Phoenix real estate market trend – 2013 first half

FountainHalf way into 2013 – Where’s Phoenix Real Estate Going and Why?

2012 was a good year for real estate in Phoenix, and the question going into 2013 is “Can prices continue to go up like they did in  2012?” Price appreciation in 2012 in many cities resulted in appreciation over 20%, and sellers eagerly want prices to climb back to 2005 – 2006 levels after enduring 4 brutal years leading up to the market bottom in 2011.  Buyers are also asking what has happened to distressed properties in 2013?  Are foreclosures/short sales coming back? Is the end to the recent price increase right around the corner? Now that we’re more than half way into 2013, the answer to these questions is becoming evident.

 

Distressed Sales by City July 2013

The healing continues for the Phoenix real estate market

The graph to the right is one of my favorite graphs because it is an indicator of market distress within each city.  Instead of throwing out a broad market statistic, the true health of each city is indicated by the percentage of  foreclosure and short sale transactions.  The real substance to this snapshot is the comparison to previous years. To see how far we’ve come, click back to this same chart 2 years ago in 2011, right when the market was bottoming out.  In July 2011, 85% of Avondale’s sales were distress, now  30%. Chandler was over 65%, now its at 2013 Pending Foreclosures graph16%. Mesa distressed sales as a percentage of total sales were over 70%, and have now decreased to 22%. Gilbert went from 63% to 17%. Even Tolleson which saw distressed sales over 90% of total sales two years ago have plummeted to less than 40%.  Many bargain hunting buyers have also noticed the scarcity of short sales and foreclosures that were a source of low priced properties.

One  of the reasons is the continued reduction in pending foreclosures over the past 3 years.  By the end of the year, the pending foreclosures should be where they were in 2004!  Increasing prices have also reduced short sales by reducing the underwater properties.

Cash Buyers – Are they still out there?2013 Cash Purchases

A popular topic regarding who is buying real estate in Phoenix turns to investors. Frequently, first time home buyers will recount how many times they submitted offers only to lose to a cash buyer.  A review of the chart to the right  shows a steady decrease in purchases of homes with cash since the beginning of 2012. The most recent value of 29% is the lowest since June 2010.   Since 2008, the increase in cash purchases, many by investors is supported by the fact that homeownership has decreased from 69.2% at the end  of 2004,  to a low at the end of March 2013.  So are cash buyers still out there? “Yes”, but the trend is downward as prices rise, ROI decreases and distressed sales diminish.

More homes on the market in some cities

Gilbert Historical listings

Some valley cities are have seen a rise in inventory. It is amazing to see the dramatic fluctuation we’ve experienced over the last 3 years. The graph to the right shows Gilbert inventory or homes for sale going back  to Nov. 2010 when the majority of listings were either foreclosures(brown) or short sales (light blue).  Currently in Gilbert and the rest of the valley, listings of normal sales(blue) are higher than they’ve been in at least 3 years. Buyers looking for foreclosures and short sales are finding fewer and fewer.  Other cities also seeing a rise in inventory in the last 4 – 6 months include Avondale, Chandler, Glendale, Mesa, Peoria, Tempe, Queen Creek and Phoenix. Some cities that have seen a reduction in inventory or maintain current levels in the last 4 – 6 months; Gold Canyon, Goodyear, Scottsdale, Sun City, Sun Lakes and Surprise. Age restricted communities typically see inventory listings increase the last half of the year.

And Interest Rates. . . .

The effect of  interest rates must be factored into the demand side of the equation.  Rates in the last couple of months have risen by more than 1%. To see the effect that this can have, consider a buyer that can afford $1,200/month  for principal and interest.  With a 10% down payment and a 4% interest rate, the buyer can afford a $280,000 home.  When interest rates go up to 5%, that same $1,200 per month mortgage allows the  buyer to purchase a $250,000 home. That 1% rise in rates reduced the purchasing power by $30,000.

So tell us about prices….

Mesa 2013 GraphI know that you’ve kept reading so you can get to the good stuff, where are prices going?   Every city saw significant appreciation during 2012.  For many cities the start of 2013 is an extension of last year. However, there is moderation or reduction of appreciation in others as measured by the average price $/sq.ft. For example, Mesa is showing 13% year to date as seen in the graph to the left, and may come close to that seen in 2012.Goodyear 2013 Graph

Other cities such as Surprise, Scottsdale, Sun Lakes, Gold Canyon, Sun City West, Casa Grande, Apache Junction and Goodyear have seen weaker appreciation when viewing appreciation measured by Average Price$/Sq.Ft. of sold homes and may not reach the levels they saw during 2012.  The graph to the right shows appreciation for Goodyear which is at about 6% year to date appreciation, about half that of Mesa’s.

