Phoenix Real Estate Market Update for 2012

 Reflecting on 2012 and what’s ahead for 2013

There is no doubt, 2012 has rewarded home owners, to which they say it is about  time!  Some reports are indicating a 15% – 25% increase in home values over  the last 12 months. The graph to the left shows the average $/sq.ft. for homes sold in Gilbert,  which has  rebounded to pre-2009 levels.  Can we expect this favorable trend to continue in 2013, or is this another bubble that will burst in 2013? They tell me I’m an analytic which probably explains why  I’ve included charts and graphs to explain my reasoning, so read on.

What’s happening with distressed properties?

To gain a better  understanding of the market, it is critical to understand the market for distressed properties. I like this graph to the right because it shows the pending foreclosures over time.  The  decrease which began in 2010 and accelerated in 2011, shows  why foreclosures have seen a significant reduction during 2012. It is very likely that it will fall below year-end 2007 levels by the end of this year.  Pending foreclosures are the fuel for the foreclosures/short sale pipeline so this trend shows that the real estate market is heading towards normalcy.

The specific impact of the reduction in distressed sales can be seen in the graph to the left which shows the percentage of distressed sales by city broken down by foreclosures and short sales.   To appreciate where we’re at, we must look back a year ago.  Nearly all cities have experienced a double digit reduction in  the percentage of distressed sales from a year ago.  Instead of torturing you with another graph, I’ll give you the  summary.

 

City               %Distressed Sept. 2011     %Distr.Sept. 2012             Change

Gilbert                             61%                               38%                         -23%

Chandler                         61%                               38%                         -23%

Mesa                                66%                               42%                         -24%

Queen Creek                  65%                                36%                         -29%

Scottsdale                      44%                                 27%                         -17%

Surprise                          73%                                 49%                        -24%

This is over a 12 month period which equates to a 2% decrease per month in many areas.   Distressed sales, foreclosures and short sales, will still be around for a while but the trend continues to be extremely encouraging.

What happens when home values rise?

As distressed properties (foreclosures and short sales) are decreasing and home values are rising, this is welcome news to  underwater home owners .  Before, these home owners could not voluntarily sell their homes.  Rising home values provide the opportunity for more owners to participate in a traditional sale which allows more homes to come on the market.  Since the 3rd quarter of 2011, the increase in prices has been driven by the lack of supply of homes for sale. In order to view the balance between supply and demand we must refer to, you guessed it another graph! The months of inventory graph to the right shows that balance between supply and demand.  A rise in the available homes for sale with constant demand  increases the months of supply because it takes longer for that demand to consume the supply.  We are already seeing an increase in the months supply in many cities which means that as prices increase and more homes come on the market, it will take longer for homes to sell and the rate of increase in prices will slow down.  A six month supply of homes is consider normal so our market is still very healthy but an update trend indicates a cooling off.

One of the hottest market segments has been lower priced homes that can be purchased and rented out with immediate cash flow offering a significantly better rate of return than other investment alternatives.   As prices increase, the ROI comes down and a point will come where the reduced return does not justify the investment and investors will be leaving  the market.

As the Phoenix housing market returns to what may be close to a normal market, prices will continue to increase but will be moderated by an increase in the supply of  homes.  Phoenix was one of the first markets hit by the bubble so the fact that we’re one of the first ones out should not be a surprise.  Foreclosures and short sales will continue to be part of the equation but a smaller percentage.  Look for continued appreciation in 2013 but not the frenzied price recovery that we’ve seen in 2012.

Your thoughts?

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Related Posts:

Distressed Sales in 2012 compared to 2011

Where’s the  Phoenix market going in 2012?

Luxury Waterfront Property in Phoenix

$550,000 :: 4474 E RUNAWAY BAY Drive, Chandler AZ, 85249

Property Photo

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4 beds, 2 baths
Home size: 2,309 sq ft
Lot Size: 8,712 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6296203
Community: SUN GROVES PARCEL 6 & 7
Tract: SUN GROVES PARCEL 6 & 7
Status: Active


Don't miss out on this 4 bedroom, 2 bathroom home in Sun Groves! The kitchen was remodeled with new cabinets, marble counter tops, new tile, and a changed layout to make a wide open area for entertaining. It also features a huge pantry. Pride in ownership is evident with updated fans, lighting, and a new back door. Water filtration system and water softener are also installed and recently maintained!Excellent back yard for entertaining with a grassy play area and a refreshing pool that was installed in 2015. This home also features security screen doors and shade screens!Don't miss out on this great opportunity to live in Sun Groves. This community includes multiple parks, walking paths, and a lake!

