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

$370,000 :: 2533 E TULSA Street, Gilbert AZ, 85295

Property Photo

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3 beds, 2 baths
Home size: 1,914 sq ft
Lot Size: 10,019 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6062667
Community: GATEWAY RANCH
Tract: GATEWAY RANCH
Status: Active


Beautiful home located in highly sought after Gateway Ranch. Pride of ownership is evident in this 3 bedroom home. You'll enjoy the large great room with gas fireplace, dining area and tons of natural light from all the windows. The eat in kitchen features an island with a custom butcher block top. The master bathroom features dual sinks along with separate tub and shower and large walk in closet. The backyard has a watering system, tons of trees for extra shade, large gardeners storage shed and extended length patio with ceiling fans. The garage is extended in length giving you an extra 4 feet of depth.

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/!


$544,950 :: 3679 E KIMBALL Road, Gilbert AZ, 85297

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5 beds, 3 baths
Home size: 3,800 sq ft
Lot Size: 9,584 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063278
Community: CORONADO RANCH PARCEL 6
Tract: CORONADO RANCH PARCEL 6
Status: Active


Beautiful 5 bed/3 bath/loft home W/Pool in sought after Coronado Ranch in Gilbert. Absolutely GREAT community & schools! Many NICE UPGRAEDS in this home. Separate Living, Family, & Dining rooms. Recently FULLY remodeled Kitchen features staggered Premium cabinets, BIG island, quartz counters, SS appliances, tile backsplash, & soft close hardware. Master bath FULLY remodeled with HUGE walk-in tiled shower w/dual sprayers. ALL new ''wood plank'' tile & carpet. NEW paint. ALL baths & laundry have been remodeled too! Inviting private backyard has a Large cvrd patio, pebble finished pool w/water feature, & plenty of space for entertaining & relaxing. Only minutes away from lots of shops, restaurants, & the NEW Gilbert Regional Park. Move-in ready--COME SEE THIS HOME NOW!

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/!


$489,000 :: 735 N YUCCA Street, Chandler AZ, 85224

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4 beds, 3 baths
Home size: 2,730 sq ft
Lot Size: 8,277 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063270
Community: ANDERSEN SPRINGS
Tract: ANDERSEN SPRINGS
Status: Active


Andersen Springs, 4bdrm, 3bath,3 car garage and pool. Beautiful community greenbelt and park behind home. New carpet throughout. Formal living & dining with soaring ceilings, neutral color palette and plantation shutters. Open concept family room with wet bar, built-in cabinetry and cozy fireplace. Eat-in kitchen has an abundance of walnut cabinets, granite counters, SS appliances.Downstairs master , sitting area with full en-suite including a large double vanity, soaking tub, glass door step-in shower, private toilet room and large closet. Powder room and laundry downstairs. Generous sized secondary bedrooms and loft upstairs.The resort style backyard has a covered patio, beautiful pool & spa w/water feature, outdoor fireplace/conversation area. Close to schools, shopping and the loop 101

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/!


$359,900 :: 1220 W SEASHORE Drive, Gilbert AZ, 85233

Property Photo

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3 beds, 2.5 baths
Home size: 1,638 sq ft
Lot Size: 5,663 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063261
Community: ISLANDS PATIO HOMES B AMD LOT 95-192 TR C-E
Tract: ISLANDS PATIO HOMES B AMD LOT 95-192 TR C-E
Status: Active


You and many other will like this property has new upgraded low E windows and Patio door, freshly painted, new fan all on remotes - new lighting all LED except Garage*All new flooring Tile and carpet-except stairs/landing and 3rd bedroom, Baths look at the changes* kitchen upgraded appliances (Knock on the refrigerator door glass door twice - push button on handle,,look at the convection oven and the rest of the upgrade s) now open the cabinet under the sink - the disposal has has a motion light that goes on when door is open. Many other upgrades for you to explore and waiting for you to move in don't forget the Family and furniture. The whole valley is relatively close to you. Check the Islands out and find out what is offer for might really like the Islands

Listed with R & C Real Estate Investments, 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/!


$347,500 :: 941 S Utilis Drive, Gilbert AZ, 85296

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4 beds, 2.5 baths
Home size: 2,584 sq ft
Lot Size: 3,485 sq ft
Added: 03/09/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6048089
Community: Cooley Station North
Tract: Cooley Station North
The price of this listing was last reduced on 4/7/2020 by 0%
Status: Active


Hurry! Come check out this awesome 4 bed 2.5 bath, 3 CAR GARAGE home situated on a PREMIUM LOT! This home has many builder upgrades including granite counter tops and stainless steel appliances. It also features a closed in private patio that overlooks a spacious greenbelt. Convenient upstairs laundry room with washer & dryer included! HUGE open loft area as well for plenty of space for entertaining. Very large and spacious master bedroom and bathroom. Other bedrooms are also generously sized and all feature walk-in closets. The neighborhood offers many walking trails that lead to the three community pools & play areas in popular Cooley Station. Highly sought after location next to plenty of shopping and dining and also freeway access. Come see for yourself today!

Listed with On Q 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/!


