Phoenix Shadow Inventory Real Estate Numbers

Just because they print it does it make it true?

Congratulations Miami, the 2011 NBA champions! – NOT.  Here it is in print from a Florida newspaper.  I guess they never got the memo or checked the score board.  Just because it gets printed or makes its way onto the internet, does that make it true?  That’s the same way I feel about Phoenix area shadow inventory.  Some of the confusion lies in the definition of shadow inventory.  Obviously,  shadow inventory includes properties that have gone back to the lender but are not on the market.  Some also consider homes that have received a Notice of Trustee Sale with a scheduled auction date.  Some add to those numbers loans that are seriously delinquent which is 90+ days behind.  As you can see, the definition will affect the level of shadow inventory cited by the various experts. There’s also the issue that real estate is local and national commentaries cannot be relevant to individual markets?  Many have stated that shadow inventory is out of control and will contribute to a foreclosure Tsunami.  Now let’s get the facts for the Phoenix area.

Fuel for the foreclosure fire – pending foreclosures and Phoenix shadow inventory levels

Understanding shadow inventory levels is important because it is a leading indicator of the number of homes that will eventually become foreclosure or lender owned properties which sell at discounts and keep home values from rising.   When a  lender deems that a home owner falls sufficiently delinquent, a notice of trustee sale is issued advising the homeowner that the property will be sold at a trustee sale auction in 90 days.  The graph to the right shows the number of outstanding notice of trustee sale notices with a future auction date for Maricopa county since 2007.  A lower number is indicates that fewer properties will go to auction and become lender owned foreclosures.   A historical perspective helps identify trends and understand the future supply of lender owned foreclosures.   The 2011 trend line is represented by the pink line and shows a favorable trend downwards.

Components of Phoenix Shadow Inventory

The definition of shadow inventory is will vary and depends on which components are included.   I like the definition used by The Cromford Report shown by the graph to the left.  The bottom red portion are active foreclosure or REO listings being marketed in the MLS.  At the beginning of November 2010, the active lender owned foreclosures were in excess of 6,000.   Nine months later at the beginning of August 2011, the number has been cut by more than half, to approx. 2,800 properties.    The next component, the Unlisted REO’s, (in blue) are those that have reverted to the bank at auction and are in the process of being prepared to go on the market.  Interestingly, this component remains fairly constant between 7,000 – 8,000 properties.  The fact that Arizona is a non-judicial foreclosure state helps keep this level lowered than if Arizona was judicial foreclosure state.   The purple portion represents pending foreclosure or properties with a notice of trustee sale.  This component has decreased from 35,000 to 21,000, or 40%.   These properties may be sold as short sales, achieve a loan modification,  purchased at auction or eventually revert back to the beneficiary or lender.   A diminishing level of pending foreclosures will result in fewer foreclosured /lender-owned/REO  properties later on.  The Pending Foreclosures graph above shows a very positive trend for this category since its peak at the end of 2009.

The other component that would be interesting is the number of homes that have stopped paying their mortgage but have not received a notice of trustee sale.

Now you have it, the break down of shadow inventory, what it is and the current trends.  If you are waiting for the next wave of foreclosures, it may be a very long time unless there are some fundamental changes.  And remember just because you see it something in print doesn’t mean it is necessarily so.  Get the real data and understand the trends.

If you would like more information on any homes for sale feel free to call or e-mail or  receive updated listings for your favorite community.

Waterfront Bank -Owned Homes

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$430,000 :: 2402 E 5TH Street #1579, Tempe AZ, 85287

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2 beds, 2.5 baths
Home size: 1,161 sq ft
Lot Size: 1,307 sq ft
Added: 07/04/22, Last Updated: 07/04/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6419436
Community: VILLAGIO AT TEMPE CONDOMINIUM AMD
Tract: VILLAGIO AT TEMPE CONDOMINIUM AMD
Status: Active


This gorgeous 2 bedroom, 2.5 bathroom townhome features a 1 car garage and is part of a gated community of Villagio at Tempe, near ASU. This home has an open floor plan and vaulted ceilings. Kitchen has granite countertops, spacious pantry and breakfast bar. There is a half bathroom downstairs and upstairs has two full master bedrooms. In the garage, you'll find built-in cabinets. This community has beautiful, well maintained common areas and two community pools. This home is a must see!

