Distressed Sales – What a year has done.

Last year buyers enjoyed a real estate buffet that served a combination of foreclosures/REO’s, short sales, or normal/traditional sales at historically low prices.  The inital buyer consultation included an explanation of the in’s and out’s of each.  Frustrated sellers knew they were competing with distressed sale pricing as they tried to obtain the highest price for their traditional sale that had seen years of declining value.  It was common for most valley cities to have a majority of the sales to be distressed foreclosure or short sale transactions.   Distressed sales as a percentage of total sales were above 80% for a couple of Phoenix valley cities! It was the exeception for a city to have less than 50% of total as distressed sales.  The chart on the left shows the percentage of sales by each category for May 2011 for each valley city.  As you know things change in real estate, so read on to see what has happened since last year.

Change in Phoenix foreclosure & short sales, comparing May 2011 to May 2012

The chart to the right shows the distressed sales(foreclosures & short sales) as a percentage of sales for the month of May 2012 for various cities.  Comparing this against the same chart from a year ago offers some good perspective regarding the trend we’ve seen since a year ago.

A couple of observations when comparing the two charts:

* The % of foreclosures/REO’s fell in every city, except for Sun Lakes. In some cases it was in excess of a 30% reduction of foreclosures.  Fewer homes are receiving foreclosure notice (notice of trustee sale) than in previous years.

* In most cities, the percentage of short sales as a % of total sales increased from 2011.  Banks see a short sale as a more favorable transaction than a foreclosure.  Some banks have starting contacting homeowners who are in default and not eligible for a loan modification offering them a relocation incentive to carry out a short sale.  Homeowners are also learning about the benefits of a short sale vs. a foreclosure which could account for the increase in the % of short sales from mid-2011 to mid-2012.

* The overwhelming trend is that distressed sales (foreclosures & short sales) are in decline and normal/traditional sales are gradually becoming the norm.  As prices increase, which they are doing, the % of short sales will  decrease.

Below is a table by city with the % of distressed sales for May 2011 and May 2012 with the third column being the decrease for each city.  Distressed sales are foreclosures and short sales.   Most all of the cities are seeing double digit decreases in the % of distressed sales for the last 12 months.

City                     2011 % distressed sales    2012 % distressed sales    decrease in distressed sales

Avondale                             86%                                        61%                                      -25%

Cave Creek                          54%                                        40%                                     -24%

Chandler                             63%                                         46%                                     -17%

El Mirage                            87%                                         58%                                     -29%

Fountain Hills                   36%                                         27%                                     –  9%

Gilbert                                 66%                                         42%                                     -24%

Gold Canyon                      44%                                         36%                                     –  8%

Laveen                                77%                                           67%                                     -10%

Maricopa city                    75%                                           49%                                    -26%

Mesa                                   66%                                           48%                                    -18%

Paradise Valley                 25%                                             9%                                     -16%

Queen Creek                      69%                                           41%                                    -28%

Scottsdale                          45%                                            26%                                    -19%

Sun Lakes                            8%                                            16%                                    + 8%

Tempe                                56%                                            45%                                     -11%

Tolleson                             87%                                            59%                                     -28%

This is very postive news, and comes as a surprise to many buyers that have been conditioned by the constant and unrelenting national news that  foreclosures are increasing and the continued downward real estate spiral.  Not in Phoenix.  Properly priced homes are now receiving multiple offers and the months supply of inventory is the lowest since 2005 for most cities in the valley, and homeowners can expect double digit appreciation for 2012.

If you have any questions regarding your property value or the trend in your neighborhood, please contact me at 480-326-8571.

Related Posts:

Where’s the real estate market going in 2012?

Keys to a succesful short sale listing

In search of a successful short sale purchase

Upcoming wave of Phoenix foreclosures?

 

Gilbert Foreclosures/REO’s

 

 

$280,000 :: 4339 E HARRISON Street, Gilbert AZ, 85295

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4 beds, 3 baths
Home size: 2,490 sq ft
Lot Size: 7,405 sq ft
Added: 10/19/17, Last Updated: 11/18/17
Property Type: Single Family
MLS Number: 5676200
Community: ASHLEY HEIGHTS
Tract: ASHLEY HEIGHTS
Status: Active


JUST BACK ON MARKET 11-18-17. Home with pool in Gilbert, upgraded 4 bedroom 3 bath with 2.5 car garage. One bedroom and full bathroom downstairs. Master bedroom with a sitting area and his/hers closets. Vaulted ceiling Situated on a corner lot. Wonderful fenced play pool in backyard. Much more. Needs Remodel Repairs - CASH OFFER PREFERRED.

