How 2013 ended and where is the market going in 2014?
The past 2 years have provided Phoenix area homeowners with double digit gains, and the market has been in the sellers’ favor. But with higher prices and more sellers looking to take advantage, the balance between buyers and sellers is shifting. Distressed sales (short sales and foreclosures) which were a favorite of investors continue to see significant decreases. Are foreclosures coming back? Will more houses sell in 2014? How long will it take to sell a home in 2014? Are inventory levels still low? Continue to read for answers to these questions.
Where have the distressed sales gone?
It doesn’t seem too long ago that horror stories about getting a short sale closed were all too common. And those foreclosures and short sales that investors eagerly sought after are all but gone. And if you find a Fannie Mae foreclosure, it is probably over-priced when it comes on the market. Foreclosure sales are now quickly becoming a minority of total sales. In most all Phoenix area cities distressed sales have been cut in half or more in the last 12 months. The graph to the left shows distressed sales as a percentage of monthly sales for various cities. Chandler distressed sales went from 36% in Dec. 2012 to 14% in Dec. 2013. Gilbert distressed sales reduced from 37% to 13%, and Glendale from 41% to 20%, and Avondale saw distressed sales change from 52% to 27% while Mesa sent from 35% to 17%. These drops are very not suprising since Notices of Trustee Sale which are a leading indicator of short sales and foreclosures are down to levels not seen since 2006!
Will more homes sell in 2014?
As prices have risen for the past three years, demand or sales of houses has responded to price changes, something economists call ‘Price elasticity of Demand’. The chart to the right shows the sales for the city of Phoenix for years 2011 – 2013 and the first weeks of January 2014. This chart is representative of most valley cities. The bottom line is that demand or sales for houses has decreased as the prices have increased. Additionally, the number of homes for sale has gone up. So it is understandable why sales during the first month of 2014 are lower than the previous 3 years and likely to continue for the year.
How long will it take to sell in 2014?
If you are a seller and wondering how long it will take to sell your home, the graph to the left my be a guideline. It shows how many months of supply of homes are on the market for specific price ranges. As you can see it will depend on the market value of the property. Gone are the days when homes would go on the market Friday and receive multiple offers over the weekend. Even lower prices homes are taking longer than a year ago.
What’s ahead in 2014?
2014 will be a transition year for Phoenix real estate that seeks equilibrium from previous extremes and becomes a normal market(if that’s possible). One of differences between 2013 and 2014 will inventory levels or available homes for sale, both in the number and type. Since mid-2013 the available homes for sale has been rising, and fewer are short sales and foreclosures as noted above.
Price appreciation will be significantly less than in previous years. Reasons for this slow down?
1.) Interest rates will be higher than in the past. A discussion with a good loan officer will be helpful in this regard.
2.) There are not as many investors as there were a year ago when short sales and foreclosures were in high demand due to lower prices.
3.) Higher inventory levels provide buyers more leverage.
4.) Fewer properties will be sold in 2014 than in 2013 as noted above. With more homes for sale in 2014, buyers will have more leverage and homes from which to choose which will dampen the price appreciation we’ve enjoyed for the last 2 years.
In 2014, it will be more important than ever to property price a home, make necessary preparations before going on the market, and getting maximum exposure to qualified buyers.
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.
Related Posts
2013 First Half Real Estate Trends
How has Real Estate Started in 2013?
Over-Priced Fannie Mae Short Sales and Foreclosures
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$659,000 :: 1353 W CRYSTAL SPRINGS Drive, Gilbert AZ, 85233
3 beds, 2.5 baths
Home size: 2,150 sq ft
Lot Size: 3,921 sq ft
Added: 09/21/23, Last Updated: 09/21/23
Property Type: Single Family
MLS Number: 6606304
Community: CORAL POINT REPLAT LOT 1 & 2
Tract: CORAL POINT REPLAT LOT 1 & 2
Status: Active
Embrace this newly remodeled Home. New luxury vinyl plank flooring throughout. American maple white cabinets, quartz counters with walk-in pantry. Both bathroom have matching cabinetry ,tile and countertops keeping the symmetry of the home. Tile patio deck. Cozy loft with skylight. Roof and skylight proximately five years old .Both AC units are 3 years old. Roof and AC units have a 10 year warranty. Water heater two years old updated windows. New Whole House water softener. HOA dues include the lakeside community pool, front & back yard landscaping and painting the house every 7 years.
Listed with Real Broker AZ, 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/!
$1,635,000 :: 1507 E TREASURE COVE Drive, Gilbert AZ, 85234
3 beds, 3.5 baths
Home size: 3,633 sq ft
Lot Size: 14,375 sq ft
Added: 08/30/23, Last Updated: 09/20/23
Property Type: Single Family
MLS Number: 6596878
Community: West Lake Estates of Val Vista Lakes
Tract: West Lake Estates of Val Vista Lakes
The price of this listing was last reduced on 9/20/2023 by 3%
Status: Active
Welcome to this stunning single-level home nestled in the coveted Val Vista Lakes community in Gilbert, AZ. With picturesque waterfront views, this home offers the epitome of tranquil lakeside living. Boasting 3 bedrooms and 3.5 bathrooms, this meticulously designed home provides both elegance and comfort. The open-concept living area showcases ample natural light, highlighting the captivating lake views from various angles.A gourmet kitchen awaits, featuring modern appliances, granite countertops, and an island that's perfect for both meal preparation and casual dining.The primary bedroom suite is a retreat in itself, boasting panoramic lake views and direct access to the outdoor patio. The en-suite bathroom is a sanctuary of relaxation, equipped with dual sinks, a luxurious
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/!
