause which enables the trustee to initiate the foreclosure process without having to go to court.

Days of Supply of Inventory

A good way to compare demand to supply is to look at the available days of inventory. In other words, based on the current sales, the inventory will be gone in “X” days unless more inventory is added.  Above is a chart showing the days inventory supply for Tempe.  Other days of supply graph show similar trends.

The data shows positive trends for many aspects of Phoenix valley real estate.  Regardless of what many distant and removed commentators say about our real estate, we know real estate is local which is why is it important to focus on the leading indicators for those that affect Phoenix and the surrounding cities.  We should see price stabilization this year and some cities will even begin to see price appreciation.

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$249,900 :: 576 S HERITAGE Drive, Gilbert AZ, 85296

Property Photo

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3 beds, 2 baths
Home size: 1,544 sq ft
Lot Size: 8,276 sq ft
Added: 02/15/18, Last Updated: 02/16/18
Property Type: Single Family
MLS Number: 5724239
Community: MIRADOR ESTATES AMENDED
Tract: MIRADOR ESTATES AMENDED
Status: Active


Looking for a new place for you and your family? Then this beautiful 3+ bed, 2 bath property now for sale in Gilbert is just for you! Featuring desert landscaping, 2 car garage with built-in cabinets, dining and living area, and neutral paint, you simply have to come see it for yourself! The fabulous kitchen offers ample cabinet and counter space, a pantry, recessed lighting, and lovely matching appliances. Inside the beautiful master bedroom you will find a full bath as well as a spacious closet. The stunning backyard boasts tons of space along with a cozy covered patio, paved seating area, and a ramada with a bar! The good ones never last, don't waste any time and schedule a showing today!

Listed with Delex Realty


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$242,500 :: 704 E MEGAN Street, Chandler AZ, 85225

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3 beds, 2 baths
Home size: 1,340 sq ft
Lot Size: 6,534 sq ft
Added: 11/08/17, Last Updated: 01/26/18
Property Type: Single Family
MLS Number: 5685262
Community: RAY MANOR AMD
Tract: RAY MANOR AMD
The price of this listing was last reduced on 1/17/2018 by 1%
Status: Active


Great location in Chander's Ray Manor community. Close to both Chandler & Gilbert's downtown districts for entertainment. This home features 3 bedrooms, 2 baths and a large backyard with POOL. Covered north facing patio for ideal shade year round. This house Features a full solar system lease thats fixed for life. (no escalating fees) Save money every month.

Listed with Realty ONE Group


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$240,000 :: 861 S ITHICA Street, Chandler AZ, 85225

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3 beds, 2 baths
Home size: 1,625 sq ft
Lot Size: 7,405 sq ft
Added: 12/14/17, Last Updated: 01/10/18
Property Type: Single Family
MLS Number: 5698667
Community: MONTEREY VISTA
Tract: MONTEREY VISTA
Status: Active


Great Value in the heart of Chandler close to freeways and Chandler Gilbert Community College! This 3 bedroom, 2 bathroom home is close to everything. Features include 2 car garage, vaulted ceilings, formal living- room and a family room. The kitchen has ample cabinet space and a breakfast bar. The master bedroom is located to the back of the home away from possible street noise and offers a full bath with double sink, separate tub & shower. Some repairs are needed, but this is the lowest price per sqft of all similar homes on the market.

Listed with Keller Williams Realty East Valley


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$239,900 :: 250 W JUNIPER Avenue #45, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 1,730 sq ft
Lot Size: 5,227 sq ft
Added: 11/01/17, Last Updated: 11/15/17
Property Type: Single Family
MLS Number: 5681875
Community: DESERT WINDS
Tract: DESERT WINDS
Status: Active


INVESTMENT OPPORTUNITY. RENTED TO 8/31/2018 AT $1200 PER MONTH. CLOSE TO DOWNTOWN GILBERT RESTAURANTS AND BARS.NICE 3 BEDROOM 2 1/2 BATH HOME WITH BEAUTIFUL BACKYARD. CEILING FANS THROUGHOUT. TILE AND WOOD BLINDS IN KITCHEN. PRETTY 2 WAY FIREPLACE IN LIV ROOM AND FAM RM WITH BLACK FAUX PAINTED TILE. REFRIG/WASHER/DRYER INCLUDED.

Listed with Realty Executives


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


Gilbert and Chandler Short Sale Information