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/!


$248,500 :: 647 E RANCH Road, Gilbert AZ, 85296

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3 beds, 2 baths
Home size: 1,655 sq ft
Lot Size: 6,534 sq ft
Added: 08/30/17, Last Updated: 11/18/17
Property Type: Single Family
MLS Number: 5653694
Community: NEELY FARMS UNIT 4
Tract: NEELY FARMS UNIT 4
The price of this listing was last reduced on 11/17/2017 by 90%
Status: Active


House has great potential in a highlydesired Gilbert community.3 bedroom great room plan with a pool.Pool has been drained and cleaned and is being filled.

Listed with Realty Executives 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/!


$339,900 :: 1406 N SADDLE Street, Gilbert AZ, 85233

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5 beds, 2.5 baths
Home size: 2,647 sq ft
Lot Size: 6,098 sq ft
Added: 11/16/17, Last Updated: 11/16/17
Property Type: Single Family
MLS Number: 5688734
Community: STONEHENGE - GILBERT
Tract: STONEHENGE - GILBERT
Status: Active


Great home in friendly and prime Gilbert location. This Home has it all 16'Tile, High Vaulted Ceilings in living room and formal dining room. Big family room w/ built in fire place and an open floor plan. Kitchen is very open with large island perfect for entertaining. Home is very inviting with 5 spacious bedrooms. Large backyard and with a pebble tech pool. Backyard is perfect for family gatherings and barbecues. To add to this gorgeous home property is located near the us-60 freeway and is Walking Distance to Restaurants, Shopping & Movie Theaters. Not only is this home perfect for a growing family but property is priced to sell.

Listed with Homesmart


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


$309,000 :: 4128 E WALNUT Road, Gilbert AZ, 85298

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3 beds, 3 baths
Home size: 1,945 sq ft
Lot Size: 7,840 sq ft
Added: 06/06/17, Last Updated: 11/15/17
Property Type: Single Family
MLS Number: 5615901
Community: TRILOGY AT POWER RANCH 2
Tract: TRILOGY AT POWER RANCH 2
The price of this listing was last reduced on 9/25/2017 by 3%
Status: Active


Trilogy home with guest casita and private pool. This home has 2 bedrooms plus den and 2 baths in the main house and a bedroom and bath in the guest casita. Some of the many features of this home include 2 fireplaces (one inside, one out), open and bright floor plan, high ceilings, spacious eat-in kitchen with gas cooktop, wall ovens and lots of cabinets, master suite with bay window and french door to patio. The exterior features solar heated pool, full covered patio, room for a spa and BBQ, and an adobe fireplace on front patio between the main house and guest casita. Freshly painted and new carpet. Trilogy is a 55+ active adult community with outstanding ammenities. Come see this one today!

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/!


$315,000 :: 2971 E Sherri Court, Gilbert AZ, 85296

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5 beds, 2.75 baths
Home size: 2,827 sq ft
Lot Size: 7,840 sq ft
Added: 08/26/17, Last Updated: 11/08/17
Property Type: Single Family
MLS Number: 5652057
Community: Rancho Corona
Tract: Rancho Corona
The price of this listing was last reduced on 10/11/2017 by 4%
Status: Active


An absolute gem in Gilbert, this home boasts amenities galore!!! Located in the Rancho Corona neighborhood with green belts and pocket parks throughout, this lovely large family home brings resort life to the backyard with a pebble-tec play pool, rock waterfall and tons of cool-dec. This open floor plan offers a gourmet kitchen with island, cooktop, built-in microwave and a dream pantry. The master suite is a true retreat with a spacious bedroom, attached sitting/workout room and great dual sink, bathroom with his and her walk-in closets. And kidsno worries, walk-in closets for each of the 3 additional bedrooms as well! And of course, there is shopping, business offices and easy freeway access to malls, restaurants and more.Please verify any information .

Listed with #1 National Real Estate Network LLC


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


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