Phoenix 2012 Real Estate Review

A Look  Back at 2012 for Phoenix Real Estate

The year in review of 2012 for homeowners was an encouraging one to be sure. 2011 was essentially a flat line, and there has not been any appreciation in home prices since 2005. Therefore, the 12 – 29% increase experienced in nearly all Phoenix metropolitan cities in 2012 was the perfect present indeed! If you’re interested in why prices finally made a U-turn and the chances of a repeat performance, feel free to read on.

 Foreclosures, Lender-Owned, Short Sales and Distressed Property in Phoenix

At one time bank owned properties accounted for over 50% of the sales, and when you added in short sales, distressed sales (foreclosures+short sales) were over 75% of the sales in many areas. That trend has been reversed and it is easy to see why when  you look at the number of homes receiving a Notice of Trustee Sale which is the mechanism advising the homeowner that the home is in foreclosure.  The graph above shows the number of Notices by quarter by year for Maricopa county.  Currently we’re approaching levels that were experienced prior to the bubble. The bottom line is with fewer homes going into foreclosure, the fewer bank-owned homes going up for sale.  And because Arizona practices non-judicial foreclosure the shadow inventory is minimal.

The  effect of this decrease of homes going into foreclosure can be seen in the

 

 

 

composition of the sales for the last 10 years.  The above graph shows the sales by month and the type of sales for the greater Phoenix area; normal in dark  blue, short sales in light blue and foreclosure (REO) in brown.  From 2008 through early 2011, foreclosures(brown bars) were a significant portion and normal sales fell significantly.  We also see that normal sales(dark blue) have increased since 2012 as prices have risen.  Short sales have not reduced as quickly as the foreclosures but will as prices rise and economic conditions improve.

Home Value Increases in Phoenix

As I mentioned nearly all Phoenix areas have seen increases in the sales prices and $/square foot of homes sold.  To the left is  a graph for Gilbert showing the average price per square foot for the last three years.  At the beginning of the year the average price/sq.ft. for homes sold was $89.  At the end of 2012, it has risen to $106/sq.ft., a 19% increase.

For the city of Queen Creek, we notice that prices on a per square foot basis started at around $58 and ended at approx. $78/sq.ft. reflecting a 34% gain for 2012.   This was one of the areas that was hardest hit during the decrease in home prices.

Remember these are averages and will vary depending on the house condition, location, age, size, amenities, upgrades and other variables.

If you’re interested in knowing the value of your home, please click on the following link, What is my home worth?

Inventory – Balancing Supply and Demand

In 2009 – 2010 Gilbert listings ranged between 1,400 – 1,900, during 2012 they were in the 350 – 600 listing range and ended 2012 at approximately 540.  This pattern is similar in many other cities.

In the beginning of 2010, Chandler  listings were approximately 1,200.  At the end of 2012, they were 440. This reduction in inventory of available listings has been the driving force in appreciating home values.

The best way to evaluate both supply and demand is to look at the supply of inventory.  The graph to the  left shows the months supply of inventory for various Phoenix area cities.  When the inventory goes up, this indicates that more houses are available on the market compared to the available demand.  A six month supply of inventory is considered normal.  Therefore, the graph shows that there is still robust demand for available homes as they come on the market.    It is still common for a property to receive multiple offers if it is priced appropriately.

 What is in store in 2013 for Phoenix real estate?

The inventory graph also gives us an indication of what is in store for 2013.  As prices rise, fewer homes will be under water and more traditional sales will come on the market at prices than typical short sales and foreclosures.  Some buyers may decide not to buy as prices rise and the supply will seek a more  balanced level between supply and demand. Again 6 months inventory supply is considered normal.   As you can see, each city is at a different stage in returning to balanced supply and demand.  I believe prices will continue to rise in 2013, but not at the rate we’ve experienced in 2012.  My guesstimate is about half the appreciation rate that we’ve seen in 2013.

If you’re interested in receiving home listings as they come on the market, click on Receive Listings Automatically, or if you’re interested in the market value of your home, go to What is my home worth?

Related Posts:

Distressed sales for 2012 compared to 2011

Who really loses on a foreclosure – the bank? Thing again!

In search of happily ever after with a short sale

Helpful Searches:

Gilbert Home Search

Mesa Homes  for Sale

Queen Creek Home Search

$1,375,000 :: 909 E VERMONT Drive, Gilbert AZ, 85295

Property Photo

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6 beds, 4.5 baths
Home size: 5,137 sq ft
Lot Size: 12,197 sq ft
Added: 01/14/22, Last Updated: 01/14/22
Property Type: Single Family
MLS Number: 6338302
Community: ESTATES AT VELVENDO PHASE 1
Tract: ESTATES AT VELVENDO PHASE 1
Status: Active


This incredible former-model home (not lived in till 2017) sits on a premium waterfront lot with a creek running behind the home and a lake to the side. Only one direct neighbor! Formal living & dining, upstairs loft , separate built-in homework space, gorgeous pool & hot tub, and OWNED solar! With over 5,000 square feet, 6 bedrooms and 4.5 bathrooms--including 2 master bedrooms (1 upstairs and one downstairs). The den next to the downstairs master could be used as an in-home office. The oversized gourmet kitchen features two islands, high-end Jenn-air appliances, built-in refrigerator, and spacious breakfast nook. The large great room and open and airy feel make this home perfect for entertaining. You can't beat this location close to shopping, restaurants & the 202 freeway.