$629,000 :: 1413 W CLEAR SPRING Drive, Gilbert AZ, 85233
3 beds, 3 baths
Home size: 1,797 sq ft
Lot Size: 4,356 sq ft
Added: 09/16/23, Last Updated: 09/20/23
Property Type: Single Family
MLS Number: 6602973
Community: CORAL POINT REPLAT LOT 1 & 2
Tract: CORAL POINT REPLAT LOT 1 & 2
The price of this listing was last reduced on 9/20/2023 by 2%
Status: Active
Fantastic lakefront opportunity priced to sell!! This amazing home offers 3 bedrooms 3 baths. Fish or boat from your very own backyard! This lakeside community provides access to parks, walking trails, and a community pool and spa to enjoy. With easy access to shopping, dining, and entertainment options, you'll have everything you need within a short drive.
Listed with Real Broker AZ, 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/!
$1,550,000 :: 1232 W EDGEWATER Drive, Gilbert AZ, 85233
5 beds, 3.5 baths
Home size: 4,032 sq ft
Lot Size: 10,019 sq ft
Added: 09/15/23, Last Updated: 09/16/23
Property Type: Single Family
MLS Number: 6605570
Community: CATALINA BAY AT THE ISLANDS UNIT 4
Tract: CATALINA BAY AT THE ISLANDS UNIT 4
Status: Active
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Listed with Real Estate Brokers of Arizona
Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!
$2,000,000 :: 1750 E COCO PALM Court, Gilbert AZ, 85234
4 beds, 4 baths
Home size: 3,421 sq ft
Lot Size: 12,197 sq ft
Added: 05/26/23, Last Updated: 09/16/23
Property Type: Single Family
MLS Number: 6560481
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
The price of this listing was last reduced on 9/16/2023 by 5%
Status: Active
Sophistication and style meets waterfront. Elegant single level living await you in this beautifully updated home. Expansive lake views from this lot on the point allow for privacy in the pool and spa. Entire wall of glass slides open giving you large spaces to entertain from the outdoor to indoor kitchen and dining areas. Dreamy kitchen with Thermador 8 burner gas burner stove & dual ovens, Thermador side by side refrigerator and large island with seating for 6. Need Storage? This house has it! Large open family room, dinette & kitchen. All ensuite bedrooms have walk-in closets. Enjoy the outdoor lifestyle with the covered outdoor kitchen that includes a green egg smoker and gas bar-b-que. Heated pool and spa with negative edge so you can soak up the sun with friends or soothe those
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/!
$1,690,000 :: 1726 E QUEEN PALM Drive, Gilbert AZ, 85234
5 beds, 3 baths
Home size: 3,134 sq ft
Lot Size: 11,326 sq ft
Added: 09/14/23, Last Updated: 09/14/23
Property Type: Single Family
MLS Number: 6599248
Community: VAL VISTA LAKES
Tract: VAL VISTA LAKES
Status: Active
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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/!
$1,350,000 :: 2004 E CATAMARAN Drive, Gilbert AZ, 85234
4 beds, 3.5 baths
Home size: 4,038 sq ft
Lot Size: 14,375 sq ft
Added: 05/27/23, Last Updated: 09/07/23
Property Type: Single Family
MLS Number: 6558805
Community: The Regatta at Val Vista
Tract: The Regatta at Val Vista
The price of this listing was last reduced on 9/7/2023 by 4%
Status: Active
Custom waterfront home on the Regatta Lake. Beautiful property on a large lot in gated Val Vista Lakes subdivision. 4 -car garage with a large driveway in a cul-de-sac makes this a one-of-a kind !
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/!
$797,000 :: 1248 W EDGEWATER Drive, Gilbert AZ, 85233
5 beds, 3 baths
Home size: 2,719 sq ft
Lot Size: 7,841 sq ft
Added: 05/11/23, Last Updated: 09/01/23
Property Type: Single Family
MLS Number: 6550410
Community: CATALINA BAY AT THE ISLANDS UNIT 4
Tract: CATALINA BAY AT THE ISLANDS UNIT 4
The price of this listing was last reduced on 9/1/2023 by 3%
Status: Active
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Listed with Real Broker AZ, 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/!
$1,100,000 :: 1031 S CORAL KEY Court, Gilbert AZ, 85233
4 beds, 2.5 baths
Home size: 3,126 sq ft
Lot Size: 12,633 sq ft
Added: 08/16/23, Last Updated: 08/16/23
Property Type: Single Family
MLS Number: 6589216
Community: KEY HARBOR LOT 1-71 TR A-C
Tract: KEY HARBOR LOT 1-71 TR A-C
Status: Active
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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/!
$575,900 :: 1025 W PENINSULA Drive, Gilbert AZ, 85233
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
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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/!