2014 Real Estate Market Update

How 2013 ended and where is the market going in  2014?Waterfront View II

The past 2 years have provided Phoenix area homeowners with double digit gains, and the market has been in the sellers’ favor.  But with higher prices and more sellers looking to take advantage, the balance between buyers and sellers is shifting.  Distressed sales (short sales and  foreclosures) which were a favorite of investors continue to see significant decreases. Are foreclosures coming back? Will more houses sell in 2014? How long will it take to sell a home in 2014? Are inventory levels still low?  Continue to read for answers to these questions.

Where have the distressed sales gone?

Dec 2013 Distressed Sales

It doesn’t seem too long ago that horror stories about getting a short sale closed were all too common. And those foreclosures and  short sales that investors eagerly sought after are all but gone.  And if you find a Fannie Mae foreclosure, it is probably over-priced when it comes on the market.  Foreclosure sales are now quickly becoming a minority of total sales.  In most all Phoenix area cities distressed sales have been cut in half or more in the last 12 months. The graph to the left shows distressed sales as a percentage of monthly sales for various cities.  Chandler distressed sales went from 36% in Dec. 2012 to 14%  in Dec. 2013.  Gilbert distressed sales reduced from 37% to 13%, and Glendale from  41% to 20%, and Avondale saw distressed sales change from 52% to 27% while Mesa sent from 35% to 17%.  These drops are very not suprising  since Notices of Trustee Sale which are a leading indicator of short sales and foreclosures are down to levels not seen since 2006!

Will more homes sell in 2014?Phoenix sales per week 2014

As prices have risen for the past three years, demand or sales of houses has responded to price changes, something economists call ‘Price elasticity of Demand’.   The chart to the right shows the sales for the city of Phoenix for years 2011 – 2013 and the first weeks  of January 2014.  This chart is representative of most valley cities. The bottom line is that demand or sales for houses has decreased as the prices have increased. Additionally, the number of homes for sale has gone up.  So it is understandable why sales during the first month of 2014 are lower than the previous 3 years and likely to continue for the year.

How long will it take to sell in 2014?

Months Supply Feb 2014If you are a seller and wondering how long it will take to sell your home, the graph to the left my be a guideline. It shows how many months of supply of homes are on the market for specific price ranges.  As you can see it will depend on the market value of the property. Gone are the days when homes would go on the market Friday and receive multiple offers over the weekend.  Even lower prices homes are taking longer than a year ago.

What’s ahead in 2014?Active Listings by Category

2014  will be a transition year for Phoenix real estate that seeks equilibrium from previous extremes and becomes a normal market(if that’s possible). One  of differences between 2013 and 2014 will inventory levels or available homes for sale, both in the number and type.  Since mid-2013 the available homes for sale has been rising, and fewer are short sales and foreclosures as noted above.

Price appreciation will be significantly less than in previous years.  Reasons for this slow down?

1.)  Interest rates will be higher than in the past.  A discussion with a good loan officer will be helpful in this regard.

2.)   There are not as many investors as there were a year ago when short sales and foreclosures were in high demand due to lower prices.

3.) Higher inventory levels provide buyers more leverage.

4.) Fewer properties will be sold in 2014 than in 2013 as noted above.  With more homes for sale in 2014, buyers will have more leverage and homes from which to choose which will dampen the price appreciation we’ve enjoyed for the last 2 years.

Pontoon boat viewIn 2014, it will be more important than ever to property price a home, make necessary preparations before going on the market, and getting maximum exposure to qualified buyers.
If you’d like me to review comparable sales for your property, click on What’s the Value of My Home. To receive available homes for sale, click on Send Me New Listings.

Related Posts

2013 First Half Real Estate Trends

How has Real Estate Started in 2013?