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/!


$519,999 :: 4068 E Indigo Street, Gilbert AZ, 85298

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2 beds, 2 baths
Home size: 1,917 sq ft
Lot Size: 5,663 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6295969
Community: Trilogy
Tract: Trilogy
Status: Active


Welcome home to the highly desired Trilogy @ Power Ranch. Enjoy this Active Adult living community with the finest amenities and guard gated entrance. This single story, Cottonwood floor plan, is built by Shea Homes. Recently remodeled with plank tile throughout, neutral paint and shutters. Walk into this split floor plan with guest bedroom, bath and den off to the left. Enter the kitchen with white cabinets, huge kitchen island, granite counter tops and stainless steel appliances. Relax in your cozy family room with remodeled gas fire place. Large master suite with exit to backyard. 2015 remodeled 3/4 master bath with double sinks. Enjoy your tranquil back yard with covered patio. New 2021 16 seer Trane AC. 2018 Hot Water Heater, N/S exposure, 2 car garage with storage cabinets.

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/!


$850,000 :: 2041 E FINLEY Street, Gilbert AZ, 85296

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5 beds, 3 baths
Home size: 3,306 sq ft
Lot Size: 13,940 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6295928
Community: PARKSIDE AT FINLEY FARMS UNIT 1
Tract: PARKSIDE AT FINLEY FARMS UNIT 1
Status: Active


Come see this beautiful move-in ready 5 bedroom home! Loaded with upgrades including New pool pump 2021, pool and decking resurfaced 2020, mister system, Newer AC units, fresh exterior paint 2019, insulated garage doors, newer water heater, water softener and extended driveway with RV gate. Gourmet kitchen with stainless steel appliances, granite countertops, soft close cabinets, R/O system, large island and great flow into the living room with cozy electric fireplace. Sizable bedrooms with 2 on the main floor and a full bathroom, bonus room and great room. Located in the highly desired Finley Farms community, just minutes from Riparian Preserve Park, golfing, Val Vista Shopping and more! Come see this wonderful home today!

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/!


$365,000 :: 2654 E BELLERIVE Drive, Chandler AZ, 85249

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3 beds, 2.5 baths
Home size: 1,387 sq ft
Lot Size: 3,921 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6295960
Community: COOPER COMMONS
Tract: COOPER COMMONS
Status: Active


Stop the car, this is it! Former builder model, gorgeous 3 bedroom, 2.5 bath with private backyard and sparkling hot tub! This home has it all, white kitchen cabinets, stainless steel appliances, granite countertops, open concept kitchen/living room, tons of natural light, cathedral/vaulted ceilings. You'll love the storage available in the walk in pantry and the convenience of the 2nd level dedicated laundry room, it's huge! Take a stroll through the community walking paths, or gather friends for a game of volleyball, basketball, or meet at the playgrounds. So much fun waiting for you in this active community!

Listed with The Offer Company


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


$540,000 :: 4040 E SUNDANCE Court, Gilbert AZ, 85297

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4 beds, 2 baths
Home size: 2,052 sq ft
Lot Size: 8,712 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6295663
Community: POWER RANCH NEIGHBORHOOD 4
Tract: POWER RANCH NEIGHBORHOOD 4
Status: Active


Gorgeous move-in ready home! Kitchen renovation includes beautiful granite counters, KitchenAid appliances, large island, and custom cabinetry. Laundry has maximized storage w/sink and was completed to match kitchen cabinetry for continuity. Custom shutters have been installed throughout the main area of the home. The backyard is absolutely stunning! It features an oversized patio with pavers galore! The pavers have been placed around the yard making a beautiful walking path to an additional patio area under the mature trees. Watering system is around the entire yard including drips to all the yard planters. The side yards have ample space for more planters and storage behind the RV gate. Garage has lots of space & storage including built-in cabinets! HOA pool nearby w/wonderful amenities!

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/!


$499,900 :: 1364 S SILVERADO Street, Gilbert AZ, 85296

Property Photo

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4 beds, 2 baths
Home size: 1,841 sq ft
Lot Size: 7,841 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6293444
Community: SETTLER'S MEADOW
Tract: SETTLER'S MEADOW
Status: Active


Welcome Home to Silverado Street. This charming four bedroom, two bathroom ranch in the Settler's Meadow community is just finishing up on some final touches before it activates. Text the lister for more details.