Cities that have shown strong positive appreciation during the first half of the year include Avondale, Phoenix, Tempe, Chandler, Gilbert, Peoria, Mesa, and Glendale.  Obviously, within each city there will be 2013 Gilbert Graphvariations depending on square footage, year built, price point, features, condition, lot size, etc.   If you’d like me to review comparable sales for your property, click on What’s the Value of My Home. To receive available homes for sale, click on Send Me New Listings.

A reduced appreciation rate compared to 2012 is understandable as prices continue to climb when buyer’s income isn’t increasing as rapidly and the increase in mortgage interest rates reduces buying power.  Coupled with the reduction in distressed properties points to the Phoenix market and surrounding cities returning to a more normal market.  Wow, its been a long time since we’ve seen one of those!

 

Other posts in the blog

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Are addresses in Phoenix cities that helpful?

Who loses on a foreclosure, the bank? Think Again!

 

$499,990 :: 4566 S Riata Street #102, Gilbert AZ, 85297

Property Photo

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3 beds, 2.5 baths
Home size: 1,684 sq ft
Lot Size: 872 sq ft
Added: 06/27/22, Last Updated: 06/27/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6424848
Community: MOSAIC AT LAYTON LAKES CONDOMINIUMS
Tract: MOSAIC AT LAYTON LAKES CONDOMINIUMS
Status: Active


Why wait for something to be built when you can have this Brand New 3 Bedroom 2.5 bath never been lived in home today! Upgraded flooring and kitchen give this home a unique charm. The vaulted ceilings make this home feel larger than its 1,684 sqft floor plan. Upstairs you will find a split master bedroom overlooking the green belt and lake. The whole home is pre-wired for fans and is ready for all your wireless technology including thermostats, garage door, doorbells and so much more. Your new home is centrally located to shopping, city parks, lakes and the community boasts amenities that include swimming pool, splash pad, tennis courts, basketball courts, private playground, pavilion, walking and bike trails. The community takes care of all landscaping and outside maintenance.

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/!


$4,200,000 :: 47 N SKI Court, Gilbert AZ, 85233

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4 beds, 4 baths
Home size: 5,658 sq ft
Lot Size: 20,038 sq ft
Added: 06/25/22, Last Updated: 06/25/22
Property Type: Single Family
MLS Number: 6408482
Community: CRYSTAL POINT ESTATES AMD LOT 1-20 TR A-H
Tract: CRYSTAL POINT ESTATES AMD LOT 1-20 TR A-H
Status: Active


Stunning Contemporary Luxury Home in prestigious Crystal Point Estates is now available for private showings. This gorgeous home is named by the owner Casa Motu, which means - House of the Private Island and is located in a Gated & Private Water Ski Lake Community in Gilbert, Arizona. If you are dreaming of living a resort style lifestyle on the water, this is the home and community for you! It's a lifestyle like no other! Perfectly situated it is convenient to Sky Harbor Int. Airport, Phoenix Gateway Airport, Chandler Air Park, major malls, golf resorts. freeways 60, 202 & 101, & so much more ! With 4BRs+4 BRs and 5860 sq ft and a negative edge pool w/Spa, this east facing backyard has the most gorgeous water views on the lake. Big mention:: No homes across the lake & No home north side!

Listed with Coldwell Banker 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/!


$474,900 :: 1698 E BRIDGEPORT Parkway, Gilbert AZ, 85295

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2 beds, 2.5 baths
Home size: 1,369 sq ft
Lot Size: 872 sq ft
Added: 06/16/22, Last Updated: 06/23/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6418126
Community: VAL VISTA CLASSIC PARCEL 1 CONDOMINIUM BLKS 1 32 3
Tract: VAL VISTA CLASSIC PARCEL 1 CONDOMINIUM BLKS 1 32 3
The price of this listing was last reduced on 6/23/2022 by 5%
Status: Active


Absolutely stunning home located in Val Vista Classic community of Gilbert! This home has it all! This immaculate home features TONS of upgrades such as plank tile flooring, surround sound, quartz counter tops, upgraded cabinets with crown molding, stainless GE appliances, backsplash, a balcony that overlooks the water right in front of the home, a spacious master bedroom, the secondary bedroom also has a full bath, and many more upgrades. This home is absolutely immaculate and move in ready! This home is low maintenance and ready to call home. It is located near San Tan Mall and minutes downtown Gilbert, and in a gated community as well!

