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



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4 beds, 3 baths
Home size: 2,143 sq ft
Lot Size: 6,098 sq ft
Added: 05/26/18, Last Updated: 05/26/18
Property Type: Single Family
MLS Number: 5771864
Status: Active

Beautiful two story home in Gilbert! Open concept floorplan with panoramic windows throughout. Kitchen opens to the living room and has center island with breakfast bar, granite counters, and black appliances. Large loft with ceiling fan at top of stairs! Master retreat has plush carpeting and a spacious walk in closet. Full spa bathroom with dual sink vanity and separate soaking tub + shower. Backyard features an extended covered patio with pavers and plenty of room for entertaining. This home is sure to go fast, so come see it today!

Listed with Revelation Real Estate

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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4 beds, 2 baths
Home size: 2,357 sq ft
Lot Size: 7,840 sq ft
Added: 05/23/18, Last Updated: 05/23/18
Property Type: Single Family
MLS Number: 5769810
Status: Active

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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/!

$260,000 :: 4072 S SHADY Court, Gilbert AZ, 85297

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3 beds, 2 baths
Home size: 1,428 sq ft
Lot Size: 7,405 sq ft
Added: 05/18/18, Last Updated: 05/18/18
Property Type: Single Family
MLS Number: 5768313
Status: Active

Single level 3 BR/2BA home on a quiet Power Ranch cul-de-sac. Great room floor plan. Grass yard and green belt. Close walking distance to elementary school and community park areas. Miles of walking/hiking trails and community/recreational amenities in Power Ranch. OWNED solar panels, water softener and RO systems.

Listed with Keller Williams Northern AZ

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

$359,900 :: 983 N SUNNYVALE Avenue, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 2,375 sq ft
Lot Size: 13,939 sq ft
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Property Type: Single Family
MLS Number: 5754963
The price of this listing was last reduced on 5/18/2018 by 5%
Status: Active

4 bedroom/3 bath home in Kristin Manor on huge cul-de-sac lot. Conveniently located near US-60 and Loop 202. Home features include vaulted ceilings, 3 car garage with cabinets, huge master suite with his & her closets, double sinks and jacuzzi tub, full downstairs bed & bath, tile floors, ceiling fans, open kitchen with island and large pantry, covered patio and wood blinds. This remarkable property is available for immediate sale. The seller is very responsive and the property is a perfect opportunity for all buyer types.

Listed with American Allstar 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/!

$267,650 :: 916 W SILVER CREEK Road, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 1,511 sq ft
Lot Size: 5,227 sq ft
Added: 04/26/18, Last Updated: 04/26/18
Property Type: Single Family
MLS Number: 5757053
Community: DAVE BROWN UNIT 5
Status: Active

Bright and open single story home on a nice lot with mature shade trees.Property features 3 bedrooms, 2 baths, a nice open kitchen with casual diningand a bay window, and a large living room with fireplace. The home could use a little updating but would be a real gem with a little work.

Listed with Real Home Services & Solutions

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