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

$655,000 :: 1122 E COCONINO Drive, Chandler AZ, 85249

Property Photo

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4 beds, 3 baths
Home size: 2,904 sq ft
Lot Size: 10,890 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184222
Community: ALAMOSA ESTATES
Tract: ALAMOSA ESTATES
Status: Active


This Chandler Gem, Totally custom features from the nicest kitchen in town! custom flooring, Master retreat is steps from the pool, bring the out doors in with the expansive glass doors. Landscape very will done, with a perfect spot for you herb garden. Wont last........ Solar system, owned and conveys with property. Goodbye electric bill!

Listed with Coldwell Banker 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/!


$499,900 :: 581 N ASH Drive, Chandler AZ, 85224

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4 beds, 3 baths
Home size: 2,717 sq ft
Lot Size: 7,841 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184221
Community: SOUTHERN MEADOWS 1 LOT 1-110 TR A-H
Tract: SOUTHERN MEADOWS 1 LOT 1-110 TR A-H
Status: Active


Beautiful house in the lake subdivision of Andersen Springs! With over 2700sf, there's tons of room to play and work! This home has 4 bedrooms, 2.5 bathrooms, a spacious great room, an office/den, and a 3 car garage! Cozy brick fireplace in the center of the family room. Has a covered patio in the backyard along with lots of space to relax outside! House is located in a great neighborhood with greenbelts, lakes, paths & is just minutes away from schools, Chandler Fashion mall, & the lively Downtown Chandler restaurants/bars!

Listed with Delex 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/!


$425,000 :: 4260 E AMBER Lane, Gilbert AZ, 85296

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3 beds, 2 baths
Home size: 1,576 sq ft
Lot Size: 5,663 sq ft
Added: 01/14/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6181158
Community: ELLIOT GROVES AT MORRISON RANCH PHASE 2
Tract: ELLIOT GROVES AT MORRISON RANCH PHASE 2
The price of this listing was last increased on 1/21/2021 by 2%
Status: Active


Welcome to your New Home in Morrison Ranch in Gilbert! This home features 3 bedrooms, 2 bathrooms with a den/office. Enter through the custom iron front door to an open floor plan to the family room and kitchen. The interior boasts new flooring throughout, neutral interior paint, new quartz countertops, butcher block kitchen island with pendant lighting, newly refinished kitchen cabinets. All new stainless steel appliances and sink. A split floor plan with a spacious master bedroom, walk-in closet, and new spa shower! The backyard features a covered patio and grass area that you can add your personal touch too! Close to community park, shopping, dining, and freeway access!

Listed with Keller Williams Arizona 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/!


$342,000 :: 2297 E STOTTLER Drive, Gilbert AZ, 85296

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3 beds, 2 baths
Home size: 1,470 sq ft
Lot Size: 5,228 sq ft
Added: 11/19/20, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6162462
Community: COTTONWOODS CROSSING PHASE 2
Tract: COTTONWOODS CROSSING PHASE 2
The price of this listing was last reduced on 1/13/2021 by 0%
Status: Active


Investors only. Tenant occupied. Tenant's rights. **NO SHOWINGS until accepted contract**Tenants and lease to stay with property and new owner. Exterior of home freshly painted! 3 Bedroom, 2 bathroom plus den/game room! Tile and carpet flooring, upgraded light fixtures, ceiling fans throughout. Extra large newer hot water heater, large covered back patio, parks, golf, shopping freeway nearby! Investors only. Tenant occupied. Tenant's rights. No showings until accepted contract. Tenants and lease to stay with property and new owner.

Listed with Home Again Arizona, Real Estate and Property Management


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


$340,000 :: 707 W LOUGHLIN Drive, Chandler AZ, 85225

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3 beds, 2 baths
Home size: 1,515 sq ft
Lot Size: 6,970 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6181088
Community: WOMACK EAST UNIT 2
Tract: WOMACK EAST UNIT 2
Status: Active


Great 3 bedroom, 2 bath home with a pool in a great Chandler neighborhood now for sale. Newer flooring and paint in the main living and kitchen areas and the vaulted ceilings really make this property a standout. The mature landscaping, pool, and gazebo really makes the backyard very usable and an great extension to the popular floorplan of the home. The attached two car garage and indoor laundry really add convenience and the extra tall rear block wall really adds privacy, and best of all NO HOA! Get into this one before its gone.

Listed with Capstone Realty Professionals


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


$609,900 :: 3102 E SAN CARLOS Place, Chandler AZ, 85249

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4 beds, 2.5 baths
Home size: 2,964 sq ft
Lot Size: 10,019 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184152
Community: REIDS RANCH
Tract: REIDS RANCH
Status: Active


Stunning 4 bedroom, 2 1⁄2 bath home, w/3 car garage is an entertainer's dream. With 10' ceilings in the highly desirable Reids Ranch subdivision, situated on a cul-de-sac with the backyard facing a beautiful greenbelt.Backyard has a large, covered patio, swimming pool, putting green, & outdoor TV.Inside features a gorgeous kitchen w/large island, maple cabinets, granite countertops & stainless appliances. Spacious master bedroom, bathroom & oversized walk-in closet. Also has a large, versatile theatre room, great for family gatherings. Recently updated backyard landscape, along with added pavers to back, side yard & front yard. OPEN HOUSE January 23 10AM - 3PM

Listed with Infinity & Associates 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/!


