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?

To receive updated properties of homes in the Phoenix area, click on  Receive property listings via e-mail  and describe the home you’re looking for in detail.

Related Posts:

Distressed Sales in 2012 compared to 2011

Where’s the  Phoenix market going in 2012?

Luxury Waterfront Property in Phoenix

$310,000 :: 1822 W Mission Drive, Chandler AZ, 85224

Property Photo

Mls Icon

4 beds, 3 baths
Home size: 1,511 sq ft
Lot Size: 6,970 sq ft
Added: 04/16/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5912252
Community: Cameo East
Tract: Cameo East
Status: Active


NO HOA! FULL remodel that features 4 true bedrooms and 3 full bathrooms! Fantastic floor plan with a huge designer kitchen that's loaded with all the upgrades. Wood look tile all throughout the main living areas. Great laundry room (which is hard to find in this price point). Upstairs is two bedrooms and a full bath. Master bedroom is on the first floor along with another bedroom that has a full bathroom right next to it. New dual pane windows throughout. New exterior paint. New wood fence on property. The list goes on and on!

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/!


$285,000 :: 626 S SADDLE Street, Gilbert AZ, 85233

3 beds, 2 baths
Home size: 1,391 sq ft
Lot Size: 6,970 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915824
Community: MARTINQUE
Tract: MARTINQUE
Status: Active


Meticulously maintained home ready for the pickiest buyer! Sellers have really cared for this home. HVAC system and pool equipment have been upgraded to energy efficient equipment. Other recent improvements include pool pebble tec resurface, exterior paint, new patio roof, and water heater. Open floor plan with 3 bedrooms and 2 baths. Split master has separate entrance to pool. Master bath has separate tub and tiled shower, dual sinks and walk-in closet. Granite counters, stainless steel appliances and large pantry in kitchen. Three car garage with built-in cabinets and garage door openers. Amazing back yard with pool, covered patio the length of the house, built-in BBQ and large grassy area.

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/!


$334,900 :: 2981 N BENSON Lane, Chandler AZ, 85224

Property Photo

Mls Icon

3 beds, 2.5 baths
Home size: 2,099 sq ft
Lot Size: 7,406 sq ft
Added: 12/12/18, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5856523
Community: MARLBOROUGH ESTATES LOT 1-75 TR A-D
Tract: MARLBOROUGH ESTATES LOT 1-75 TR A-D
The price of this listing was last reduced on 4/24/2019 by 2%
Status: Active


What an amazing home in Marlborough Estates! This home shows pride of ownership and the following features... 3 bedrooms, 2.5 bathrooms, 2 car garage, almost 2100 sq ft,with new exterior paint, neutral two tone paint, gorgeous wood flooring and tile throughout the home, open eat-in kitchen with breakfast bar/island, spacious master bedroom with dual vanities and separate shower/tub in the master bathroom. The backyard has a covered patio, diving pool (just re-plastered) mature front and backyard landscaping with grass

Listed with Conway 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/!


$475,000 :: 6436 S TROPHY Court, Gilbert AZ, 85298

Property Photo

Mls Icon

3 beds, 2 baths
Home size: 2,740 sq ft
Lot Size: 11,762 sq ft
Added: 04/07/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5908083
Community: SEVILLE PARCEL 10A
Tract: SEVILLE PARCEL 10A
The price of this listing was last reduced on 4/24/2019 by 2%
Status: Active


Seville living on quiet cul-de-sac! Popular Pabello floor plan is beautiful and features 3 bedrooms plus a HUGE bonus room that could easily be used as a 4th bedrm. Even a private master retreat! Spacious split floor plan. Gourmet kitchen features stainless steel appliances, slab granite counter tops, raised panel oak cabinets & tons of storage! Tile in all the right places! Ceiling fans & lighting. Fresh paint t/o. 10 ft ceilings. Entertaining made easy w/PRIVATE POOL, grassy backyard, extended covered patio, large RV gate & side yards. Plantation shutters/blinds. 3-car garage. Seville is Gilbert's only private golf club! Member only dining. Membership required for most community features including 4 pools & waterslides, state-of-the-art gym, basketball, tennis & more! Must see & tour!

Listed with Ravenswood 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/!


$325,000 :: 2034 E HULET Place, Chandler AZ, 85225

Property Photo

Mls Icon

3 beds, 2.5 baths
Home size: 2,061 sq ft
Lot Size: 4,792 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915811
Community: PARK VILLAGE
Tract: PARK VILLAGE
Status: Active


GREAT location in gated community of Park Village. You will love this one - super clean, with neutral paint and flooring throughout. Just painted and brand new carpet. Come see this 3 bedroom, 2.5 bath hidden gem, in CHANDLER!! You will not be disappointed.

Listed with ProSmart 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/!


