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

$569,000 :: 362 S BAY SHORE Boulevard, Gilbert AZ, 85233

Property Photo

Mls Icon

4 beds, 2.5 baths
Home size: 3,211 sq ft
Lot Size: 6,534 sq ft
Added: 02/17/18, Last Updated: 02/17/18
Property Type: Single Family
MLS Number: 5725089
Community: DESERT SHORES AT THE ISLANDS
Tract: DESERT SHORES AT THE ISLANDS
Status: Active


Please text or call for Full Video Virtual Tour. This gorgeous home has been professionally remodeled and it shows! Flagstone & wood throughout all areas! Beautiful Kitchen has upgraded Alder Cabinets, Granite Counters, & Stainless Steel Appliances! Open layout to family room features a wrap around wall system & Corner Granite Eichler Gas Fireplace, Surround Sound, & wall to wall windows w/ amazing views of the lake! Master Suite, has highly upgraded bathroom w/ Carerra Marble Counters, porcelain tile shower & much more! Backyard features flagstone throughout all patio areas, gazebo w/outdoor cook center, Lynx BBQ, gas firepit, waterfall, newly renovated oversized dock & breathtaking views of the wateris a private small park on the lake.

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/!


$325,777 :: 1353 W Crystal Springs Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

3 beds, 2.5 baths
Home size: 2,150 sq ft
Lot Size: 3,920 sq ft
Added: 01/30/17, Last Updated: 02/15/18
Property Type: Single Family
MLS Number: 5553974
Community: CORAL POINT
Tract: CORAL POINT
The price of this listing was last reduced on 5/31/2017 by 4%
Status: Active


Welcome home to this newly updated property in an exclusive gated waterfall communitylocated with The Gilbert Islands. This single family home but the HOA covers private streetmaintenance, exterior painting every 7 years, and maintenance of the beautiful waterfalls that thisneighborhood is famous for. Do you want to avoid yard work and still have gorgeous landscaping?Well, the HOA covers that, too! Home was recently updated with the new tile inside and on the backyard. You have to see it to appreciate it. Largest Former Model Home in the community. Buyer toverify all the material facts and information in regards to the size and shape of the property.

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/!


$344,500 :: 1326 W CLEAR SPRING Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

3 beds, 3 baths
Home size: 2,016 sq ft
Lot Size: 3,920 sq ft
Added: 02/15/18, Last Updated: 02/15/18
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5724005
Community: CORAL POINT REPLAT LOT 76-101
Tract: CORAL POINT REPLAT LOT 76-101
Status: Active


WATERFRONT LAKEFRONT LOT in a GATED COMMUNITY with a gorgeous backyard that backs up to the water. Sit out on the balcony and watch the beautiful waterfall. Home has bay windows in the dining room and kitchen. Awesome views from the dining room. Home has Two Zone Air Conditioners. Masterbath has separate Shower and Tub. Home flows smoothly and has great views. Also you can put your boat in the big lake and take it up to the community pool and spa.

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/!


$249,990 :: 1106 W EDGEWATER Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

2 beds, 2.5 baths
Home size: 1,198 sq ft
Lot Size: 2,178 sq ft
Added: 02/15/18, Last Updated: 02/15/18
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5723932
Community: COVE AT THE ISLANDS LOT 1-173
Tract: COVE AT THE ISLANDS LOT 1-173
Status: Active


Welcome to beautiful waterfront living in the Islands!! This two bedroom, two and one half bath townhouse is filled with an abundance of natural light. The home features a spacious family room with a soaring ceiling, fireplace, and impressive views of the water. The upstairs boasts of two spacious bedrooms, each with their own bathroom. The home offers a 2 car garage, water softener, and an open patio to enjoy the AZ evenings. All of this and recently painted on the interior! Great Gilbert location close to shopping, freeways, and entertainment. The home has tons of potential, and just needs your personal touches. Bring an offer today!

Listed with RE/MAX Alliance 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/!


$600,000 :: 1560 W COMMERCE Avenue, Gilbert AZ, 85233

Property Photo

Mls Icon

3 beds, 3 baths
Home size: 2,861 sq ft
Lot Size: 9,583 sq ft
Added: 01/12/18, Last Updated: 02/12/18
Property Type: Single Family
MLS Number: 5708539
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
Status: Active


WATER SKI LAKE FRONT PROPERTY!!, The only home on ARMLS on the water ski lake in the gated community of Play Del Rey. This update to the interior of this home was just completed, new flooring, SS appliances including a new built-in ice maker, trash compactor, microwave, smooth top range, built-in oven and dishwasher. New light fixtures and more. Amazing views across the back of the home of the negavite edge pool with hot tub, fire pots and built in BBQ perfect for entertaining. Ski year round right from your back yard with direct access to the lake from your backyard. 3 car garage with builtin cabinets for lots of storage.

Listed with Starwood 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/!


