Phoenix area distressed sales in 2012 compared to 2011

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

 

 

$499,900 :: 1036 E LODGEPOLE Drive, Gilbert AZ, 85298

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7 beds, 4 baths
Home size: 4,933 sq ft
Lot Size: 10,890 sq ft
Added: 04/17/19, Last Updated: 04/17/19
Property Type: Single Family
MLS Number: 5912654
Community: FELTY FARMS
Tract: FELTY FARMS
Status: Active


Need lots of space? This home features 7 bedrooms, 4 baths, loft, basement,and large rooms. There is a bedroom and full bath on the main level, two bedrooms and full bath on basement level, and 4 bedrooms, 2 baths upstairs. The home has large main floor laundry room and bonus room which could serve as an office with French doors to the front. The spacious back yard is just waiting for your landscape plan. This property needs some TLC and you can let your imagination soar to see the potential.

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/!


$370,000 :: 241 W BROOKS Street, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 2,243 sq ft
Lot Size: 6,969 sq ft
Added: 01/26/19, Last Updated: 04/15/19
Property Type: Single Family
MLS Number: 5873954
Community: RAVEN RANCH
Tract: RAVEN RANCH
The price of this listing was last reduced on 2/28/2019 by 1%
Status: Active


This beautiful single story home with pool a 3 car garage has it all! This home boasts 3 bedrooms plus a den that can be converted into a fourth bedroom. This home is an entertainers dream with built in speakers in formal living area, family room, master bedroom, office and back patio. The resort style backyard has a pool w/water feature, pavers, built-in gas grill and a built-in charcoal grill/smoker! Very private yard with north/south exposure. Side yard has a sidewalk leading from backyard to gate. 3 car garage with built in cabinets and an access door from garage to side yard. Laundry room has cabinetry and a sink.

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/!


$320,000 :: 43 W Patrick Street, Gilbert AZ, 85233

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4 beds, 2 baths
Home size: 1,884 sq ft
Lot Size: 7,405 sq ft
Added: 03/15/19, Last Updated: 04/12/19
Property Type: Single Family
MLS Number: 5893856
Community: Rancho Del Verde
Tract: Rancho Del Verde
Status: Active


Enjoy the perfect location with this home in Gilbert. Upgraded floors, white kitchen cabinets, granite tile counter tops and a large area for entertaining as well as a breakfast nook. Freshly painted exterior with a large corner lot! Only a mile away from the Gilbert Town Square and two miles from Downtown Gilbert. Still located within the Chandler Unified School District! Priced to Sell!

Listed with Century 21 Arizona Foothills


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


$397,900 :: 3524 E DERRINGER Way, Gilbert AZ, 85297

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5 beds, 3 baths
Home size: 3,348 sq ft
Lot Size: 10,890 sq ft
Added: 01/18/19, Last Updated: 04/10/19
Property Type: Single Family
MLS Number: 5869789
Community: SAN TAN RANCH PARCEL 3
Tract: SAN TAN RANCH PARCEL 3
The price of this listing was last reduced on 4/10/2019 by 2%
Status: Active


Make your move now by investing in this pristine 3,348 sq. ft. 2 story situated within a cul-de-sac of Gilbert's exclusive San Tan Ranch! Conventional eat-in kitchen boasting smooth granite countertops, electric oven, spacious walk-in pantry, dishwasher, and disposal. Spacious dining area, family room and upstairs master bedroom. Main bathroom features include coveted seperate walk-in shower, large immaculate bathtub, dual sinks, and cabinetry. Covered private backyard patio with an enticing pool surrounded by low maintenance desert landscaping. 3 car garage with the advantage of built-in cabinetry, electric opener, and direct entry from within home.

Listed with WEICHERT, REALTORS - Peak Performance


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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