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

 

 

$309,500 :: 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: 02/16/18
Property Type: Single Family
MLS Number: 5688734
Community: STONEHENGE - GILBERT
Tract: STONEHENGE - GILBERT
The price of this listing was last reduced on 1/27/2018 by 0%
Status: Active


ALL OFFERS CONSIDERED. NEED TO BE UNDER CONTRACT BY 1/12/18!! 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/!


$615,000 :: 5380 S PEACHWOOD Drive, Gilbert AZ, 85298

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2 beds, 2.5 baths
Home size: 2,405 sq ft
Lot Size: 7,405 sq ft
Added: 02/11/18, Last Updated: 02/11/18
Property Type: Single Family
MLS Number: 5722230
Community: TRILOGY UNIT 8 PHASE B
Tract: TRILOGY UNIT 8 PHASE B
Status: Active


Elegant and upgrades Hermosa model located on the 5th fairway in the active adult community of Trilogy at Power Ranch. This home is luxurious and spectacular in every way. The entertainment kitchen has granite counter top, upgraded cabinets, stainless steel appliances, has a large breakfast bar with pendant lighting.Adjacent to the kitchen is a large sitting area that can be used as a dining area with wonderful views of the backyard and the golf course. The patio/backyard is a resort, private putting green/gas fireplace with setting area. There is a built-in barbeque that you can entertain in the summer with a misting system/fans and then in our winter you can turn on the heater. All of this along with everything done in flagstone. This home is a must see!

Listed with Coldwell Banker Residential Brokerage


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 :: 4532 E Douglas Avenue, Gilbert AZ, 85234

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3 beds, 2 baths
Home size: 1,725 sq ft
Lot Size: 6,534 sq ft
Added: 02/09/18, Last Updated: 02/10/18
Property Type: Single Family
MLS Number: 5721773
Community: Towne Meadows
Tract: Towne Meadows
Status: Active


Location, location, location. Walking distance from high ranking Town Meadows elementary school, close proximity to Town Meadows HOA park. This corporate-owned property features wood blind shutters, fireplace in the family room, formal living room, master bedroom has separate exit to patio. Backyard has a lemon tree with tons of lemons. This is corporate owned property and sold as-is with no seller warranties or repairs. Buyer to verify whether on septic or sewer and other material facts as it is bank owned.

Listed with West USA 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/!


$254,900 :: 191 W SMOKE TREE Road, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 1,670 sq ft
Lot Size: 4,791 sq ft
Added: 01/31/18, Last Updated: 01/31/18
Property Type: Single Family
MLS Number: 5716733
Community: PARCEL 10 OF LAGO ESTANCIA
Tract: PARCEL 10 OF LAGO ESTANCIA
Status: Active


Charming 3 bedroom 2 bath home in great Gilbert location close to historic downtown Gilbert, restaurants and shopping and just minutes from the 60 and 202 freeway. Home features a formal living/dining room, bright open kitchen open to family room with french doors leading to the covered patio, master suite with private bath and walk in closet and so much more all within the beautiful Lago Estancia lake community. Buyer to verify any and all items that are of material issue.

Listed with Legion 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/!


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