Listed with My Home Group 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/!


$879,999 :: 14043 N 64 Drive, Glendale AZ, 85306

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4 beds, 3 baths
Home size: 3,686 sq ft
Lot Size: 51,837 sq ft
Added: 07/03/22, Last Updated: 07/03/22
Property Type: Single Family
MLS Number: 6428411
Community: See meets and bounds
Tract: See meets and bounds
Status: Active


Classic beauty, old world charm!This Original owner property has been in the family since 1914, they once owned the entire square mile. This house was custom built in 1981 and has all the luxuries that era could offer. You're welcomed by the huge wrought iron gates entering the circular driveway. Classic dignity of a round turret welcomes you into the circular atrium. Downstairs is the master, then a spiral staircase leads up to the 2 story with a huge balcony overlooking the backyard. Fine custom stone work and dark hardwoods adorn this antique filled home. Very large guest house out back, huge barn with horse stables, on over one acre irrigated lot. The roof and ACs are both new in 2011. ''Swim Spa'' out back can stay. All Furnishings are available in or out of escrow. Must sell

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/!


$629,900 :: 3771 E DUBLIN Street, Gilbert AZ, 85295

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4 beds, 2.5 baths
Home size: 2,465 sq ft
Lot Size: 6,970 sq ft
Added: 06/30/22, Last Updated: 07/01/22
Property Type: Single Family
MLS Number: 6412900
Community: Bella Vista
Tract: Bella Vista
Status: Active


Beautiful, large 4 Bedroom plus Den (with built in desk and cabinets) has it all, including 2.5 baths, eat-in kitchen, granite countertops, separate dining room, and a large backyard including Pebble-Tec Pool with Waterfall. Wired for surround sound in Family Room & Patio. Fresh interior paint and exterior (pop-outs and fascia) paint. Fantastic location with Top Tier A+ Schools. Close to parks, the 202 Freeway and San Tan Village Mall.

Listed with JK 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/!


$445,000 :: 3435 W CREST Lane, Phoenix AZ, 85027

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3 beds, 2 baths
Home size: 1,671 sq ft
Lot Size: 8,712 sq ft
Added: 06/07/22, Last Updated: 07/01/22
Property Type: Single Family
MLS Number: 6411189
Community: TERRACINA
Tract: TERRACINA
The price of this listing was last reduced on 7/1/2022 by 1%
Status: Active


PRE-FORECLOSURE IN GREAT CONDITION! IN SEARCH OF A CASH BUYER AND QUICK CLOSING! Here's your opportunity! Well loved & maintained home in a quiet cul-de-sac w/front views to Adobe and Dixie Mountain. Tons of hiking/riding trails & recreation areas out your front door including; Paseo Highlands Park, Victory Lane Sports Park, Deem Hills Recreation Area, Phoenix Sonoran Preserve, & Adobe Mountain Park, just to mention a few. Deer Valley Airport & Norterra shopping/restaurant district is so close you will never run out of things to do! All of this with easy access to the 101 and I-17! Flooring is all tile, laminate hardwood except for 1 bedroom. Open kitchen. Great room has ample room w/fireplace & arcadia door to your backyard oasis featuring a pebble tech pool w/ water feature

Listed with eXp 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/!


$370,000 :: 25760 W VALLEY VIEW Drive, Buckeye AZ, 85326

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3 beds, 2 baths
Home size: 1,341 sq ft
Lot Size: 8,277 sq ft
Added: 07/01/22, Last Updated: 07/01/22
Property Type: Single Family
MLS Number: 6427296
Community: ENCANTADA ESTATES
Tract: ENCANTADA ESTATES
Status: Active


Beautiful home in the city of buckeye. Ready for you to make it your own home. Won't last. Easy to show .

Listed with Exzel 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/!


