Phoenix Real Estate Market Update for 2012

 Reflecting on 2012 and what’s ahead for 2013

There is no doubt, 2012 has rewarded home owners, to which they say it is about  time!  Some reports are indicating a 15% – 25% increase in home values over  the last 12 months. The graph to the left shows the average $/sq.ft. for homes sold in Gilbert,  which has  rebounded to pre-2009 levels.  Can we expect this favorable trend to continue in 2013, or is this another bubble that will burst in 2013? They tell me I’m an analytic which probably explains why  I’ve included charts and graphs to explain my reasoning, so read on.

What’s happening with distressed properties?

To gain a better  understanding of the market, it is critical to understand the market for distressed properties. I like this graph to the right because it shows the pending foreclosures over time.  The  decrease which began in 2010 and accelerated in 2011, shows  why foreclosures have seen a significant reduction during 2012. It is very likely that it will fall below year-end 2007 levels by the end of this year.  Pending foreclosures are the fuel for the foreclosures/short sale pipeline so this trend shows that the real estate market is heading towards normalcy.

The specific impact of the reduction in distressed sales can be seen in the graph to the left which shows the percentage of distressed sales by city broken down by foreclosures and short sales.   To appreciate where we’re at, we must look back a year ago.  Nearly all cities have experienced a double digit reduction in  the percentage of distressed sales from a year ago.  Instead of torturing you with another graph, I’ll give you the  summary.

 

City               %Distressed Sept. 2011     %Distr.Sept. 2012             Change

Gilbert                             61%                               38%                         -23%

Chandler                         61%                               38%                         -23%

Mesa                                66%                               42%                         -24%

Queen Creek                  65%                                36%                         -29%

Scottsdale                      44%                                 27%                         -17%

Surprise                          73%                                 49%                        -24%

This is over a 12 month period which equates to a 2% decrease per month in many areas.   Distressed sales, foreclosures and short sales, will still be around for a while but the trend continues to be extremely encouraging.

What happens when home values rise?

As distressed properties (foreclosures and short sales) are decreasing and home values are rising, this is welcome news to  underwater home owners .  Before, these home owners could not voluntarily sell their homes.  Rising home values provide the opportunity for more owners to participate in a traditional sale which allows more homes to come on the market.  Since the 3rd quarter of 2011, the increase in prices has been driven by the lack of supply of homes for sale. In order to view the balance between supply and demand we must refer to, you guessed it another graph! The months of inventory graph to the right shows that balance between supply and demand.  A rise in the available homes for sale with constant demand  increases the months of supply because it takes longer for that demand to consume the supply.  We are already seeing an increase in the months supply in many cities which means that as prices increase and more homes come on the market, it will take longer for homes to sell and the rate of increase in prices will slow down.  A six month supply of homes is consider normal so our market is still very healthy but an update trend indicates a cooling off.

One of the hottest market segments has been lower priced homes that can be purchased and rented out with immediate cash flow offering a significantly better rate of return than other investment alternatives.   As prices increase, the ROI comes down and a point will come where the reduced return does not justify the investment and investors will be leaving  the market.

As the Phoenix housing market returns to what may be close to a normal market, prices will continue to increase but will be moderated by an increase in the supply of  homes.  Phoenix was one of the first markets hit by the bubble so the fact that we’re one of the first ones out should not be a surprise.  Foreclosures and short sales will continue to be part of the equation but a smaller percentage.  Look for continued appreciation in 2013 but not the frenzied price recovery that we’ve seen in 2012.

Your thoughts?

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Related Posts:

Distressed Sales in 2012 compared to 2011

Where’s the  Phoenix market going in 2012?

Luxury Waterfront Property in Phoenix

$206,000 :: 6712 S CYPRESS POINT Drive, Chandler AZ, 85249

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2 beds, 2 baths
Home size: 969 sq ft
Lot Size: 3,485 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955574
Community: SUNBIRD UNIT NINE
Tract: SUNBIRD UNIT NINE
Status: Active


Beautiful 2Bedrooms and 2 Baths house located in the great adult community. Community amenities include 18 hole golf course, tennis courts, pool/spa, billiards, table, and much more.

Listed with Gold Coast 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/!


