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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$514,400 :: 20883 W EASTVIEW Way, Buckeye AZ, 85396

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4 beds, 3 baths
Home size: 4,425 sq ft
Lot Size: 10,019 sq ft
Added: 02/26/21, Last Updated: 02/26/21
Property Type: Single Family
MLS Number: 6199681
Community: VERRADO PARCEL 4.802
Tract: VERRADO PARCEL 4.802
Status: Active


Welcome to your new home in the Master planned community of Verrado. Located InBuckeye Az. this 2 story boasts over 4,000 sq. feet of living space, 3 cargarage, large kitchen with tons of counter space and cabinets. There is a loftfor your enjoyment, plus 4 bedrooms and a master with a garden tub, separateshower and two sinks. All potential buyers are asked to check with city and taxrecords to determine actual bedroom, bathroom counts and all details on thisproperty listed above to their satisfaction. THIS IS AN AS-IS FORECLOSED/REO PROPERTY . Available on live auction website Hubzu.com. Register on Hubzu.com then Loginto website to locate the property.

Listed with RealHome Services & Solutions


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


$285,000 :: 8535 N 27TH Drive, Phoenix AZ, 85051

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3 beds, 2 baths
Home size: 1,176 sq ft
Lot Size: 7,841 sq ft
Added: 02/25/21, Last Updated: 02/25/21
Property Type: Single Family
MLS Number: 6198837
Community: ALTA VISTA 5
Tract: ALTA VISTA 5
Status: Active


BEAUTIFUL REMODELED HOME! 3 BEDROOMS, 2 BATHROOMS, 2 TANDEM COMPACT CAR GARAGE, KITCHEN FEATURES NEW STAINLESS STEEL APPLIANCES, GRANITE COUNTER TOPS, AND NEW WHITE CABINETS. TILES THROUGHOUT THE HOUSE, TILES IN THE BATHROOM SHOWERS, CONTEMPORARY BARN DOOR IN THE MASTER BEDROOM. EXTRA LARGE LOT, NEW COVERED PATIO.

Listed with DPR 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/!


$299,900 :: 904 S ANNE Avenue, Tonopah AZ, 85354

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3 beds, 2.5 baths
Home size: 2,104 sq ft
Lot Size: 54,450 sq ft
Added: 02/24/21, Last Updated: 02/24/21
Property Type: Single Family
MLS Number: 6198655
Community: See tax records
Tract: See tax records
Status: Active


Located in Tonopah, this 3 bedroom, 2.5 bath home features new two-tone Sherwin-Willams interior paint, new Frigidaire stainless steel range/microhood/dishwasher, formal living room, family room w/ fireplace, open kitchen with island & breakfast area, vaulted ceilings, arched doorways, tile flooring, oak cabinets with crown molding, split master bedroom floor plan with walk in closet & separate exit, double sinks in the master bath, indoor laundry room, 3 car garage, 1.25 acre lot, horse privileges, desirable N/S exposure, no HOA, rear covered patio & more! Take a look!! **To help visualize this home's floorplan and to highlight its potential, virtual furnishings may have been added to photos found in this listing**

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/!


$399,900 :: 11718 W COCOPAH Street, Avondale AZ, 85323

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5 beds, 2.5 baths
Home size: 2,902 sq ft
Lot Size: 6,970 sq ft
Added: 02/23/21, Last Updated: 02/23/21
Property Type: Single Family
MLS Number: 6198238
Community: COLDWATER RIDGE
Tract: COLDWATER RIDGE
Status: Active


Amazing remodel on this beautiful home. Luxurious plank tile throughout. Top of the line quartz countertops, updated kitchen cabinets with upgraded hardware. Completely remodeled bathrooms with new fixtures, modern mirrors and hardware. Custom theater room for entertaining. Newly resurfaced backyard pool that is perfect for cooling off on the hot summer days and relaxing with friends and family! Hurry to this one. This same professional renovation group recently sold another property in PHX that attracted so much attention it broke records at our brokerage, and final price was 10% above asking. These guys do it right!

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/!


$379,900 :: 17779 W HOLLY Drive, Surprise AZ, 85374

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3 beds, 2.5 baths
Home size: 1,911 sq ft
Lot Size: 6,534 sq ft
Added: 12/12/20, Last Updated: 02/13/21
Property Type: Single Family
MLS Number: 6170617
Community: ARIZONA TRADITIONS
Tract: ARIZONA TRADITIONS
The price of this listing was last reduced on 2/13/2021 by 5%
Status: Active


This home is located on a rare golf course lot with gorgeous view of the 14th green as it has 3 bedrooms , 2.5 bathrooms 1933 square feet. A marvelous kitchen with double ovens, center island with breakfast bar, tile back-splash, and beautiful cabinets with roll out shelves. Kitchen flows into eating area and great room with stone work fireplace. Living and dining room with lots of natural light emphasizing the open feel and spectacular views of the golf course that can be viewed inside or outdoors under the covered patio. This home is located in a guard-gated 55+ a well recognized community in Arizona Traditions known for its many amenities that include Biking/Walking Path; Clubhouse/Rec Room; Community Tennis Court(s); Community Heated Pool and Spa Gated/Guarded Entry; On-Site Guard

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/!


