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

$1,990,000 :: 193 N SKI Court, Gilbert AZ, 85233

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6 beds, 7 baths
Home size: 6,700 sq ft
Lot Size: 20,037 sq ft
Added: 09/20/17, Last Updated: 09/20/17
Property Type: Single Family
MLS Number: 5662648
Community: CRYSTAL POINT ESTATES AMD LOT
Tract: CRYSTAL POINT ESTATES AMD LOT
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/!


$769,000 :: 1901 E CYPRESS TREE Drive, Gilbert AZ, 85234

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5 beds, 4.5 baths
Home size: 4,645 sq ft
Lot Size: 11,325 sq ft
Added: 07/05/17, Last Updated: 09/19/17
Property Type: Single Family
MLS Number: 5629011
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
The price of this listing was last reduced on 8/26/2017 by 4%
Status: Active


PRICED more than $20K lower than appraised value to allow for more upgrades. WATERFRONT Home in Gated neighborhood of Val Vista Lakes with a fully finished Basement- 4,645 sqft, 5 bedrooms, 4 1/2 bathrooms, huge office with a separate entry. Second story features 2 of the bedrooms plus the Master Suite that offers an additional sitting/TV room and a workout room with a separate entry into the Master Bath. The main level of this beautiful home boasts the elegant Living Room with a 2-way, gas fireplace; the Kitchen with All New Stainless Appliances; the Breakfast Room; a closed in Patio Area with access to the Living Room and the Dining Area; a half bathroom; 1 Bedroom with a private 3/4 bathroom; and the Laundry Room. Fully Finished Basement has 1 bedroom, 3/4 Bathroom,

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/!


$399,999 :: 1341 W WINDRIFT Way, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,017 sq ft
Lot Size: 4,356 sq ft
Added: 09/15/17, Last Updated: 09/19/17
Property Type: Single Family
MLS Number: 5661079
Community: SANDCASTLE VILLAGE LOT 1-31 TR
Tract: SANDCASTLE VILLAGE LOT 1-31 TR
The price of this listing was last reduced on 9/18/2017 by 3%
Status: Active


This North/ South exposure home has been fully updated and offers 3 bedrooms that all have a water view. 2.5 bathrooms that have granite and under-mount sinks. The entire first floor has new wood-look tile and a wood-burning fireplace with travertine stacked stone. The kitchen offers all new soft close cabinets including 2 lazy Susan's and all lower cabinets are drawers for ease of use. The kitchen has brand new granite countertops, subway tile backsplash and a garden window for growing fresh herbs. All brand new stainless steel appliances. This home offers a large pantry off the kitchen that measures 9 feet long by 5 feet deep. The laundry room has a beautiful granite countertop folding area and stainless steel hanging rack. Relax in your paved backyard or take a dip in the pool.

Listed with American Realty Brokers


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 :: 1849 E WILLOW TREE Court, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 3,445 sq ft
Lot Size: 12,196 sq ft
Added: 08/30/17, Last Updated: 09/18/17
Property Type: Single Family
MLS Number: 5653543
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
Status: Active


WOW! This is it! ASTOUNDING VIEWS from almost every room- Kitchen, Family Room, Dining Room, Living Room and Master Bedroom! Enjoy Grand Cathedral Ceilings, gorgeous TRAVERTINE flooring, NEWER BRAZILIAN HARDWOOD floors,GAS FIREPLACE in Family Room, GOURMET KITCHEN with CUSTOM KITCHEN CABINETS, WINE RACK, built in OVEN, COOK TOP too! IMPECCABLY MAINTAINED! FIRST FLOOR MASTER BEDROOM with SITTING area. Master Bathroom has separate shower and JETTED TUB with double sinks. TWO Guest Bedroom downstairs with FULL Bathroom. You'll love the outdoor with INFINITY pool, Spa and Fire Pit too! Close to Route 60 & LOTS of STORES. SEE VIRTUAL TOUR IN PHOTO SECTION! ***OWNER WILLING TO SELL FURNISHING*** Enjoy an evening boat ride from your home on the lake to the Clubhouse!!Don't wait to enjoy the

Listed with Keller Williams Integrity First


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


$269,900 :: 212 W VERANO Place, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 1,691 sq ft
Lot Size: 4,791 sq ft
Added: 08/04/17, Last Updated: 09/17/17
Property Type: Single Family
MLS Number: 5642060
Community: LAGO ESTANCIA PARCELS 11,12 &a
Tract: LAGO ESTANCIA PARCELS 11,12 &a
The price of this listing was last reduced on 8/4/2017 by 2%
Status: Active


Come see this immaculate upgraded 3 BR home in the highly sought after Lago Estancia subdivision. This beautiful home has been redone from top to bottom. Upgrades include custom cabinetry throughout, granite counters in kitchen, media center, office, and both baths, custom walk-in shower in master, stainless steel appliances in kitchen, separate office with built in desk and cabinetry, dual pane windows, 3/4 '' hardwood and tile floors, custom paint, upgraded lighting, ceiling fans and plumbing fixtures throughout, water softener, dual attic access and lots of cabinetry in garage w/ insulated door. Outside you have an entertainers dream with a front courtyard, covered back patio w/ ceiling fan, lake views, built-in BBQ island,easy care landscaping, and a large heated hot tub with gazebo.

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/!