$579,500 :: 2649 E CEDAR Place, Chandler AZ, 85249

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7 beds, 5.5 baths
Home size: 5,286 sq ft
Lot Size: 12,197 sq ft
Added: 05/17/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5927307
Community: RIGGS RANCH MEADOWS
Tract: RIGGS RANCH MEADOWS
The price of this listing was last reduced on 6/29/2019 by 0%
Status: Conditional


Rare 7 bedrooms and 5.5 baths boasting almost 5300 sq. ft. of living space ready to sell! The large eat-in kitchen has beautiful granite counters, large island, a reverse osmosis system and a walk-in pantry. This lovely home has travertine tile, a great room, a separate living room, and a multipurpose room that can be used for formal dining, a craft room, a music or movie room or any number of other uses. Four of the seven bedrooms have private baths. The downstairs bedroom suite has a sitting room, a coffee bar, and a separate ac unit for those that like it cold at night. The 4-car garage is wired for 220V and has plenty of room for your cars and a shop. The backyard has a refreshing saltwater pool, a covered patio and plenty of room to be creative! Riggs Ranch Meadows features

Listed with Allyn & Associates


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


$350,000 :: 2954 E PATRICK Street, Gilbert AZ, 85295

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3 beds, 2.5 baths
Home size: 1,975 sq ft
Lot Size: 6,099 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955553
Community: LYONS GATE PHASE 3 AND 4
Tract: LYONS GATE PHASE 3 AND 4
Status: Active


Immaculate 3 bedroom + den, 2.5 bath Gilbert home in the Desirable Lyon's Gate. Beautiful interior features modern stained flooring throughout home with open floor plan. The kitchen has granite counter tops, energy star appliances, kitchen island with breakfast bar, walk-in pantry and upgraded cabinets. Master bedroom features separate tub and shower, dual sinks and walk-in closet. Home is very energy efficient with Seer 16 A/C unit, double paned vinyl windows, spray foam insulation in the walls and attic and solar panels. Plenty of storage throughout the house. Community amenities include: 3 community pools, basketball court, sand volleyball, playgrounds, greenbelts, all included in the low HOA monthly fees.

Listed with Shadow Hawk Realty, 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/!


$319,900 :: 6631 S GRANITE Drive, Chandler AZ, 85249

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3 beds, 2 baths
Home size: 1,680 sq ft
Lot Size: 6,970 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955566
Community: SPRINGFIELD LAKES BLOCK 3
Tract: SPRINGFIELD LAKES BLOCK 3
Status: Active


2 bed, 2 bath, Daybreak model with split bedroom floor plan and large den. Features include kitchen island, spacious eat in dining nook, 16 inch tile throughout, plantations shutters, kitchen that overlooks the great room, built-in garage cabinets, private extended covered patio. Community features a great community building with a library, work out room, pool tables, ball room. The grounds also have a couple pools, outdoor covered patio with seating for get-togethers, and a bar-b-que.

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/!


$687,000 :: 1236 W EDGEWATER Drive, Gilbert AZ, 85233

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5 beds, 3.5 baths
Home size: 4,242 sq ft
Lot Size: 9,148 sq ft
Added: 02/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5887260
Community: CATALINA BAY AT THE ISLANDS UNIT 4
Tract: CATALINA BAY AT THE ISLANDS UNIT 4
The price of this listing was last reduced on 7/22/2019 by 1%
Status: Active


New Paint through the entire house! Seller is also providing a One Year Ultimate Warranty on the home and pool. Pre-purchased and will be transferred to the new owner! This home sits at the center of all five ''fingers'' that make up Lake 2! It's on the most coveted/primary lot on the water. This Beautiful, Resort-Style Living Home has views from every window. 4200 sq ft, 5 bedrooms and a built-out office/man cave with a separate entrance. The 3 car garage has fresh epoxy floors. The master closet is built-out with sophisticated shelving. Most ceilings boast crown molding. You name it - this house offers it!

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/!


$262,500 :: 2081 E RANCH Court, Gilbert AZ, 85296

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3 beds, 2 baths
Home size: 1,219 sq ft
Lot Size: 6,099 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955548
Community: COTTONWOODS CROSSING UNIT 1
Tract: COTTONWOODS CROSSING UNIT 1
Status: Active


This beautiful home is located on a Cul De Sac Street near the Community Greenbelt, Playground and Walkways.3bedrooms and 2 full bathrooms, Great Room, Kitchen with spacious pantry. Grassy backyard with Gazebo and plenty of space to enjoy. This is a great starter home having 2 Car garage and RV Gate. Near Restaurants and Shopping, 5 Miles From the Mercy Gilbert Hospital, Near Mesa Gateway Airport.

Listed with Occasio 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/!