$399,000 :: 16120 W KENDALL Street, Goodyear AZ, 85338

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3 beds, 2 baths
Home size: 1,522 sq ft
Lot Size: 7,841 sq ft
Added: 07/01/22, Last Updated: 07/01/22
Property Type: Single Family
MLS Number: 6427155
Community: SARIVAL VILLAGE
Tract: SARIVAL VILLAGE
Status: Active


Adorable 3 bed/2 bath home with new A/C in 2021!! Perfect for investment or first home. Located in a thriving area of Goodyear. Enjoy a deluxe kitchen with granite counters and a black refrigerator(in the garage)! Island and Dining Room Hutch stays with the home. Separate formal Living/Dining Room and Family Room. Open floorplan with Kitchen opening to Family Room. Sliding door to backyard. Primary suite has private bath with double sinks. 2 car garage with service door and water softener. Large backyard with RV gate and cement pad for your toys. Looking for a quick close. Don't miss out!

Listed with Keller Williams Elite


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


$440,000 :: 21341 W BOBWHITE Way, Wittmann AZ, 85361

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3 beds, 2 baths
Home size: 1,622 sq ft
Lot Size: 54,450 sq ft
Added: 06/22/22, Last Updated: 06/30/22
Property Type: Single Family
MLS Number: 6411404
Community: Metes and Bounds
Tract: Metes and Bounds
Status: Active




Listed with eXp 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/!


$524,000 :: 714 S 118TH Lane, Avondale AZ, 85323

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4 beds, 3 baths
Home size: 3,050 sq ft
Lot Size: 7,841 sq ft
Added: 06/21/22, Last Updated: 06/30/22
Property Type: Single Family
MLS Number: 6421294
Community: GLENHURST
Tract: GLENHURST
The price of this listing was last reduced on 6/30/2022 by 4%
Status: Active


Come see this Spacious home located in the Glenhurst Community. The home is 3050 sqft and sits on a 7803 sqft lot. Tons or space throughout the home. On the 1st floor you will find the main living room a family room and a beautifully updated kitchen with an island, quarts countertops and White Cabinets. The 4th bedroom and a full bathroom is also located on the 1st floor, perfect for guest. On the 2nd floor you will find the Primary bedroom along with 2 large second and third bedrooms, each bedroom comes with a generous size walk in closets. The 2nd floor also has a huge living area that can be anything you want it to be. The home has a 3 car garage and RV gate. The Glenhurst Subdivision also has a community pool for you to enjoy with your friends and family.

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/!


$265,000 :: 10410 N CAVE CREEK Road #1008, Phoenix AZ, 85020

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2 beds, 1.75 baths
Home size: 1,082 sq ft
Lot Size: 1,307 sq ft
Added: 06/23/22, Last Updated: 06/30/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6419844
Community: THE POINTE RESORT CONDO AT TAPATIO CLIFFS
Tract: THE POINTE RESORT CONDO AT TAPATIO CLIFFS
The price of this listing was last reduced on 6/30/2022 by 5%
Status: Active


2 BEDROOM, 2 BATHROOM CONDO AT THE POINTE AT TAPATIO CLIFFS RESORT. LARGE BEDROOMS. OPEN CONCEPT -GREAT ROOM TO KITCHEN AND DINING. LARGE COVERED PATIO. OWNER'S SUITE HAS WALK-IN CLOSET, DOUBLE SINKS, SEPARATE TUB & SHOWER, AND PATIO ACCESS. LAUNDRY LOCATED IN UNIT. ALL APPLIANCES INCLUDED. FIREPLACE. ASSIGNED COVERED PARKING.

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/!


$284,900 :: 1126 N 25TH Place, Phoenix AZ, 85008

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3 beds, 1.5 baths
Home size: 1,750 sq ft
Lot Size: 13,504 sq ft
Added: 06/30/22, Last Updated: 06/30/22
Property Type: Single Family
MLS Number: 6426616
Community: ELSINORE
Tract: ELSINORE
Status: Active


Don't miss the opportunity to own this 3 bed & 1.5 bath home near Roosevelt Row! Located right off Loop 202 and I10, this home is nestled in the middle of the valley and is close to everything. This is a solid block home with large front porch, swimming pool, large kitchen, spacious bedrooms, covered patio, and tons of potential for remodeling. The attic space could easily be converted into a man cave or additional bedroom. The detached garage is a perfect solution for a home office, additional covered parking, or separate casita. The lot is enormous at just over 13K square feet and offers desirable R-3 zoning. Endless possibilities for this unique home with lots of space to hang out & the potential to create your own private oasis. Hurry! Schedule a showing before it's gone!

Listed with American Allstar 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/!


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