$525,000 :: 2003 E CATAMARAN Drive, Gilbert AZ, 85234

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3 beds, 3.25 baths
Home size: 2,970 sq ft
Lot Size: 12,196 sq ft
Added: 09/16/17, Last Updated: 09/16/17
Property Type: Single Family
MLS Number: 5661262
Community: REGATTA AT VAL VISTA LAKES
Tract: REGATTA AT VAL VISTA LAKES
Status: Active


Beautiful custom home with views down the lake ** Casita/office/guest room with bathroom and separate entrance ** Master bedroom downstairs ** Loft upstairs with beautiful lake views ** So many windows and walls of glass makes this home very bright ** Granite island kitchen with loads of cabinets abd eating area ** Large walk in closet in master suite ** Val Vista Lakes community enjoys 10 tennis courts, including pickelball, indoor racquetball courts, heated pool, heated spa, lagoon beach, kayaks and pedal boats for homeowners to use, workout room, cardio room, many events to enjoy and so much more ** There are four lakes for your boating and fishing pleasure ** This beautiful home is ready for your client to move in

Listed with Penfield 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/!


$975,000 :: 1125 N DATE PALM Drive, Gilbert AZ, 85234

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5 beds, 3 baths
Home size: 4,458 sq ft
Lot Size: 13,068 sq ft
Added: 09/14/17, Last Updated: 09/14/17
Property Type: Single Family
MLS Number: 5660217
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
Status: Active


Absolutely stunning semi-custom home in the Lakeside neighborhood in Val Vista Lakes where homes are going up to over $250/sqft. This completely remodeled home features the absolute best lake views that Val Vista Lakes has to offer, a professionally designed putting and pitching green, top of the line artificial grass backyard, stunning 12 person spa and pebble sheen pool that is wrapped with Marbella stone on the pool deck, built in gas and charcoal grills, amazing outdoor gas fire pit that overlooks the lake and pop-out tv for enjoying a game while sitting in the pool or on the patio. Inside you will fine a custom gourmet kitchen with double edge eco-quartz countertops, travertine tile and hardwood floors, plantation shutters and tinted and reflective windows for privacy and efficiency.

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/!


$239,900 :: 1678 E BRIDGEPORT Parkway, Gilbert AZ, 85295

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3 beds, 2.5 baths
Home size: 1,609 sq ft
Lot Size: 871 sq ft
Added: 09/12/17, Last Updated: 09/12/17
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5659124
Community: VAL VISTA CLASSIC PARCEL 1 CON
Tract: VAL VISTA CLASSIC PARCEL 1 CON
Status: Active


WATER FRONT 3 bedroom 2.5 bath property located in Gilbert! This stunning well kept home offers wood flooring, ceiling fans, neutral paint, and great views! Your show kitchen features granite counter tops, stainless steel appliances, and beautiful cabinets with plenty of storage space! Your laundry is located on the main floor with a linen closet. Your second floor is your family room, half bath, and kitchen, with the 3rd floor occupying your bedrooms and additional bathrooms. You are in a great community and great location! Close to the 202 freeway, San Tan Village Mall & Marketplace, TONS of shopping and restaurants all within a VERY SHORT drive or walk!! Stop by and view today!**Furniture available on a separate bill of sale.

Listed with Canam Realty 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/!


$550,000 :: 1233 W COVE Drive, Gilbert AZ, 85233

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5 beds, 2.5 baths
Home size: 3,209 sq ft
Lot Size: 8,712 sq ft
Added: 08/25/17, Last Updated: 09/09/17
Property Type: Single Family
MLS Number: 5651904
Community: HARBOR POINT LOT 1-78 LAKE EAS
Tract: HARBOR POINT LOT 1-78 LAKE EAS
The price of this listing was last reduced on 8/25/2017 by 4%
Status: Active


An Islands Paradise! A two story waterfront home; 2 docks provide easy access to the lake. Boat included at no cost/value and ''as-is''. Original owner had this home built in 1990. Deck off of an upper bedroom. Family room with gas fireplace is adjacent to the kitchen. Granite counters and backsplashes; all stainless steel appliances, 4 under-counter stools at the spacious breakfast bar. Tile floors in entire living, dining, kitchen and family room area. Carpet in the remainder of the home. Built in gas BBQ.

Listed with Erickson Realty Group L.L.C.


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


$890,000 :: 1414 E CORAL COVE Drive, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 4,055 sq ft
Lot Size: 15,245 sq ft
Added: 04/13/17, Last Updated: 09/09/17
Property Type: Single Family
MLS Number: 5590232
Community: WEST LAKE ESTATES LOT 1-40 TRA
Tract: WEST LAKE ESTATES LOT 1-40 TRA
The price of this listing was last reduced on 4/13/2017 by 5%
Status: Active


Exquisite highly desirable single level custom waterfront home in West Lake Estates*Beautiful entrance with gorgeous medallion flooring*Formal dining and living room*Coffered ceilings*Home office with plantation shutters*Large master suite with separate outdoor exit*2 sided gas fireplace to updated master bathroom with marble countertops, jetted tub, stone shower and huge master closet*Large custom kitchen with dual ovens, dual dishwashers, kitchen island, pull out shelves and walk in pantry*family room with stone floor to ceiling fireplace and peaceful views of the lake*Split floor*

Listed with Elite Desert 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/!