$474,990 :: 3698 E JUDE Lane, Gilbert AZ, 85298

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5 beds, 4.5 baths
Home size: 3,450 sq ft
Lot Size: 7,406 sq ft
Added: 05/10/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5923808
Community: BRIDGES EAST PARCEL 3-6
Tract: BRIDGES EAST PARCEL 3-6
The price of this listing was last reduced on 7/22/2019 by 0%
Status: Active


Gorgeous, like new home located in the coveted Bridges neighborhood of Gilbert. Custom tile leads you through the dramatic 2-story entry into the gourmet kitchen with upgraded cabinets, dual ovens, smooth-top range and granite counter tops. Behind the 2-story spacious family room is a den and a work station with built in cabinets. The first floor features the homes 5th bedroom with private entry and en-suite bath, perfect for guests or an in-law suite. Upstairs boasts a large loft, built-in homework desk, beautiful master suite and 3 bedrooms, 2 of which share a jack and jill bathroom and the third with its own full bathroom. This amazing home sits on a premium lot that backs to a landscaped open space with walking trails. **Price Reduced**

Listed with Realty USA Southwest


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


$389,000 :: 1272 W BARTLETT Way, Chandler AZ, 85248

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4 beds, 2 baths
Home size: 1,901 sq ft
Lot Size: 9,148 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955516
Community: OCOTILLO LAKES PARCEL E
Tract: OCOTILLO LAKES PARCEL E
Status: Active


Beautiful and well maintained home in the quiet subdivision of Ocotillo Lakes. Close to Chandler Traditional Academy. N/S facing on a corner lot with side entry garage.Tastefully decorated with a resort style backyard for entertaining, complete with heated pebble tech pool/waterfall, covered patio and RV gate. Home is a must see with fresh interior paint, new flooring and light fixtures, stainless steel appliances, double sinks in master bathroom,walk-in closet and so much more. Close to shopping, freeways, restaurants, Chandler Academy and other schools. Lake subdivision with sidewalks and beautiful greenbelt areas.

Listed with Occasio 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/!


$359,000 :: 2922 E ELEANA Lane, Gilbert AZ, 85298

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3 beds, 2 baths
Home size: 1,964 sq ft
Lot Size: 8,277 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955528
Community: SHAMROCK ESTATES PHASE 2B
Tract: SHAMROCK ESTATES PHASE 2B
Status: Active


This gorgeous, remodeled, Taylor Morrison home in Shamrock Estates has 20'' tile throughout, beautifully finished cabinetry, stunning granite counter tops, newly painted interior and exterior, low-maintenance, landscaping design, extended patio and walkways in backyard, split floor plan, private covered entry and inviting foyer welcomes you to your new home. Step into your dream kitchen with stainless steel appliances, walk-in pantry and huge island with breakfast bar, large eat in kitchen and great room, with views and access to the beautifully landscaped backyard, make this home perfect for entertaining. Master suite with full master bathroom, separate tub and shower, double sinks and walk in closet, backyard entry will be the perfect retreat for you. Close to shopping, entertainment,

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/!


$310,000 :: 1068 N SAGUARO Street, Chandler AZ, 85224

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3 beds, 2 baths
Home size: 1,587 sq ft
Lot Size: 4,792 sq ft
Added: 07/22/19, Last Updated: 07/22/19
Property Type: Single Family
MLS Number: 5955541
Community: HAMILTON HOMES 2 AT ANDERSEN SPRINGS 1-125 TR A-J
Tract: HAMILTON HOMES 2 AT ANDERSEN SPRINGS 1-125 TR A-J
Status: Active


Beautiful single level home Chandler home is officially on the market! Gorgeous interior offers vaulted ceilings that makes entertaining a breeze, fireplace in the living room, 3 bed, 2 bath, designer paint, and plantation shutters throughout, recently installed porcelain tile throughout the living space. The kitchen boasts a center island w/breakfast bar, pantry, stainless steel appliances, plenty of cherry cabinets, & tile back-splash. Split master retreat has sliding door that opens to backyard, walk-in closet & lavish bath with jetted tub, vessel sink in vanity & stone accented shower. The lovely backyard is perfect for spending the day with friends and family complete w/ pavered sitting area, artificial turf & pergola! Located in the heart of Chandler, this home is sure to go fast!

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/!


 

 

 

 

One Reply to “Phoenix Real Estate Market Update for 2012”

  1. Gordon,

    Discovered your site while surfing national waterfront homes websites. Really like the structure and focus on themed searches!

    I’ll keep you in my CMS as a Phoenix Realtor referral.

    Thanks,
    Jonathan

    You can view my Charleston SC waterfront homes website at the link below:

    Search Charleston SC Waterfront Homes

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