Listed with HomeSmart Lifestyles


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


$1,349,000 :: 1820 E MONARCH BAY Drive, Gilbert AZ, 85234

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4 beds, 2.5 baths
Home size: 3,055 sq ft
Lot Size: 13,940 sq ft
Added: 01/12/22, Last Updated: 01/12/22
Property Type: Single Family
MLS Number: 6341055
Community: CRYSTAL SHORES AMD LOT 1-82 TR A-I
Tract: CRYSTAL SHORES AMD LOT 1-82 TR A-I
Status: Active


A true gem located in the Val Vista Lakes community, this modern coastal style home is influenced by the outdoors, a harmonious balance of the elements to create a peaceful lifestyle by the lake. Enjoy outdoor-indoor living space with panoramic sliding glass doors opening into the spacious, lakeside backyard. Inside you will experience the comforts of a luxury residence as this home has been extensively remodeled, with an open floor plan featuring 10ft+ vaulted ceilings, a massive butcher block island & quartzite countertops, custom cabinetry, porcelain tile, & carpeted bedrooms. Perfect for entertaining, this is the ultimate outdoor BBQ kitchen for the overachieving chef. Lose track of time while enjoying the best sunset views in the neighborhood from your very own private boat dock.

Listed with Taylor Street Advisors


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 :: 1346 W CLEAR SPRING Drive, Gilbert AZ, 85233

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3 beds, 2 baths
Home size: 1,602 sq ft
Lot Size: 5,228 sq ft
Added: 01/03/22, Last Updated: 01/06/22
Property Type: Single Family
MLS Number: 6335429
Community: CORAL POINT REPLAT LOT 76-101
Tract: CORAL POINT REPLAT LOT 76-101
The price of this listing was last reduced on 1/6/2022 by 2%
Status: Active


The first thing you'll notice when you pull up to this beauty is the great curb appeal and attractive landscaping. Step inside to a beautiful home with an open floor plan and vaulted ceilings. There is wood-like tile flooring and lots of upgrades. The kitchen offers granite countertops, stainless steel appliances, tile backsplash, island with breakfast bar, and contemporary cabinets. Stunning Master bath suite with stand alone tub, separate shower with marble walls, and walk in closet. Cozy backyard with covered patio and beautiful views. HOA maintains both front and back landscaping. New roof 2019 and new AC 5/21. Hurry and come take a look at this gem while it's still available. You won't be disappointed.

Listed with Real Broker


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


$575,900 :: 1025 W PENINSULA Drive, Gilbert AZ, 85233

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4 beds, 3 baths
Home size: 2,787 sq ft
Lot Size: 10,019 sq ft
Added: 12/05/20, Last Updated: 01/27/21
Property Type: Single Family
MLS Number: 6156476
Community: WINDHAVEN
Tract: WINDHAVEN
Status: Active


BEST PRICED WATERFRONT ISLAND HM.N/S.EXP.OVER 10K SF WATERFRT VIEW LOT W/94 FEET OF WATER FRONT & APPROX.120FT DEEP LOT.PRVT DOCK BRIGHT&OPEN.FORMAL LVG;DININGNOOK+FR.VAULTED CEILING.UPDATED FLOORING;GRANITE COUNTER KITCHEN CABINETS;WHITE WOOD SHUTTERS.SECURITY DRS@ENTRY&BACK PATIO DBL FRENCH DOOR. OVER-SIZED COV'D PATIO.WET BAR W/GRANITE COUNTER.ALL BATHS HAVE BEEN REMODELED.MASSIVE MASTER BR W/HIS&HER'S CLOSETSSEP.TUB/SHOWER.2 SINKS W/SPACIOUS COUNTER SPACE&STORAGE.DBL FRENCH DOOR W/SEC.IRON GATE WALK ON TO PVT WATER FRONT VIEW DECK FOR YOUR LEISURE MORNING RELAXATION -THEN RETURN TO ENJOY THE INCREDIBLE ARIZONA SUNSET-LIFE IS JUST PERFECT HERE. HURRY! CALL NOW FOR YOUR PRIVATE TOUR ARRANGEMENT. MUST SEE TO APPRECIATE. MASKS REQUIRED WHILE ON THE PREMISE.

Listed with FDR 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/!


$799,900 :: 4901 S WILDFLOWER Place, Chandler AZ, 85248

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4 beds, 3 baths
Home size: 2,524 sq ft
Lot Size: 10,890 sq ft
Added: 01/07/22, Last Updated: 01/07/22
Property Type: Single Family
MLS Number: 6339096
Community: OCOTILLO LAKES PARCEL D2 FINAL PLAT
Tract: OCOTILLO LAKES PARCEL D2 FINAL PLAT
Status: Active


VACANT! Welcome home! Wonderful single-level home with a split floorplan! New stainless steel appliances and quartz countertops in the kitchen! Fresh paint and new carpet throughout! Private pool out back! Come see it today!

Listed with Offerpad


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


$999,900 :: 1762 W MEAD Place, Chandler AZ, 85248

Property Photo

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4 beds, 2.5 baths
Home size: 3,234 sq ft
Lot Size: 10,455 sq ft
Added: 12/17/21, Last Updated: 12/17/21
Property Type: Single Family
MLS Number: 6332994
Community: OCOTILLO LAKES
Tract: OCOTILLO LAKES
Status: Active


Desirable location in Ocotillo Lakes Gated Community! Two story 3 bedroom 2.5 bath with den. Kitchen boasts Quartz countertops, beautiful backsplash, full appliance package, electric cooktop, wall ovens, refrigerator, dishwasher, Wet bar/beverage fridge in kitchen. Fresh interior paint. New carpeting in the right places. Large master bedroom. upstairs has a loft. Backyard has private pool and landscaped backyard.

Listed with Offerpad


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


 

More Chandler and Gilbert  waterfront properties are available at Gilbert-Chandler Waterfront Homes

 

 

 

 

 

 

 

 

 

 

 

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