$425,000 :: 1691 W CAMPBELL Avenue, Gilbert AZ, 85233

Property Photo

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3 beds, 2 baths
Home size: 2,226 sq ft
Lot Size: 6,970 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184130
Community: EL DORADO LAKES GOLF COMMUNITY TRACT K
Tract: EL DORADO LAKES GOLF COMMUNITY TRACT K
Status: Active


Single Story home in El Dorado Lakes Golf Community. This home is truly Turn-Key!The beautiful front yard landscape has low maintenance turf and a gorgeous stamped flagstone walkway to front door.The backyard is an entertainers paradise with an amazing pebble-tec pool & water feature, patio surround sound, pergola, and built-in BBQ. It's all surrounded by lush tropical palms that provide just the right amount of shade. Inside offers a split floor plan with tons upgrades. Floors and counters are all natural stone and marble. Please note wood beams have been removed from kitchen since photos. Large Master with double sinks, huge shower and walk-in closet. 2.5 car garage w/ epoxy flooring. Attic storage. Too many features in home to mention! Can't beat this Gilbert location!

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/!


$314,000 :: 2084 N HOLGUIN Way, Chandler AZ, 85225

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3 beds, 1.75 baths
Home size: 1,170 sq ft
Lot Size: 3,921 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184133
Community: ARBORLANE
Tract: ARBORLANE
Status: Active


**MOVE-IN READY!!SHOWS LIKE A MODEL!!** Located in the Center of subdivision directly ACROSS THE STREET FROM PARK!! Kitchen updated with newer MAYTAG Stainless Steel Appliances: Maytag Frenchdoor Refr, Maytag Range, Microwave, Dishwasher*Granite Countertops*Master Bdrm New Tile flooring installed just this month**Updated Master Bath Walk -in Shower with designer tile and glass doors*MBath Granite Counter Tops*Updated Lighting Fixtures and Newer fans throughout**Attached 2 Car Garage with updated garage door opener with WiFi capabilities**Great Natural lighting*Washer and Dryer convey! HOA provides Front yard maintenance**Backyard is a clean slat ready for your personal designer touches**PRIDE OF OWNERSHIP REALLY SHOWS!! DON'T MISS OUT!

Listed with Desert Properties 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/!


$355,000 :: 1018 S DEERFIELD Lane, Gilbert AZ, 85296

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3 beds, 2.5 baths
Home size: 1,817 sq ft
Lot Size: 3,485 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184120
Community: COPPER RANCH AMD
Tract: COPPER RANCH AMD
Status: Active


You have to check out this awesome 3 bedroom 3 bath home in Gilbert! Out front you have lovely curb appeal with low maintenance yard. Home also feautures a spacious 2 car garage with plenty of space for your cars or a converted gym. The garage also includes an entire wall of storage cabinets.Inside you have neautral paint and wood flooring throughout with tons of natural light. Downstairs the large great room is perfect for entertaining while the kitchen includes a breakfast bar and cabinet / coutnertop space galor.Upstairs the large master has a generous walk-in closet. Out back includes a covered patio and green area. This one definitely won't last long so make sure you check it out today!

Listed with eXp 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/!


$275,000 :: 1305 W BOXELDER Court, Chandler AZ, 85224

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2 beds, 2 baths
Home size: 1,022 sq ft
Lot Size: 4,356 sq ft
Added: 01/21/21, Last Updated: 01/21/21
Property Type: Single Family
MLS Number: 6184089
Community: PARKWOOD ESTATES UNIT 4 PHASE 2
Tract: PARKWOOD ESTATES UNIT 4 PHASE 2
Status: Active


A home in Chandler listed under $300,000! Is it a condo? Nope; Is it a townhome with a very high HOA fee? Nope; it must be in a remote, inconvenient location! Nope. This charming home is your chance to own a single family detached home in great community on a cul-de-sac located between the 101 freeway and I-10, close to the 60, with parks and other amenities nearby. Brand new a/c unit will keep you cool as you enjoy the efficient kitchen with eat-in area, nice size great room off the kitchen, two good sized bedrooms and 2 baths. The paver and grass backyard offers more opportunities to enjoy the Arizona lifestyle with low maintenance and a relaxing vibe. Newer flooring includes luxury vinyl throughout with newer carpet in the bedrooms. The homes interior has been recently painted and the

Listed with Copper Summit Real Estate 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/!


 

 

 

 

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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