Over-Priced Fannie Mae Short Sales and Foreclosures

Boating in Phoenix Residential Lakes

Gilbert Home Search

$549,900 :: 1313 W WINDRIFT Way, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,183 sq ft
Lot Size: 3,921 sq ft
Added: 05/25/21, Last Updated: 08/01/21
Property Type: Single Family
MLS Number: 6241203
Community: The Islands
Tract: The Islands
The price of this listing was last reduced on 8/1/2021 by 4%
Status: Active


Wow!!!! WATERFRONT former Model Home, Beautifully designed open floorplan, Nice and bright natural light, with amazing lake views to enjoy! This home features Stunning Vaulted ceilings, elegant fireplace in Living room, 3 Awesome Bedrooms upstairs and 2.5 bathrooms, upgraded Kitchen with pull out cabinets drawers, smooth stove top, granite countertops and Huge walk in pantry. Backyard includes putting green, private SPA, Good size Covered Patio and custom built in BBQ Grill with bar. Lots of storage and an Extended 2 car garage. Very Desirable community in The Islands, offering Fishing,boating, parks and recreation for you and your Family!

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/!


$580,000 :: 1442 W CORAL REEF Drive, Gilbert AZ, 85233

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3 beds, 3 baths
Home size: 2,289 sq ft
Lot Size: 1,743 sq ft
Added: 06/18/21, Last Updated: 07/28/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6239386
Community: TOWNHOMES ON CORAL REEF
Tract: TOWNHOMES ON CORAL REEF
The price of this listing was last reduced on 7/28/2021 by 2%
Status: Active


Lake front property! Bring your paddle boats, pontoons, kyaks, paddle boards, canoes and troll around in these beautiful water. This fantastic water front property is waiting for you to call it home. Beautiful views from your patio and balcony. Travetine floors, master travertine shower and surrounds- spacious bedrooms, open greatroom and kitchen with beautiful granite counters and island. Den downstairs and loft upstairs.

Listed with HomeSmart Lifestyles


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


$1,282,461 :: 1452 E BLUE RIDGE Way, Gilbert AZ, 85298

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4 beds, 3.5 baths
Home size: 3,949 sq ft
Lot Size: 12,633 sq ft
Added: 07/28/21, Last Updated: 07/28/21
Property Type: Single Family
MLS Number: 6270680
Community: HAMSTRA DAIRY PHASE 1 REPLAT
Tract: HAMSTRA DAIRY PHASE 1 REPLAT
Status: Active


Located in the master-planned community of Waterston with a 7-acre Central Park and Lake this single story MODEL home features black gourmet stainless steel appliances with a G.E. 36'' gas cooktop, double wall ovens, professional 36'' vented hood, microwave, dishwasher and refrigerator, granite and quartz kitchen countertops, designer kitchen backsplash, Timberlake Portfolio Lusanne maple truffle kitchen cabinets, oversized kitchen island, two-tone interior paint, 12' ceiling at great room, walk-in shower at primary bath, stackable washer and dryer at primary suite closet, slider at gameroom, exterior fireplace in courtyard, exterior French door at primary suite, professionally landscaped front and back, pavers at driveway and porch and so much more. Close of escrow on or before 11/15/21

Listed with Tri Pointe Homes 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/!


$1,290,017 :: 1438 E BLUE RIDGE Way, Gilbert AZ, 85298

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4 beds, 3.5 baths
Home size: 3,382 sq ft
Lot Size: 12,633 sq ft
Added: 07/27/21, Last Updated: 07/27/21
Property Type: Single Family
MLS Number: 6270429
Community: HAMSTRA DAIRY PHASE 1 REPLAT
Tract: HAMSTRA DAIRY PHASE 1 REPLAT
Status: Active


Located in the master-planned community of Waterston with a 7-acre Central Park and Lake this single story MODEL home features gourmet stainless steel appliances with a G.E. 36'' gas cooktop, double wall ovens, professional 36'' vented hood, microwave, dishwasher and refrigerator, granite kitchen countertops, designer kitchen backsplash, extended kitchen nook, Kinsdale Boulder kitchen cabinets with 42'' stacked uppers, oversized kitchen island, two-tone interior paint, extended bedrooms 2 and 3, 12' ceiling at great room, generation suite with a kitchenette, frameless walk-in shower at primary bath, 90 degree slider at extended nook and great room, professionally landscaped front and back, pavers at driveway and front porch and so much more. Close of escrow on or before 11/15/21.

