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

$475,000 :: 1248 N PALMSPRINGS Drive, Gilbert AZ, 85234

3 beds, 2.5 baths
Home size: 2,083 sq ft
Lot Size: 6,534 sq ft
Added: 05/27/18, Last Updated: 05/27/18
Property Type: Single Family
MLS Number: 5772091
Community: LANDING 2 AT VAL VISTA LAKES L
Tract: LANDING 2 AT VAL VISTA LAKES L
Status: Active


SPECTACULAR REGATTA LAKE VIEW! A former model home w/3BR+loft. Casual elegance in LR/DR with plantation shutters, vaulted ceilings & a gracious stairway. Family room boasts a fireplace. Kitchen has solid surface counters. Relax on the 2nd story balcony w/awsome views of the lake. All new upgraded carpet, large tile & light fixtures. The garage has professionally installed epoxy floors and cabinets. Backyard features heated play pool and flagstone. Enjoy the ammenities which include the multi-million dollar clubhouse, heated pool, sandy beach, tennis, racquetball, weight rm., banquet areas, plus 4 lakes and many walking paths w/low HOA. Great Gilbert schools.

Listed with LRA Real Estate 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/!


$553,500 :: 362 S BAY SHORE Boulevard, Gilbert AZ, 85233

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4 beds, 2.5 baths
Home size: 3,211 sq ft
Lot Size: 6,534 sq ft
Added: 02/17/18, Last Updated: 05/26/18
Property Type: Single Family
MLS Number: 5725089
Community: DESERT SHORES AT THE ISLANDS
Tract: DESERT SHORES AT THE ISLANDS
The price of this listing was last reduced on 5/26/2018 by 1%
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 water is 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/!


$575,000 :: 1002 S CROWN KEY Court, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 2,592 sq ft
Lot Size: 10,018 sq ft
Added: 05/25/18, Last Updated: 05/26/18
Property Type: Single Family
MLS Number: 5771648
Community: KEY HARBOR LOT 1-71 TR A-C
Tract: KEY HARBOR LOT 1-71 TR A-C
Status: Active


DREAMS FOR SALE! Exceptional and impeccably kept 3 bedroom/Den , single level Home in the highly desired subdivision of The Islands! Pristine Waterfront lot with multiple outdoor entertainment areas. NEW ROOF 2018. Neutral color Decor. Updated plank-tile flooring with upgraded carpet. 2 Fireplaces both indoor/outdoor. 2 Bay Windows @ Kitchen & Master Bedroom. Modern Gourmet Kitchen with Black Appliances. With acceptable offer, Seller is willing to credit buyer $2500 toward an appliance pkg. Vaulted ceilings and beautiful spacious Floorplan. Double gate with parking for ''Boats/Toys''. 3 car garage with workbench and storage. This home as a single level on the water w/ 3car G, RV parking etc does not come available very often. Located just a few miles from DT Gilbert.Must See Photo Gallery

Listed with Re/Max Infinity


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


$355,000 :: 517 S MARINA Drive, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,003 sq ft
Lot Size: 4,356 sq ft
Added: 05/25/18, Last Updated: 05/25/18
Property Type: Condo/Townhouse/Co-Op
MLS Number: 5771244
Community: CORAL POINT TRACT A-K
Tract: CORAL POINT TRACT A-K
Status: Active


Picture yourself fishing off your personal doc or tying your boat off right behind your home. If this is your dream, then this is your home. Upon entering notice the soaring 26ft ceilings in your open and airy living room with 2 large glass sliding doors that open onto a tile patio compete with 2 fire pits, a pond, an in ground spa and amazing views of the lake. This charming home has an updated kitchen with white cabinets, granite counter tops, a granite backsplash and once again beautiful views. Upstairs the large master suite includes his and hers closets, vaulted ceilings and a deck overlooking the lake. Don't miss out on the chance to live in your own ''Island'' paradise.

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/!


$568,000 :: 432 S BAY SHORE Boulevard, Gilbert AZ, 85233

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4 beds, 2.5 baths
Home size: 2,521 sq ft
Lot Size: 7,405 sq ft
Added: 05/24/18, Last Updated: 05/24/18
Property Type: Single Family
MLS Number: 5770856
Community: HARBOR POINT LOT 1-78 LAKE EAS
Tract: HARBOR POINT LOT 1-78 LAKE EAS
Status: Active


Beautiful remodel on the water in the Islands! New wood floors greet you as you open the door to the living and dining areas. It then flows into the kitchen & greatroom which overlook the sparkling pool, lake & grassy backyard. The kitchen has stainless appliances & plenty of counter space including a perfect area for a coffee bar! Upstairs is the master with a balcony with views of the lake. The master has a large ensuite bathroom and large walk in closet. The secondary bedrooms are also upstairs and are all a generous size. The second full bath is adjacent to the other bedrooms. The home also has a 3 car garage! New carpet, new wood floor, new lighting, new kitchen design, newly resurfaced pool, freshly painted inside and out and much more! This home is move in ready!

