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

$475,000 :: 505 S Marina Drive, Gilbert AZ, 85233

Property Photo

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3 beds, 3.5 baths
Home size: 2,425 sq ft
Lot Size: 3,921 sq ft
Added: 08/28/20, Last Updated: 09/30/20
Property Type: Single Family
MLS Number: 6121725
Community: Coral Point
Tract: Coral Point
The price of this listing was last reduced on 9/30/2020 by 1%
Status: Active


This is your chance to own a little slice of paradise! Waterfront lot within a gated community in a prime Gilbert location. Whether you want to relax in the calming front courtyard or explore the lake on your boat, this home offers it all. The spacious yet cozy floor plan has 2 owner's suites (one up, one down) each with their own exit to outside. Downstairs has a formal dining area overlooking the family room with a gas fireplace. The inviting kitchen has custom features that will make cooking a breeze: built-in spice racks, cabinets with pull-out shelves, lazy susans, soft-close hinges, double-decker silverware drawer & a custom wood top island with storage. Plus a farmhouse sink, Quartz countertops, gas range, pantry & built-in sitting nook. Upstairs you will find a 3rd bedroom tucked

Listed with Dana Hubbell 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/!


$509,000 :: 1446 W CORAL REEF Drive, Gilbert AZ, 85233

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3 beds, 3 baths
Home size: 2,289 sq ft
Lot Size: 2,178 sq ft
Added: 09/25/20, Last Updated: 09/25/20
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6136591
Community: TOWNHOMES ON CORAL REEF
Tract: TOWNHOMES ON CORAL REEF
Status: Active


STUNNING and Highly upgraded Coral Reef WATERFRONT home has all the premium extras you could imagine! You will enter the front custom security w/ring doorbell into all new downstairs tile flooring. Open Kitchen which features new cabinets with hidden drawer inserts, undercounted lighting with remote, custom pantry with drawers, one slab quartz island 4.6'x7', GE stainless Smart stove, refrigerator and dishwasher, hidden stove w/LED light and fan fixture, Bosch sliding door wall microwave and Auzllon beverage refrigerator. New paint and ceiling fans throughout home and french doors that take you into your den or 4th bedroom. Upstairs your master suite features multiple upgrades, over 90k in premium upgrades (see doc tab for more). New air conditioner, R/O and Water Softener system.

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/!


$775,000 :: 904 E HAMPTON Lane, Gilbert AZ, 85295

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5 beds, 4 baths
Home size: 4,271 sq ft
Lot Size: 8,712 sq ft
Added: 09/24/20, Last Updated: 09/24/20
Property Type: Single Family
MLS Number: 6136664
Community: ESTATES AT VELVENDO
Tract: ESTATES AT VELVENDO
Status: Active


COME HOME TO A DREAM! Portraying EVERYDAY FUNCTIONALITY & THE DESIRABLE GILBERT LIFESTYLE in all ways... Distinctive 2017 Meritage Home craftsmanship & valued efficiencies, Today's Open Great Room floor plan offering several bonus spaces, full bath/bed downstairs, 4-car garage & expansive Owner Retreat w/Private Balcony, Craftsman Home Interior modeling all must-have structural options & exclusive finishes/upgrades, Tastefully appointed Kitchen that would please a true chef, Designer Pool & Backyard Space invites all the moments you've earned to relax, entertain & splash in your own tropical outdoor escape, superior water-way home-site w/scenic creek & mountain views, Gilbert's Destination Master Plan of Velvendo,

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/!


$759,000 :: 2135 E CLIPPER Lane, Gilbert AZ, 85234

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4 beds, 2.5 baths
Home size: 3,514 sq ft
Lot Size: 10,019 sq ft
Added: 08/10/20, Last Updated: 09/11/20
Property Type: Single Family
MLS Number: 6115579
Community: REGATTA AT VAL VISTA LAKES AMD LOT 1-108
Tract: REGATTA AT VAL VISTA LAKES AMD LOT 1-108
The price of this listing was last reduced on 9/11/2020 by 2%
Status: Active


Incredible fully custom home located in the desirable Regatta gated community of Val Vista Lakes. Italian Mediterranean style w/ beautiful imported white carrara marble flooring, coffered ceilings & elegant interior columns. Built at cost of nearly $1,000,000. Gorgeous water views from all interior rooms and large outdoor balcony. Beautiful hand-painted canvas murals available for purchase. Luxurious master suite on ground floor. Kitchen features upgraded cabinets and granite counter tops. Separate living and family rooms. Domed ceiling with mood lighting. Two-way fireplace. Fruit trees including delicious oranges, lemons & figs. Amazing clubhouse w/ fitness, tennis, racquetball, pools with sandy beach, and lots more. Check out the Visual Tour for incredible views of home and water

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/!


$999,900 :: 1422 W COMMERCE Avenue, Gilbert AZ, 85233

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5 beds, 5 baths
Home size: 6,298 sq ft
Lot Size: 10,019 sq ft
Added: 02/01/20, Last Updated: 05/28/20
Property Type: Single Family
MLS Number: 6031674
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
Status: Active


Live in 5,000 sq. ft. of the main home and put guests or a tenant in the 1,200 sq. ft. next gen suite which has a separate entrance. Wakesurf and wakeboard on your private lake from the dock in your own backyard. Owner will include the boat in the sale as a turn-key lakefront luxury experience.

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/!


$553,000 :: 1414 W CORAL REEF Drive, Gilbert AZ, 85233

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3 beds, 3 baths
Home size: 2,545 sq ft
Lot Size: 1,743 sq ft
Added: 03/13/20, Last Updated: 04/06/20
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6050219
Community: TOWNHOMES ON CORAL REEF LOT 1-53 TRACT A-G
Tract: TOWNHOMES ON CORAL REEF LOT 1-53 TRACT A-G
The price of this listing was last reduced on 4/6/2020 by 2%
Status: Active


Waterfront lot with custom inside built in 2007. Custom Alder cabinets in entire home with granite counters. Travertine flooring thru entire home except carpet in 3 bedrooms. Downstairs den with double doors can be changed to a bedroom if needed. Open floorpan with kitchen, dining, and family room all open to view of the lake. Sliding door to cement patio area. Master bedroom has a balcony also. Electric fireplace in family room. Surround sound inside and out. Huge master with his and her sinks , jetted tub. Master has sitting area with wet bar. Both other bedrooms have their own sink area and share toilet/shower. Dual HVAC system . Extra insulation for every efficient home. Washer and dryer are tenants. Fridge stays with offer. Home warranty in place with 2-10. Owner/Agent.

Listed with Sun Canyon 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/!


 

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

 

 

 

 

 

 

 

 

 

 

 

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