Listed with Keller Williams Realty Phoenix


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


$1,025,000 :: 4163 E SCORPIO Place, Chandler AZ, 85249

Property Photo

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5 beds, 4 baths
Home size: 3,473 sq ft
Lot Size: 18,731 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6292861
Community: FALCON ESTATES
Tract: FALCON ESTATES
Status: Active


Prepare to be amazed! Come and see this luxurious 5 bed, 4 bath residence now for sale in the prestigious Community of Falcon Estates! Attractive landscape w/mature palm trees & artificial turf, 4 car garage, and RV gate! You will find an elegant foyer which flows into formal dining & living areas w/numerous archways t/o, a den perfect for an office, fireplace, stone floors, and a trending palette. The chef's kitchen is equipped w/ample mahogany cabinetry, a pantry, granite counters, tile backsplash, SS appliances, an island, breakfast nook, and breakfast bar. The spacious primary bedroom features a charming bay window, private outdoor access, walk-in closet, and an upscale ensuite w/two vanities. The wonderful backyard includes a large covered patio, gazebo, & gorgeous pool!

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/!


$615,000 :: 1726 E AZALEA Drive, Gilbert AZ, 85298

Property Photo

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4 beds, 3 baths
Home size: 2,296 sq ft
Lot Size: 9,148 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6291490
Community: SAN TAN ESTATES
Tract: SAN TAN ESTATES
Status: Active


In the highly sought-after gated community of LEGEND RIDGE! This property is also located in the popular zip code of 85298 and the CHANDLER SCHOOL DISTRICT! You will LOVE the bright, open and spacious floor-plan. This home boasts 4 BEDROOMS, 3 FULL BATHROOMS, 3 CAR GARAGE, RV GATE AND A POOL! The kitchen is stunning, featuring white shutters (throughout), white cabinets, beautiful granite and upgraded stainless steel appliances (double ovens & gas cooktop). The home is being professionally painted inside with a fresh coat of gorgeous white paint. The property will be professionally cleaned (including carpets) allowing this home to be this move-in-ready! You will not want to miss this one!

Listed with Hague Partners


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


$415,000 :: 4495 E WOODSIDE Way, Gilbert AZ, 85297

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3 beds, 2.5 baths
Home size: 1,578 sq ft
Lot Size: 3,485 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6290815
Community: POWER RANCH NEIGHBORHOOD 9 PARCEL 2 REPLAT
Tract: POWER RANCH NEIGHBORHOOD 9 PARCEL 2 REPLAT
Status: Active


Welcome this to Bungalow style home in the award winning community of Power Ranch. Situated in The Knolls neighborhood of Power Ranch, you will have access to three pools. This split floor plan includes 3 bedrooms, 2.5 baths with direct entry from the 2 car garage. The kitchen offers granite counters, maple cabinets, black appliances, and a pantry. Oversized glass door opens to the beautifully updated yard, ideal for relaxing or entertaining. Enjoy the low maintenance lifestyle this home has to offer. The beautiful yard has brand new turf and a brand new pergola to enjoy the Arizona outdoor living.

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/!


$625,000 :: 3132 E BUENA VISTA Drive, Chandler AZ, 85249

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4 beds, 2 baths
Home size: 2,446 sq ft
Lot Size: 8,277 sq ft
Added: 09/23/21, Last Updated: 09/23/21
Property Type: Single Family
MLS Number: 6284542
Community: SPRINGFIELD LAKES BLOCK 1B
Tract: SPRINGFIELD LAKES BLOCK 1B
Status: Active


Pride of ownership shows in this beautiful single level home in Springfield Lakes! Step through the front door and see Tile & Wood laminate flooring thru-out, no carpet! Skylights offer alot of natural light. The upgraded kitchen boasts Maple Shaker Cabinets with pull outs, stainless appliances & Quartz counters and backsplash, Huge island that opens to the dining area & family room which is great for entertaining. Owner's Suite has be updated with new flooring, has dual sinks, walk in closet with custom built ins. Office/Bedroom has custom Stonecreek built in desk. The backyard oasis boasts a built in BBQ, Spa, & Pebbletec Pool. Attic access in garage with pull down. RV gate & pad. Community has tons of grass, mature trees, Pool, Play area with golf, lakes & close to shopping/dining

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/!


 

 

 

 

One Reply to “Phoenix Real Estate Market Update for 2012”

  1. Gordon,

    Discovered your site while surfing national waterfront homes websites. Really like the structure and focus on themed searches!

    I’ll keep you in my CMS as a Phoenix Realtor referral.

    Thanks,
    Jonathan

    You can view my Charleston SC waterfront homes website at the link below:

    Search Charleston SC Waterfront Homes

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