$899,988 :: 1759 W TONTO Drive, Chandler AZ, 85248

Property Photo

Mls Icon

6 beds, 3.5 baths
Home size: 4,362 sq ft
Lot Size: 24,394 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915749
Community: CATALINA SHORES AT OCOTILLO
Tract: CATALINA SHORES AT OCOTILLO
Status: Active


Spectacular residence in Chandler! 5 beds, 3.5 bath BASEMENT home has it all! *Over 1/2 ACRE CUL DE SAC LOT professionally landscaped & perfect for entertaining 3 car garage, and RV gate. Interior boasts great attention to detail & breathtaking beauty! New Interior Paint Travertine tile, wood flooring & new neutral berber carpet wood shutters, ceiling fans, security system, central vac, surround sound, epoxy finished garage, soft water/RO. Extended Great room, family room w stone/fireplace Open light and Bright - Kitchen w/granite countertops, tile back-splash, Gas Range, tons of storage, and island w/breakfast bar. Spacious master retreat has backyard exit, plantation shutters, and walk-in closet. Basement includes a large game room, along with 2 bed and a bath and storage room.

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/!


$444,000 :: 2894 E WESTCHESTER Drive, Chandler AZ, 85249

Property Photo

Mls Icon

3 beds, 2 baths
Home size: 2,535 sq ft
Lot Size: 11,326 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915767
Community: SUN RIVER PARCEL A
Tract: SUN RIVER PARCEL A
Status: Active


Impeccable single level property located in a wonderful neighborhood in Chandler is now available for you. Beautifully landscaped with a low maintenance mature desert front yard and 3 car garage with storage racks. Fabulous interior features a split floor plan, 3 bed, 2 bath, stone fireplace in family room, archways throughout, wet bar, and a den ideal for an office. Well maintained eat-in kitchen is complete with black matching appliances, recessed lighting, granite counter-tops, walk-in pantry, and centered island with breakfast bar. Bright master bedroom includes a lavish full bath dual sinks, separate tub, step-in shower, and walk-in closet. Take a look at this backyard perfect for entertainers complete with covered patio, greenhouse, and sparkling blue pebble-tec pool ready to be used

Listed with Keller Williams Realty Professional Partners


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


$439,900 :: 4130 E CAMPBELL Avenue, Gilbert AZ, 85234

Property Photo

Mls Icon

4 beds, 2.5 baths
Home size: 3,945 sq ft
Lot Size: 9,148 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5914311
Community: RANCHO COLLENE AMD
Tract: RANCHO COLLENE AMD
The price of this listing was last reduced on 4/24/2019 by 1%
Status: Active


Your search ends here! The demand is high for homes within the Rancho Collene community so come take a look! This popular model has 4 bedrooms, den, plus an oversized bonus/game room. Secondary bedrooms are large with 2 having walk-in closets. Like to entertain? Perfect! The lower level offers a formal dining room, living room, large family room plus beautiful kitchen with double ovens, island, walk-in pantry, snack bar and breakfast nook area. Outdoors you have a private pool, spa, covered patio, and large grass area. The 3-car garage has built in cabinets and plenty of storage space. Stop by today!

Listed with The Real Estate Firm


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


$262,999 :: 4219 E TYSON Street, Gilbert AZ, 85295

Property Photo

Mls Icon

3 beds, 2.5 baths
Home size: 1,557 sq ft
Lot Size: 3,050 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915742
Community: WILLOWS
Tract: WILLOWS
Status: Active


This is it! Drive up through beautiful tree-line streets in this lovely community to your new home! Awesome kitchen open to living area. Spacious kitchen has large pantry, lots of cabinets, granite counter tops, and island breakfast bar. Incredible master suite with his/hers walk in closets, split double sinks, separate tub & shower. Two additional good sized bedrooms & another full bath & laundry room also on upper level. Side yard even has a space to entertain, with firepit. This community offers swimming pools, play parks, basketball/volleyball courts & biking/walking paths. Highly desired location close to the 202 freeway, San Tan mall, great restaurants and other entertainment. Don't miss this one!

Listed with Ocotillo 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/!


$399,900 :: 856 E INDIAN WELLS Place, Chandler AZ, 85249

Property Photo

Mls Icon

3 beds, 2 baths
Home size: 2,032 sq ft
Lot Size: 8,277 sq ft
Added: 04/24/19, Last Updated: 04/24/19
Property Type: Single Family
MLS Number: 5915739
Community: LAGOS VISTOSO
Tract: LAGOS VISTOSO
Status: Active


Stunning single level home on the LAKE! Complete REMODEL with over $100k in upgrades including new CUSTOM POOL! Newly remodeled gourmet kitchen, quartz counters, upgraded cabinets, new backsplash, all new appliances, new sink, bosch dishwasher garbage disposal, extended kitchen island. Open floorplan with new 6x39 plank tile, new carpet, 5 inch baseboards. Fresh paint inside. All new brushed nickel hardware, designer LED lighting, new light fixtures. SMART home, lighting and a/c controlled by Alexa. Ring doorbell, new electric fireplace. All bathrooms remodeled with new vanities toilets and sinks, new ceiling fans. Garage wired for Tesla charging. Backyard has been landscaped, extended pergola patio, new drip system and sprinklers, pool has colored lighting and water feature!

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

Leave a Reply

Your email address will not be published. Required fields are marked *