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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$349,900 :: 420 N 29TH Street, Phoenix AZ, 85008

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4 beds, 3 baths
Home size: 1,824 sq ft
Lot Size: 6,099 sq ft
Added: 09/17/21, Last Updated: 09/17/21
Property Type: Single Family
MLS Number: 6294222
Community: BALDWIN EST LOTS 1-95
Tract: BALDWIN EST LOTS 1-95
Status: Active


Come envision why this home would be a wonderful choice for both first time and experienced buyers alike. This residence is convenientlylocated in Phoenix with shopping, schools, freeways, sporting events, and medical facilities all within a short drive. The interior features awelcoming living room, and a user-friendly kitchen ideal for family gatherings and holiday celebrations. This home also features a livingspace with a separate entrance/exit, along with the 4th bedroom, and the 3rd bathroom. The front and backyards have lots of potential to bean exquisite outdoor space with an area large enough for pets to roam, children to play, and entertaining guests. This property is a mustsee! Do not delay making this your new home

Listed with RE/MAX Professionals


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


$465,000 :: 22704 N 106TH Lane, Peoria AZ, 85383

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4 beds, 2.5 baths
Home size: 2,595 sq ft
Lot Size: 13,068 sq ft
Added: 09/16/21, Last Updated: 09/16/21
Property Type: Single Family
MLS Number: 6294725
Community: ALTA VISTA ESTATES UNIT 3
Tract: ALTA VISTA ESTATES UNIT 3
Status: Active


Talk about a hot-rodder's dream home! This home has everything! Pool, RV Gate, no HOA, a shop already on property, one of the largest lots in the neighborhood with 2595 square feet and a beautiful landscape! All bedrooms are upstairs. Treated concrete floors and ceiling fans throughout.Not to be missed! Schedule a showing today!

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/!


$345,000 :: 723 S 232ND Avenue, Buckeye AZ, 85326

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3 beds, 2.5 baths
Home size: 1,735 sq ft
Lot Size: 6,099 sq ft
Added: 09/15/21, Last Updated: 09/15/21
Property Type: Single Family
MLS Number: 6293529
Community: SUNDANCE PARCEL 13
Tract: SUNDANCE PARCEL 13
Status: Active


This is your opportunity to own a rare 3 bed 2.5 bath home in the desirable Sundance 55+ Golf Course Community. 2 master bedrooms with shower & bath. One master bath has a shower and tub. Tile throughout except the bedrooms. Gorgeous kitchen with mahogany cabinets and corian countertops. Separate living room and family room to meet all your needs. Lots of storage throughout. Sundance Community offers a heated pool, spa, golf course, & more. Conveniently located off the I-10 freeway and close to restaurants and shopping. This home can be yours so don't wait!

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/!


$289,000 :: 1711 S 28TH Drive, Phoenix AZ, 85009

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4 beds, 2 baths
Home size: 850 sq ft
Lot Size: 7,406 sq ft
Added: 09/10/21, Last Updated: 09/15/21
Property Type: Single Family
MLS Number: 6277398
Community: PLATTS PLACE
Tract: PLATTS PLACE
Status: Active


Agent principal owner. 4 bedrooms 3 baths, Two units. Laminate wood flooring, Tiled bathroom and kitchen, Glass top electric Stove, New water heater. Well insulated.and three window AC units. One Mini Split AC unit in Living room. Hugh backyard fully fenced and gated. Guest house in the backyard for the comfort of your in-laws. Total privacy. Occupied, Tenant's rights.Pictures are coming soon.

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/!


$99,900 :: 57635 S 299TH Avenue, Gila Bend AZ, 85337

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3 beds, 2 baths
Home size: 1,120 sq ft
Lot Size: 217,800 sq ft
Added: 09/13/21, Last Updated: 09/13/21
Property Type: Mobile/Manufactured
MLS Number: 6293024
Community: Metes and Bound
Tract: Metes and Bound
Status: Active


House is being sold as is. This property has great potential and features a split floor plan with 3 bedrooms, 2 baths and vaulted ceilings. House is situated on approx. 5 acres of partially fenced property, septic tank, and city water.

Listed with Delex 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/!