Listed with Coldwell Banker Residential Brokerage


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 :: 1825 E MONARCH BAY Drive, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 3,140 sq ft
Lot Size: 11,761 sq ft
Added: 04/23/18, Last Updated: 05/23/18
Property Type: Single Family
MLS Number: 5755855
Community: CRYSTAL SHORES AT VAL VISTA LA
Tract: CRYSTAL SHORES AT VAL VISTA LA
The price of this listing was last reduced on 5/23/2018 by 5%
Status: Active


Must see this beautiful and updated home with dramatic vaulted ceilings on the 'big' lake in the much sought after community of Val Vista Lakes*Enter to living room and separate dining room*Island kitchen has been remodeled with stainless steel appliances, gas stove, beautiful cabinets, walk in pantry and eating area*Family room has marble gas fireplace*Luxury master suite boasts remodeled bathroom with double head shower,Jacuzzi tub, double sinks, and closet organizers*Fabulous yard has outdoor kitchen with sink, bar and grill, *Beautiful pebble tec pool and separate spa with new heater*High pressure mister systems on downstairs patio and upstairs deck*Val Vista Lakes community includes 4 lakes, a swimming lagoon, junior Olympic pool, Jacuzzi*The clubhouse includes cardio room,

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/!


$479,000 :: 433 S LAKE MIRAGE Drive, Gilbert AZ, 85233

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4 beds, 3.5 baths
Home size: 2,593 sq ft
Lot Size: 5,227 sq ft
Added: 04/06/18, Last Updated: 05/19/18
Property Type: Single Family
MLS Number: 5747954
Community: LAKE MIRAGE LOT 1-38 TR A-I
Tract: LAKE MIRAGE LOT 1-38 TR A-I
The price of this listing was last reduced on 5/19/2018 by 2%
Status: Active


One of the most incredible view lots in The Islands with soaring ceilings and windows to appreciate the one-of-a-kind long lake view in multiple directions. This beautiful home comes with designer kitchen, granite countertops, travertine flooring, and upgraded finishes thought. Two masters, one up and one downstairs equipped with two vanities. Relax outside while enjoying the tranquil water or enjoy an active lifestyle community with restaurants and shopping within walking distance. Exterior includes built in dock, entertaining fridge, and second story patio with views galore.

Listed with Revelation 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/!


$519,000 :: 1252 N PALMSPRINGS Drive, Gilbert AZ, 85234

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4 beds, 2.5 baths
Home size: 2,714 sq ft
Lot Size: 6,534 sq ft
Added: 05/18/18, Last Updated: 05/19/18
Property Type: Single Family
MLS Number: 5768551
Community: LANDING 2 AT VAL VISTA LAKES L
Tract: LANDING 2 AT VAL VISTA LAKES L
Status: Active


MAGNIFICENT LAKE FRONT HOME! Remodeled Four Bedroom Home with Formal Living & Dining Rooms with tile flooring and granite stairway to upstairs. Outstanding Lake views from all windows and has balcony off master bedroom overlooking the lake. The Kitchen features granite counter tops with upgraded cabinets, a walk-in pantry and island with breakfast bar. The spacious master suite features a private balcony exit, full bath, double sinks, separate tub and shower, and large walk-in closet. The grassy backyard includes an extended covered patio overlooking the Lake! The large 2 1/2 car garage has epoxy flooring. Enjoy the Val Vista Lakes Clubhouse, workout room, heated pool, sandy beach lagoon, lighted tennis courts, racquetball, waterfalls, community activities, fishing, boating!

Listed with ProSmart 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/!


$480,000 :: 542 N MONDEL Drive, Gilbert AZ, 85233

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4 beds, 3 baths
Home size: 2,913 sq ft
Lot Size: 8,712 sq ft
Added: 01/29/18, Last Updated: 05/18/18
Property Type: Single Family
MLS Number: 5715811
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
The price of this listing was last reduced on 5/18/2018 by 2%
Status: Active


WOW! Honey stop the car, this is a great location close to schools, parks & shopping. A highly desirable area with a ski lake. This home is on the water with a fountain you can see from all your rear facing windows. 4 bedroom with one bedroom downstairs & a full bath downstairs, formal living & dining, Gourmet kitchen with granite counter tops open to the great room,3 bedrooms upstairs & loft, tile in all the right spots. Huge covered patio with barbecue great views to enjoy all year long. 2 car garage with cabinets, new water heater & dishwasher and fresh paint. Truly a must see, it won't last long.

Listed with Southwest Mountain 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/!


$1,085,000 :: 1506 E TREASURE COVE Drive, Gilbert AZ, 85234

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5 beds, 4.5 baths
Home size: 5,706 sq ft
Lot Size: 17,859 sq ft
Added: 02/23/18, Last Updated: 05/17/18
Property Type: Single Family
MLS Number: 5727612
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 5/17/2018 by 4%
Status: Active


Beautiful Waterfront Home! Luxury living in gated WestLake Estates close to the Val Vista Lakes Clubhouse! The home has 3 bedrooms on the main floor (2 w/views of the lake), all connected to baths, the grand master suite is on the second floor with a private balcony facing the lake, large walk-in closet, luxury master bath & fireplace. Walkout basement suite is perfect for guests w/an exit to the backyard, bedroom, full bath, fireplace & kitchenette. the large kitchen has lots of cabinet & counter space, built-in refrig/freezer, gas cook-top, breakfast nook looking out to the beautiful backyard & an exit. Formal living & dining along with large family room including a floor-to-ceiling fireplace w/views to the amazing backyard. Negative edge diving pool, outdoor kitchen, gas firepit etc.

Listed with Re/Max Infinity


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