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/!


$599,999 :: 755 E ZION Drive #103, Gilbert AZ, 85297

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4 beds, 3 baths
Home size: 2,028 sq ft
Lot Size: 872 sq ft
Added: 06/22/22, Last Updated: 06/22/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6420244
Community: MOSAIC AT LAYTON LAKES CONDOMINIUMS AMD
Tract: MOSAIC AT LAYTON LAKES CONDOMINIUMS AMD
Status: Active


This house is MOVE-IN READY. Enter into a comfortable great room, dining room and lovely kitchen with white cabinets, gold hardware, and Quartz countertops. It features GE Profile appliances, a beautiful backsplash, two pantries, & a great spot for a coffee bar. Enjoy the view of the lake through a large picture window. Windows have motorized blinds. The downstairs has vinyl plank, with one bedroom and full bathroom. Upstairs are 3 bedrooms and 2 full bathrooms with a large loft for a den or office. Upstairs windows decorated with plantation shutters and every room has a fan.The garage has racks for storage. This home is located in Layton Lakes with walking paths, lakes, parks for tots and available swimming pools, tennis courts, basketball courts and so much to enjoy!

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/!


$594,900 :: 755 E ZION Drive #102, Gilbert AZ, 85297

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3 beds, 2.5 baths
Home size: 1,684 sq ft
Lot Size: 872 sq ft
Added: 06/17/22, Last Updated: 06/17/22
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6402771
Community: MOSAIC AT LAYTON LAKES CONDOMINIUMS AMD
Tract: MOSAIC AT LAYTON LAKES CONDOMINIUMS AMD
Status: Active


Beautiful townhome in highly desirable neighborhood of Mosaic at Layton Lakes. Just minutes from expansive shopping and L202. This like-new home features a lake view and mountain view! Enjoy 3 BR, 2.5 BA, kitchen, dining, great room, huge laundry room, and loft with built-in desk. Soak up the beautiful Arizona weather in your private oversized backyard, with no home behind you. Garage has epoxy floor, insulated garage door, and upper shelving for storage. Home has upgrades galore which are listed in Documents. Mosaic is a gated community within Layton Lakes. Enjoy all its amenities: swimming pool, spa, BBQ area, and kids playground. Also enjoy all of Layton Lakes fishing lakes, walking trails, jogging tracks, splash pad, and sport fields. HOA includes water/sewer/gas/valet trash.

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/!


$925,000 :: 3654 E CHESTNUT Lane, Gilbert AZ, 85298

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4 beds, 3.5 baths
Home size: 2,896 sq ft
Lot Size: 8,277 sq ft
Added: 06/03/22, Last Updated: 06/16/22
Property Type: Single Family
MLS Number: 6408688
Community: BRIDGES AT GILBERT PHASE 1 PARCEL 4
Tract: BRIDGES AT GILBERT PHASE 1 PARCEL 4
The price of this listing was last reduced on 6/16/2022 by 2%
Status: Active


This gorgeous, highly upgraded ($190K) Bridges home is move-in ready! Single level beauty on an impeccable, low maintenance corner lot is walking distance to Lake Park, Tot Lot & highly rated 10/10 Bridges Elementary. Graced with natural light, this expansive, open floor plan flows from a private courtyard w/ open slider to the stacking glass wall leading to a custom designed patio and pool area. An entertaining lifestyle is afforded w/ a bar/beverage center & chef's kitchen w/ expanded, high end cabinetry, double ovens, gas range & large walk-in pantry. A granite/stone finished island & breakfast area overlook the backyard, resort-style haven. THIS backyard is the essence of an Arizona Outdoor Lifestyle! Listen to 3 linear waterfalls in your zero entry, heated pool or dine al fresco

Listed with Russ Lyon Sotheby's International 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/!