$901,000 :: 2538 E VIRGO Place, Chandler AZ, 85249

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4 beds, 3 baths
Home size: 4,248 sq ft
Lot Size: 41,382 sq ft
Added: 02/12/21, Last Updated: 02/12/21
Property Type: Single Family
MLS Number: 6193820
Community: CIRCLE G AT RIGGS HOMESTEAD RANCH UNIT 3
Tract: CIRCLE G AT RIGGS HOMESTEAD RANCH UNIT 3
Status: Active


Welcome to CIRCLE G in Chandler, Arizona. Single story ranch style includes a basement and a 3 car garage located on a large lot and comes with your own private pool. Home has two fireplaces for your enjoyment. Expansive kitchen with lots of cabinet space. All potential buyers are asked to check with city and tax records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction. This is an AS-IS foreclosed/REO property. Buyer to verify any and all information material to them.

Listed with RealHome Services & Solutions


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


$556,500 :: 4119 E FOREST PLEASANT Place, Cave Creek AZ, 85331

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3 beds, 2 baths
Home size: 2,488 sq ft
Lot Size: 49,659 sq ft
Added: 02/12/21, Last Updated: 02/12/21
Property Type: Single Family
MLS Number: 6193712
Community: Unknown
Tract: Unknown
Status: Active


Welcome to Cave Creek, Arizona. Single story ranch style with a 3 car garage located over an acre of land and your own private pool. Home has two fireplaces for your enjoyment. Expansive kitchen with lots of cabinet space and separate wet bar. All potential buyers are asked to check with city and tax records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction. This is an AS-IS foreclosed/REO property. Buyer to verify all information material to them.

Listed with RealHome Services & Solutions


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


$325,000 :: 517 W IVANHOE Place S, Chandler AZ, 85225

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3 beds, 2 baths
Home size: 1,650 sq ft
Lot Size: 7,406 sq ft
Added: 02/12/21, Last Updated: 02/12/21
Property Type: Single Family
MLS Number: 6193387
Community: THUNDERBIRD PARK PLAT 5
Tract: THUNDERBIRD PARK PLAT 5
Status: Active


FIXER UPPER, DO IT YOURSELF...IN SEARCH OF NEW OWNER! Home is not perfect and needs some TLC. The structure of the home is strong and good. Home was Flipped in mid 2019 and handled poorly since. Price is firm, but WAY below value! Been getting beat out on every other home in Chandler?? Are you handy?? This could be the home you have been looking for...only minutes from DOWNTOWN Chandler! Come see it today.

Listed with The Maricopa Real Estate Co


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


$130,000 :: 51 S MARIPOSA Drive, Wickenburg AZ, 85390

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2 beds, 1 bath
Home size: 995 sq ft
Lot Size: 8,277 sq ft
Added: 06/29/20, Last Updated: 02/05/21
Property Type: Single Family
MLS Number: 6096896
Community: VISTA DEL RIO HEIGHTS
Tract: VISTA DEL RIO HEIGHTS
The price of this listing was last reduced on 2/5/2021 by 10%
Status: Active


Located in beautiful Wickenburg close to Downtown this 2 bedroom plus den might be what your looking for. Large corner lot with long driveway and carport. Fenced backyard. screened front porch. The home has mountain views and close to rodeo grounds makes this perfect for year round living or a winter get away.

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/!


$380,000 :: 41416 N Yorktown Court, Phoenix AZ, 85086

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5 beds, 2 baths
Home size: 2,923 sq ft
Lot Size: 9,584 sq ft
Added: 01/04/21, Last Updated: 02/05/21
Property Type: Single Family
MLS Number: 6176980
Community: ANTHEM UNIT 15
Tract: ANTHEM UNIT 15
The price of this listing was last reduced on 2/5/2021 by 5%
Status: Active


Welcome to Phoenix Arizona. A Mediterranean two story home residence awaits you. If you blink it will be sold. No Buyer's Premium ***Property is lender-owned, being sold AS-IS, the seller is making no representations or warranties. The property is occupied so all potential buyers are asked to check with city and tax records to determine actual bedroom, bathroom counts and all details on this property listed above to their satisfaction prior to submitting a bid offer online. This is an AS-IS REO property. Exterior drive-by inspections only do not disturb occupants. Online auction all offers must be submitted online. Cash offers only no financing allowed.

Listed with RealHome Services & Solutions


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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