$925,000 :: 1465 W ISLAND Circle, Chandler AZ, 85248

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3 beds, 2.5 baths
Home size: 3,208 sq ft
Lot Size: 23,959 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063218
Community: ISLAND AT OCOTILLO LOT 1-23 TR A
Tract: ISLAND AT OCOTILLO LOT 1-23 TR A
Status: Active


Premium Corner Waterfront Lot with No Neigbhors! Located in the Desirable Community of ''The Island at Ocotillo!'' Original Owner. 3 Car Garage! Beautiful Lush & Mature Landscaping! Huge Covered Patio! Phenomenal Curb Appeal! Excellent Floorplan & Good Bones! Quality Built Home! Master Bedroom two way fireplace & Family Room Fireplace! Formal Living & Dining Room! Offie w/ Book shelves! Wet Bar! Large Laundry Room with Built-In Ironing Board!

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/!


$499,000 :: 925 W LAREDO Avenue, Gilbert AZ, 85233

Property Photo

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5 beds, 3 baths
Home size: 3,755 sq ft
Lot Size: 8,277 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063240
Community: MADERA PARC ESTATES
Tract: MADERA PARC ESTATES
Status: Active


Conveniently located in Gilbert with quick access to freeways, parks and shopping. This well-appointed home has formal living, dining and great room. 9-foot ceilings, 9-inch baseboards, custom shutters and blinds throughout. A highly upgraded kitchen with island, stainless steel appliances, pantry, granite countertops and custom cabinets. Your huge master bedroom has a bay window and walk-in closet. The master bath has separate tub and shower and upgraded tile flooring. There's so much space to spread out, you even have an additional bonus/theater room! Don't forget about your backyard oasis with north/south exposure, extended back patio, pebble tech pool, waterfall and custom travertine decking. There's so much more, you must see to believe!

Listed with Superlative 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/!


$619,000 :: 3690 S VISTA Place, Chandler AZ, 85248

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6 beds, 3 baths
Home size: 3,227 sq ft
Lot Size: 9,584 sq ft
Added: 10/25/19, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 5997016
Community: SPYGLASS BAY
Tract: SPYGLASS BAY
The price of this listing was last reduced on 4/7/2020 by 2%
Status: Active


STUNNING & SPACIOUS BASEMENT HOME LOCATED IN HIGHLY DESIRED SPYGLASS BAY IN OCOTILLO*PERFECT FLOORPLAN*6 BEDROOMS, 3 BATHS*VAULTED CEILINGS*FORMAL LIVING & DINING*FAMILY ROOM W/FIREPLACE & SURROUND SOUND*KITCHEN INCLUDES:SLAB GRANITE,ISLAND,S/S APPLIANCES,GAS COOKTOP, & BREAKFAST NOOK*LARGE MASTER SUITE*MASTER BATH W/DUAL VANITIES,SOAKING TUB, SEPARATE SHOWER, & WALK-IN CLOSET*PLANTATION SHUTTERS THROUGHOUT*UPGRADED FIXTURES*MAIN LEVEL HAS MASTER BEDROOM & 3 BEDROOMS*FULLY FINISHED BASEMENT WITH MEDIA/GAMEROOM & 2 BEDROOMS WITH FULL BATH*LARGE SECONDARY BEDROOMS*PARADISE BACKYARD W/SPARKLING PEBBLE SHEEN DIVE POOL,BAJA STEP,JACUZZI,COVERED PATIO,GRASSY PLAY AREA,PAVERS, & RV GATE*3-CAR GARAGE W/BUILT-INS & EPOXY*CLOSE TO FREEWAYS,ENTERTAINMENT,SHOPPING,GOLFING, & EXCELLENT SCHOOLS!!!!

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/!


$335,000 :: 2586 S SETON Avenue, Gilbert AZ, 85295

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3 beds, 2 baths
Home size: 1,623 sq ft
Lot Size: 6,970 sq ft
Added: 03/26/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6056843
Community: CHAPARRAL ESTATES PARCELS 1 2 3 & 4
Tract: CHAPARRAL ESTATES PARCELS 1 2 3 & 4
Status: Active


Great home that is ready to be yours! Steps from top a rated elementary school, The San Tan Mall, Loop 202, the Amazing Gilbert Regional Park, and much more! Situated on a large corner lot that borders the greenbelt, you will find low maintenance landscaping, a private backyard with artificial turf, fire pit, and a dog run. Inside the home is an open split floor plan that features 3 bedrooms, 2 baths, 9+ flat ceilings with ceiling fans throughout. Fresh paint, new carpet, and tile in all the right places. The kitchen opens up to the family room which is great for entertaining. Master Suite is spacious and the Master Bathroom features dual sinks, jetted tub, shower, private toilet room, and a Walk In Closet. The home is VACANT and has HAND SANITIZER and CLOROX WIPES, Schedule a tour today!

Listed with Ashby Realty Group, 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/!


$302,000 :: 3311 E CHICKADEE Road, Gilbert AZ, 85297

Property Photo

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2 beds, 2 baths
Home size: 1,529 sq ft
Lot Size: 8,277 sq ft
Added: 04/07/20, Last Updated: 04/07/20
Property Type: Single Family
MLS Number: 6063152
Community: WINDMILL RANCH
Tract: WINDMILL RANCH
Status: Active


This home in Gilbert offers an island kitchen with stainless steel appliances and granite countertops, a den, plantation shutters, a master suite with patio access, a bay window, and a walk-in closet with built-ins, a master bath with dual sinks, granite countertop vanity, and a private toilet room, a covered patio, built-in backyard BBQ, and an attached two-car garage.

Listed with Opendoor Brokerage, 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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