Phoenix 2012 Real Estate Review

A Look  Back at 2012 for Phoenix Real Estate

The year in review of 2012 for homeowners was an encouraging one to be sure. 2011 was essentially a flat line, and there has not been any appreciation in home prices since 2005. Therefore, the 12 – 29% increase experienced in nearly all Phoenix metropolitan cities in 2012 was the perfect present indeed! If you’re interested in why prices finally made a U-turn and the chances of a repeat performance, feel free to read on.

 Foreclosures, Lender-Owned, Short Sales and Distressed Property in Phoenix

At one time bank owned properties accounted for over 50% of the sales, and when you added in short sales, distressed sales (foreclosures+short sales) were over 75% of the sales in many areas. That trend has been reversed and it is easy to see why when  you look at the number of homes receiving a Notice of Trustee Sale which is the mechanism advising the homeowner that the home is in foreclosure.  The graph above shows the number of Notices by quarter by year for Maricopa county.  Currently we’re approaching levels that were experienced prior to the bubble. The bottom line is with fewer homes going into foreclosure, the fewer bank-owned homes going up for sale.  And because Arizona practices non-judicial foreclosure the shadow inventory is minimal.

The  effect of this decrease of homes going into foreclosure can be seen in the

 

 

 

composition of the sales for the last 10 years.  The above graph shows the sales by month and the type of sales for the greater Phoenix area; normal in dark  blue, short sales in light blue and foreclosure (REO) in brown.  From 2008 through early 2011, foreclosures(brown bars) were a significant portion and normal sales fell significantly.  We also see that normal sales(dark blue) have increased since 2012 as prices have risen.  Short sales have not reduced as quickly as the foreclosures but will as prices rise and economic conditions improve.

Home Value Increases in Phoenix

As I mentioned nearly all Phoenix areas have seen increases in the sales prices and $/square foot of homes sold.  To the left is  a graph for Gilbert showing the average price per square foot for the last three years.  At the beginning of the year the average price/sq.ft. for homes sold was $89.  At the end of 2012, it has risen to $106/sq.ft., a 19% increase.

For the city of Queen Creek, we notice that prices on a per square foot basis started at around $58 and ended at approx. $78/sq.ft. reflecting a 34% gain for 2012.   This was one of the areas that was hardest hit during the decrease in home prices.

Remember these are averages and will vary depending on the house condition, location, age, size, amenities, upgrades and other variables.

If you’re interested in knowing the value of your home, please click on the following link, What is my home worth?

Inventory – Balancing Supply and Demand

In 2009 – 2010 Gilbert listings ranged between 1,400 – 1,900, during 2012 they were in the 350 – 600 listing range and ended 2012 at approximately 540.  This pattern is similar in many other cities.

In the beginning of 2010, Chandler  listings were approximately 1,200.  At the end of 2012, they were 440. This reduction in inventory of available listings has been the driving force in appreciating home values.

The best way to evaluate both supply and demand is to look at the supply of inventory.  The graph to the  left shows the months supply of inventory for various Phoenix area cities.  When the inventory goes up, this indicates that more houses are available on the market compared to the available demand.  A six month supply of inventory is considered normal.  Therefore, the graph shows that there is still robust demand for available homes as they come on the market.    It is still common for a property to receive multiple offers if it is priced appropriately.

 What is in store in 2013 for Phoenix real estate?

The inventory graph also gives us an indication of what is in store for 2013.  As prices rise, fewer homes will be under water and more traditional sales will come on the market at prices than typical short sales and foreclosures.  Some buyers may decide not to buy as prices rise and the supply will seek a more  balanced level between supply and demand. Again 6 months inventory supply is considered normal.   As you can see, each city is at a different stage in returning to balanced supply and demand.  I believe prices will continue to rise in 2013, but not at the rate we’ve experienced in 2012.  My guesstimate is about half the appreciation rate that we’ve seen in 2013.

If you’re interested in receiving home listings as they come on the market, click on Receive Listings Automatically, or if you’re interested in the market value of your home, go to What is my home worth?

Related Posts:

Distressed sales for 2012 compared to 2011

Who really loses on a foreclosure – the bank? Thing again!

In search of happily ever after with a short sale

Helpful Searches:

Gilbert Home Search

Mesa Homes  for Sale

Queen Creek Home Search

$844,000 :: 1734 E QUEEN PALM Drive, Gilbert AZ, 85234

Property Photo

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4 beds, 3 baths
Home size: 2,658 sq ft
Lot Size: 12,197 sq ft
Added: 04/15/21, Last Updated: 04/15/21
Property Type: Single Family
MLS Number: 6218906
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
Status: Active


Step into gated lakefront luxury and be welcomed with views that only waterfront living can provide! This spotless home features 4 bedrooms, 3 renovated bathrooms, a chef's kitchen, a master bedroom with access to an upstairs deck allowing for unobstructed views of the lake, sparkling private pool and built in BBQ. Pride of ownership, this home has received accolades from the community architectural committee for the beautifully landscaped yard. Community amenities include tennis, pickleball, a baseball field, community playgrounds, a rose garden, a recently approved addition of a community garden, 5 community pools including a beach entry pool with real white sand! A+ schools and the elementary school right outside the gate! Just minutes to the 60, shopping, dining, and entertainment.

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/!