Listed with Tri Pointe Homes 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/!


$550,000 :: 457 S Marina Drive, Gilbert AZ, 85233

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3 beds, 3 baths
Home size: 2,156 sq ft
Lot Size: 3,921 sq ft
Added: 07/16/21, Last Updated: 07/16/21
Property Type: Single Family
MLS Number: 6257231
Community: The Islands of Gilbert AZ
Tract: The Islands of Gilbert AZ
Status: Active


Imagine your morning coffee accompanied by a peaceful lake view! This 3 Br. waterfront home inside a GATED COMMUNITY was modified at construction for extra space, and seamlessly blends indoor and outdoor living. An open greatroom has vaulted ceiling, dramatic staircase, and overlooks the patio with a backdrop of cool, crisp water. In addition to a view balcony, the master suite sports a glass-enclosed fireplace, large bath and walk-in closet. The kitchen is a cook's delight, smart and nicely appointed with black tile surfaces and stainless appliances, and is open to the family room with fireplace. Plank tile flooring, plantation shutters, oversized second bedroom, and two newer A/Cs in 2018. HOA fee is reasonable and includes front and back yard maintenance, community pool, parks.

Listed with Arizona Elite 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/!


$530,000 :: 521 S Marina Drive, Gilbert AZ, 85233

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3 beds, 3.5 baths
Home size: 2,425 sq ft
Lot Size: 4,356 sq ft
Added: 06/12/21, Last Updated: 07/15/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6248280
Community: CORAL POINTE
Tract: CORAL POINTE
The price of this listing was last reduced on 7/6/2021 by 4%
Status: Active


Beautiful lake views from this waterfront home in the gated community of The Islands a" enjoy the lake views from the living room, master bedroom & upstairs bedroom! It features an open split floor plan with master bedroom downstairs, vaulted ceiling, 10 year old AC, 10 year old roof & 5 year old boat deck. The kitchen is open with lots of cabinet space, great countertop space, well taken care of appliances, breakfast bar & large pantry space! The master bedroom is large enough for a king bed to fit comfortably. Separate loft can be used as office space with built-ins. Enjoy the 180 degree lake views from the backyard deck & private dock. Front yard landscaping is included with HOA! Great location for an owner occupant, family, rental or winter visitor.

Listed with North & Co


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


$3,500,000 :: 1502 E TREASURE COVE Drive, Gilbert AZ, 85234

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8 beds, 8 baths
Home size: 6,781 sq ft
Lot Size: 33,542 sq ft
Added: 06/25/21, Last Updated: 06/25/21
Property Type: Single Family
MLS Number: 6256331
Community: WEST LAKE ESTATES
Tract: WEST LAKE ESTATES
Status: Active


Welcome to the rarest one-of-a-kind GEM on Treasure Cove located in the coveted & prestigious GATED West Lake Estates! This unique estate is located on 2 waterfront lots with the most STUNNING expansive views of the lake--and this exquisite ESTATE has recently been completed remodeled! This amazing estate boasts: over 6700 square feet of the finest luxury and superior quality finishes with 8 bedrooms and 8 baths, a large 3 car garage, an elevator, Gourmet Chef's Kitchen--indoors and out--home theater, game room, 50 bottle wine room with humidor, impressive outdoor patio with a huge gazebo that has misting and heating, firepits, impressive 36,000 gallon salt water pool with swim up bar.. the views & outdoor living are like living in the finest 5 star resort! Click ''more'' for further

Listed with Cooper Premier Properties 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/!


$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/!


 

 

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