$925,000 :: 552 N MONDEL Drive, Gilbert AZ, 85233

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4 beds, 2.5 baths
Home size: 3,552 sq ft
Lot Size: 8,712 sq ft
Added: 05/09/22, Last Updated: 06/10/22
Property Type: Single Family
MLS Number: 6396914
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
The price of this listing was last reduced on 5/31/2022 by 8%
Status: Active


Luxury waterfront home in Gilbert's exclusive Playa Del Rey Estates. This lake community oasis features 4 bedrooms 2.5 baths. Master bedroom has own private level that boast balcony/patio with view of the lake. Many features and updates, 3 car gar, play pool, water softener, fruit tree. Superior granite counter tops, top of line Viking appliances, low flow toilets, executive office including mahogany built in bookshelf and desk. PRICE ADJUSTMENT...MOTIVATED SELLER !!!!!!!

Listed with Call Realty, Inc.


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


$1,048,900 :: 1114 E CULLUMBER Street, Gilbert AZ, 85234

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4 beds, 3.5 baths
Home size: 2,970 sq ft
Lot Size: 6,970 sq ft
Added: 05/28/22, Last Updated: 06/06/22
Property Type: Single Family
MLS Number: 6407922
Community: SOUTHERN SHORES AT WIND DRIFT LOT 1-33 TR A B
Tract: SOUTHERN SHORES AT WIND DRIFT LOT 1-33 TR A B
The price of this listing was last reduced on 6/6/2022 by 5%
Status: Active


Prepare to be amazed! Come and see this completely remodeled 4 bed, 3.5 bathrooms, waterfront residence now for sale in the Lake Community of Wind Drift! Upon entering you will find soaring ceilings, a 1st floor guest bedroom and a large office/flex space w/mini split. This home has a spacious great room with pre-wired surround sound and luxurious 24x24 tile floors. The elegant kitchen displays custom white cabinets, tile backsplash, granite counters, dry bar, SS appliances, a large waterfall island, & a lovely bay window looking out to the lake. The large master bedroom includes balcony access, an upscale bathroom w/2 vanities, a standalone tub, & walk-in closet. This home also features a media/game room as well as air conditioned garage/work out area/workshop! This home has it all!

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/!


$699,000 :: 731 S PUEBLO Street, Gilbert AZ, 85233

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3 beds, 3 baths
Home size: 2,308 sq ft
Lot Size: 10,455 sq ft
Added: 05/28/22, Last Updated: 05/28/22
Property Type: Single Family
MLS Number: 6407779
Community: WHISPER GROVE LOT 1-60 TR A-D
Tract: WHISPER GROVE LOT 1-60 TR A-D
Status: Active


Beautiful Home Back to Lake with View Fence The house is Completely Remodeled Throughout with Quality Upgrades,Kitchen has Granite Counter with back splash and Black Stainless Appliances ,Laundry Room Plus all 3 baths have granite Counter tops,Master Bath has Luxurious walk in shower ,Porcelain 24X24 Tarsus Grey polished Tile Throughout Carpet in master Bedroom ,Vaulted Ceilings design,Wood Shutters on all windows Plus Sun Screens .Garage has built in Cabinets Plus Storage Racks,Enjoy the gorgeous back yard with Syntheic Grass with putting greens ,Basketball Court,Newly redone Pool with built in waterfall with slide .plus 3-citrus trees. New AC , Owner/Agent

Listed with Perfect Choice 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/!


$1,199,000 :: 1211 N REGATTA Drive, Gilbert AZ, 85234

Property Photo

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4 beds, 3 baths
Home size: 3,342 sq ft
Lot Size: 9,584 sq ft
Added: 03/29/22, Last Updated: 05/09/22
Property Type: Single Family
MLS Number: 6375573
Community: REGATTA AT VAL VISTA LAKES
Tract: REGATTA AT VAL VISTA LAKES
The price of this listing was last reduced on 5/9/2022 by 4%
Status: Active


Pickleball anyone? SPECTACULAR VIEW STRAIGHT DOWN THE LAKE FROM THIS WATERFRONT CUSTOM HOME IN MUCH SOUGHT AFTER VAL VISTA LAKES ** gated community ** Primary bedroom plus another bedroom are downstairs ** 2 large bedrooms and a large loft are upstairs** The view from this home is one of the best water views you can find ** Island kitchen and granite counters, loads of cabinets and a gas stove, plus a large pantry ** Primary suite has 2 walk in closets ** Oversized garage doors, and attic storage with ladder ** 3 air conditioning units replaced in 2017 ** Val Vista Lakes has 8 tennis courts, indoor racquetball courts, pickleball, workout room, weight room, banquet room, swimming pool, jacuzzi, man-made beach, and so much more **

Listed with Penfield Properties


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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