$339,950 :: 4055 E CAROL Circle, Mesa AZ, 85206

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2 beds, 2 baths
Home size: 1,406 sq ft
Lot Size: 6,534 sq ft
Added: 09/08/21, Last Updated: 09/13/21
Property Type: Single Family
MLS Number: 6290634
Community: SUNLAND VILLAGE 5
Tract: SUNLAND VILLAGE 5
The price of this listing was last reduced on 9/13/2021 by 3%
Status: Active


Beautifully renovated property with 2-car garage and a low maintenance landscape on a nice quiet street close to either freeway in Mesa! You'll love the beautifully remodeled interior that boasts wood-look tile floors, a contemporary palette, delightful recessed lightings, new quartz counters, all new interior paint, custom tiled master shower, new 5'' base boards, new fixtures and the list goes on. Plush new carpet in all the bedrooms too! The large main bedroom offers sizable closets and a private bathroom with new fixtures and custom tile throughout. Cozy Arizona room with endless possibilities! This property also has a spacious backyard with a covered patio and a landscape awaiting your personal touch.

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/!


$410,000 :: 35771 W COSTA BLANCA Drive, Maricopa AZ, 85138

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5 beds, 2.5 baths
Home size: 2,724 sq ft
Lot Size: 5,663 sq ft
Added: 09/12/21, Last Updated: 09/12/21
Property Type: Single Family
MLS Number: 6292532
Community: TORTOSA NW PARCEL 10
Tract: TORTOSA NW PARCEL 10
Status: Active


Best Home in Neighborhood by Far, 2 Brand New A/C units, Real Grass and Working Outdoor Wood Fired Pizza Oven! New Owners will love entertaining in this backyard! The best professional rehabbers are presenting their lasted project. The last 4 properties broke records at our offices, so you will definitely want to check out this spectacular remodeled home in Tortosa. Luxurious plank tile throughout. Top of the line quartz countertops, new cabinets throughout with improved layout and modern hardware. Elegant gray scheme paint color with attractive blue tones. Completely remodeled bathrooms with new fixtures, modern mirrors and hardware. Beautiful kitchen island open to family room area. Fancy wine bar area. Highly desired floor plan with upstairs bedrooms and laundry room.

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/!


$450,000 :: 310 S 4TH Street #1001, Phoenix AZ, 85004

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2 beds, 2.5 baths
Home size: 1,426 sq ft
Lot Size: 1,743 sq ft
Added: 09/01/21, Last Updated: 09/01/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6287652
Community: SUMMIT AT COPPER SQUARE CONDOMINIUM 2ND AMD
Tract: SUMMIT AT COPPER SQUARE CONDOMINIUM 2ND AMD
Status: Active


Located in Downtown Phoenix, this 2 bedroom, 2.5 bath condo features an open floorplan, granite countertops & maple cabinets in the kitchen, split master bedroom floorplan with walk-in closet, granite countertops & double sinks in the master bath, laundry area inside the unit, floor to ceiling windows, private wraparound balcony featuring sunset & city views, walking distance to Downtown Phoenix & light rail station and so much more! A must see!

Listed with A.Z. & Associates


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


$2,856,000 :: 14531 E SIERRA ALEGRE Court, Fountain Hills AZ, 85268

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5 beds, 8 baths
Home size: 9,653 sq ft
Lot Size: 163,786 sq ft
Added: 07/22/21, Last Updated: 08/19/21
Property Type: Single Family
MLS Number: 6268282
Community: CRESTVIEW AT FOUNTAIN HILLS
Tract: CRESTVIEW AT FOUNTAIN HILLS
Status: Active


Luxury Contemporary Custom Estate designed to perfection on 3.8 Acres Located in a private GATED community on the Scottsdale border. Dramatic design & architecture w/soaring ceilings, HUGE open & split floorplan, oversized rooms, walls of windows w/automated glass wall off the family room w/fabulous & seamless extension of the indoor/outdoor living space! An absolute entertainers dream! MASSIVE family rm w/lrg wet bar & wine cellar open to the fabulous gourmet kitchen! Huge,5-car garage w/frosted glass doors, Elevator,Amazing master suite . w/FP,steam shower,huge master bathrm,& his/her closets.

Listed with JM 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/!


$430,000 :: 17575 W WATSON Lane, Surprise AZ, 85388

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4 beds, 2.5 baths
Home size: 2,425 sq ft
Lot Size: 6,099 sq ft
Added: 07/19/21, Last Updated: 08/18/21
Property Type: Single Family
MLS Number: 6266999
Community: SIERRA MONTANA PARCEL 10
Tract: SIERRA MONTANA PARCEL 10
The price of this listing was last reduced on 8/18/2021 by 4%
Status: Active


AMAZING 2 STORY HOUSE IN A PICTURESQUE NEIGHBORHOOD. GORGEOUS KITCHEN, SPACIOUS ROOMS AND A NICE CHUNK OF LAND IN THE BACKYARD. YOU WON'T REGRET IT! AGENTS PLEASE TAKE A LOOK AT THE PRIVATE REMARKS AS THEY ARE IMPORTANT.

Listed with Novus Realty Agency


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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