$1,899,000 :: 193 N SKI Court, Gilbert AZ, 85233

Property Photo

Mls Icon

6 beds, 7 baths
Home size: 6,700 sq ft
Lot Size: 20,037 sq ft
Added: 09/20/17, Last Updated: 02/09/18
Property Type: Single Family
MLS Number: 5662648
Community: CRYSTAL POINT ESTATES AMD LOT
Tract: CRYSTAL POINT ESTATES AMD LOT
The price of this listing was last reduced on 11/15/2017 by 5%
Status: Active


Beautiful Custom home on a private water ski lake. Water ski, tube, wakeboard, all out your back door. This home is the builders personal home. Custom in every way. Master Suite, plus office & guest bedroom all on the first floor. All bedrooms have their own full bathroom. Open great room with 21ft ceiling open wall of windows to the beautiful lake view. Granite counter tops, Top of the line stainless steel appliances, double ovens, warming draw, 6 burner Thermador Cook top, custom oak cabinets through out the home. Large center island with vegetable sink & eating area. Large covered patio with built in misters, built in BBQ & sink. Private boat dock with sink & small refrigerator. Large ski house to store tubes, wake boards, skis Large 5 car garage with built in cabinets, epoxy floor

Listed with The Hogan 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/!


$349,950 :: 731 S PUEBLO Street, Gilbert AZ, 85233

Property Photo

Mls Icon

3 beds, 3 baths
Home size: 2,308 sq ft
Lot Size: 10,454 sq ft
Added: 12/10/17, Last Updated: 02/08/18
Property Type: Single Family
MLS Number: 5697299
Community: Lago Estancia, WHISPER GROVE L
Tract: Lago Estancia, WHISPER GROVE L
The price of this listing was last reduced on 1/12/2018 by 3%
Status: Active


Just reduced!*Single level backs to lake (view fence)***Located on large pie-piece shaped lot with room for RV gate***Rare find! *** Modified floor plan was a 4 BR originally-now: 3br,3 ba**2 master suites on opposite sides- perfect for guest suite set up***SOLAR SYSTEM electricity installed and fully paid for and stays with the house***Swimming pool, 3 car garage, desert landscaping with mature trees***Vaulted ceilings and many plant shelves throughout**Formal LR & DR, FR, Breakfast nook,sky-lites in FR, washer/dryer/refrigerator **Newer stove and MW**The house needs cosmetic updates and is priced accordingly*** Great community with many water ponds, walkways/jogging paths, green belts, bridge, fountain***Convenient location near everything-shopping and restaurants...

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/!


$739,000 :: 794 S OCEAN Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

5 beds, 3.5 baths
Home size: 4,032 sq ft
Lot Size: 10,454 sq ft
Added: 02/02/18, Last Updated: 02/03/18
Property Type: Single Family
MLS Number: 5718416
Community: CATALINA BAY AT THE ISLANDS UN
Tract: CATALINA BAY AT THE ISLANDS UN
Status: Active


Lakefront stunning resort style living w/negative edge swimming pool. This home has been meticulously maintained & upgraded with the latest trends by the original homeowners. You will appreciate the hard wood flooring, the beautiful kitchen with white cabinets, granite counters & views of the lake. Enjoy entertaining family & friends in this gorgeous home that has views from the formal dining, kitchen, family room and master bedroom retreat. Master Bedroom is over sized & has a walk out deck. Master bathroom has soaking tub, recently remodeled shower, large walk-in closet with lots of shelving. The secondary bedrooms are Huge with walk in closets. Downstairs one bedroom down with bathroom great for guests or could be used as an office. Indoor/Outdoor living awaits as you!

Listed with Keller Williams Realty East Valley


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


$725,000 :: 1825 E CYPRESS TREE Drive, Gilbert AZ, 85234

Property Photo

Mls Icon

4 beds, 2 baths
Home size: 2,493 sq ft
Lot Size: 13,939 sq ft
Added: 02/01/18, Last Updated: 02/01/18
Property Type: Single Family
MLS Number: 5717278
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
Status: Active


SPECTACULAR WATERFRONT HOME!!! FORMER MODEL ON A PREMIUM LOT! Gated community. Sale price includes, furniture, appliances and the BOAT!!! Breathtaking view and amazing upgrades make this spacious and open home an exceptional deal. The kitchen boasts granite counter tops, sub-zero fridge (included), double oven and breakfast nook where you can enjoy a fabulous view of the lake. Patio area is ideal for entertaining. Family room has electric fireplace. CL water system throughout the home. Val Vista amenities are included in HOA dues and include club house, pool, beach area, tennis and weight room. Walking distance to elementary school and children's playground. COME LIVE A VACATION YEAR ROUND!!!

Listed with Briggs Realty 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/!


$579,500 :: 1161 W REDONDO Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

4 beds, 3 baths
Home size: 3,251 sq ft
Lot Size: 6,098 sq ft
Added: 11/08/17, Last Updated: 02/01/18
Property Type: Single Family
MLS Number: 5684874
Community: CATALINA BAY AT THE ISLANDS 2
Tract: CATALINA BAY AT THE ISLANDS 2
The price of this listing was last reduced on 11/8/2017 by 3%
Status: Active


WATERFRONT HOME with VIEWS from Multiple Rooms including the expanded master suite and its new private balcony. The amazing Views continue from the Great Room and its New Upgraded Fireplace. The Kitchen is Fully Upgraded with Granite Countertops/All New Stainless Steel Appliances and separate Wine Nook with Cooler. Granite and Tile upgrades continue in all 3 full bathrooms. This home has a great backyard for entertaining with large covered patio adjacent to sparkling pool and New Private Boat Dock with Putting Green. Spacious 3 Car Garage. Move in Ready with Spectacular Views. This Islands Home is just minutes away by boat or by walking to the community park which includes large shaded play ground, basketball and sand volleyball courts.

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/!