$1,250,000 :: 1726 E QUEEN PALM Drive, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 3,134 sq ft
Lot Size: 11,326 sq ft
Added: 04/14/21, Last Updated: 04/14/21
Property Type: Single Family
MLS Number: 6221496
Community: VAL VISTA LAKES
Tract: VAL VISTA LAKES
Status: Active


Rare opportunity in Val Vista Lakes to own a fully furnished turn key home on the waterfront that's been completely remodeled inside and out!! Absolutely stunning views of the lake with a modern/contemporary interior flare! Open great room concept, natural light throughout, quartz counters, stainless steel appliances, kitchen island, tile floors, new roof, new exterior stucco & paint, newer AC units, heated pool & spa, covered patio, and so much more as this home was taken down to the studs! 4 beds, 3 baths, 2 fireplaces, built in BBQ area and boat dock! Located in one of the premier lake communities in AZ with unrivaled community amenities, you don't want to miss out on a chance to own a home in paradise. **All furniture included and pontoon boat available by separate bill of sale.**

Listed with RE/MAX Fine Properties


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


$575,900 :: 1025 W PENINSULA Drive, Gilbert AZ, 85233

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4 beds, 3 baths
Home size: 2,787 sq ft
Lot Size: 10,019 sq ft
Added: 12/05/20, Last Updated: 01/27/21
Property Type: Single Family
MLS Number: 6156476
Community: WINDHAVEN
Tract: WINDHAVEN
Status: Active


BEST PRICED WATERFRONT ISLAND HM.N/S.EXP.OVER 10K SF WATERFRT VIEW LOT W/94 FEET OF WATER FRONT & APPROX.120FT DEEP LOT.PRVT DOCK BRIGHT&OPEN.FORMAL LVG;DININGNOOK+FR.VAULTED CEILING.UPDATED FLOORING;GRANITE COUNTER KITCHEN CABINETS;WHITE WOOD SHUTTERS.SECURITY DRS@ENTRY&BACK PATIO DBL FRENCH DOOR. OVER-SIZED COV'D PATIO.WET BAR W/GRANITE COUNTER.ALL BATHS HAVE BEEN REMODELED.MASSIVE MASTER BR W/HIS&HER'S CLOSETSSEP.TUB/SHOWER.2 SINKS W/SPACIOUS COUNTER SPACE&STORAGE.DBL FRENCH DOOR W/SEC.IRON GATE WALK ON TO PVT WATER FRONT VIEW DECK FOR YOUR LEISURE MORNING RELAXATION -THEN RETURN TO ENJOY THE INCREDIBLE ARIZONA SUNSET-LIFE IS JUST PERFECT HERE. HURRY! CALL NOW FOR YOUR PRIVATE TOUR ARRANGEMENT. MUST SEE TO APPRECIATE. MASKS REQUIRED WHILE ON THE PREMISE.

Listed with FDR 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/!


$1,125,000 :: 1681 W LYNX Way, Chandler AZ, 85248

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4 beds, 3 baths
Home size: 3,578 sq ft
Lot Size: 12,197 sq ft
Added: 04/17/21, Last Updated: 04/17/21
Property Type: Single Family
MLS Number: 6220984
Community: OCOTILLO LAKES PARCEL I
Tract: OCOTILLO LAKES PARCEL I
Status: Active


CALL IF YOU WANT TO SHOW BEFORE SATURDAY. Wow! Don't miss this stunning property boarding on 110 feet of waterfront & waterways siding greenbelt in the gated community Retreat at Ocotillo Lakes! Almost 3600 square foot single level home with a split floor plan loaded with upgrades! Large & open living/ family room with soaring ceilings, upgraded tile & wood flooring, crown molding, all over looking the beautiful lake! Large eat-in kitchen island, granite counters, walk-in pantry & custom stone backsplash. Oversized master bedroom with exit to the backyard paradise & large bath which includes separate snail shower/tub with jets, double sinks, granite counters, 2 walk-in closets with classy closet organizers & custom cut glass accent windows. Oversized secondary bedrooms & 2 remodeled

Listed with Keller Williams Realty Sonoran Living


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


$1,195,000 :: 1642 W LYNX Way, Chandler AZ, 85248

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5 beds, 3 baths
Home size: 3,854 sq ft
Lot Size: 18,296 sq ft
Added: 04/15/21, Last Updated: 04/15/21
Property Type: Single Family
MLS Number: 6220068
Community: OCOTILLO LAKES PARCEL I
Tract: OCOTILLO LAKES PARCEL I
Status: Active


Ocotillo Retreat living ! Largest home in the fabulous and quiet gated community of Ocotillo Lakes. Lake views and patio exits from formal/dining/family and master bedrooms! Home features 5 bedrooms including an oversized media-room/den/office. Split floorplan with beautiful hardwood flooring in all bedrooms! master suite has a fireplace, 2 walk in closets and a stunning upgraded master bath with standalone tub and oversized shower! Jack and Jill bedrooms and a separate bedroom with a full bath! The oversized room is perfect as a media room or an office or children play room! Tall 12+ ft ceilings, security system, formal room fireplace, plantation shutters in rooms. Open kitchen is a delight with granite countertop, gas cooktop, sub zero fridge, pantry, desk space and beautiful cabinetry

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/!


 

More Chandler and Gilbert  waterfront properties are available at Gilbert-Chandler Waterfront Homes

 

 

 

 

 

 

 

 

 

 

 

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