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



$209,900 :: 133 E LAUREL Avenue, Gilbert AZ, 85234

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3 beds, 2 baths
Home size: 1,331 sq ft
Lot Size: 6,534 sq ft
Added: 09/16/17, Last Updated: 09/16/17
Property Type: Single Family
MLS Number: 5661266
Community: VILLAGE 2 LOT 90-225 & TR
Tract: VILLAGE 2 LOT 90-225 & TR
Status: Active

Light and Bright 3 bed 2 bath home with a Great Room and charming brick fireplace with a formal living room as well. Open Roomy eat in Kitchen loaded with cabinets and large pantry. Enjoy the very private backyard pool, large covered patio and storage shed. Walking distance to Old Town Gilbert. HOME BEING SOLD AS IS WHERE IS. BUYER TO VERIFY ALL INFORMATION DEEMED IMPORTANT.

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/!

$449,900 :: 3451 E ORLEANS Drive, Gilbert AZ, 85298

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3 beds, 3.5 baths
Home size: 2,843 sq ft
Lot Size: 9,583 sq ft
Added: 05/13/17, Last Updated: 09/05/17
Property Type: Single Family
MLS Number: 5605108
The price of this listing was last reduced on 7/31/2017 by 1%
Status: Active

Spectacular 3 bed, 3.5 bath home with spacious floorplan. Enter and note the gorgeous wood look flooring and plantation shutters throughout. Open kitchen sports tons of cabinetry, granite counters and oversized island with breakfast bar, perfect for whipping up all your favorite recipes. Bonus room can be turned into an office, or den. One of the spare bedrooms has its own attached bath and private entrance. Large master with en suite bath featuring double sinks, soaking tub, separate shower and generous walk-in closet. Versatile backyard, whether it's a cook out with the covered patio and built-in BBQ, to just relaxing alone in the heated spa or practicing your stroke in the putting green. Come see 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/!

$269,900 :: 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: 09/01/17
Property Type: Single Family
MLS Number: 5653694
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/!

$344,900 :: 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: 08/26/17
Property Type: Single Family
MLS Number: 5652057
Community: Rancho Corona
Tract: Rancho Corona
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/!