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

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Gilbert Home Search

$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/!


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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,

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$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%
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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
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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%
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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.

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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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