2014 Real Estate Market Update

How 2013 ended and where is the market going in  2014?Waterfront View II

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?

Dec 2013 Distressed Sales

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?Phoenix sales per week 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?

Months Supply Feb 2014If 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?Active Listings by Category

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.

Pontoon boat viewIn 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

Boating in Phoenix Residential Lakes

Gilbert Home Search

$599,900 :: 136 N STARBOARD Drive, Gilbert AZ, 85234

Property Photo

Mls Icon

4 beds, 2.5 baths
Home size: 2,177 sq ft
Lot Size: 7,841 sq ft
Added: 09/20/21, Last Updated: 09/20/21
Property Type: Single Family
MLS Number: 6295652
Community: EAST LAKE AT WIND DRIFT LOT 1-46 TR A,B
Tract: EAST LAKE AT WIND DRIFT LOT 1-46 TR A,B
Status: Active


Welcome to the waterfront community of East Lake in central Gilbert. This 4 bedroom 2.5 bath home has been remodeled from the studs and shows like a new build model. The pictures tell the story! All mechanicals are brand new... a/c units/air handler and ducting & water heater. All flooring (tile and carpet new). Amazing designer touches in all bathrooms. Oversized master bedroom with lake views master bath features tiled stand alone shower with seamless glass enclosure and separate soaker tub. Different cabinet finishes in all 3 bathrooms and kitchen. Spacious kitchen with white shaker cabinets, some with pull out shelving, new disposal and faucet sink combo. Breakfast bar and eat in area. Family room (with fireplace) right off the kitchen which makes a good entertaining space.

Listed with Realty ONE Group


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


$760,000 :: 602 N Mondel Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

5 beds, 3.5 baths
Home size: 3,943 sq ft
Lot Size: 9,584 sq ft
Added: 05/19/21, Last Updated: 09/16/21
Property Type: Single Family
MLS Number: 6226707
Community: Playa Del Rey
Tract: Playa Del Rey
The price of this listing was last reduced on 9/16/2021 by 2%
Status: Active


FULLY PAID Solar Panels with back up battery keeps your electricity bills to a minimum. Popular DUAL master bedrooms plan. Gated Ski lake community. True to the builders name AMZ, you are greeted into this Amazing home with crystal chandeliers, magnificent ceilings, brand new neutral paint. Two master suites included in 5 extra large bedrooms PLUS Loft, multiple rooms with walk-in closets. Owner extended the covered patio to include patio cover in the formal area. Master Balcony looks into the beautiful treelined waters. You will experience views from Family Room, Living Room, Guest room and both the Master Suites. Kitchen has exceptional quality cherry cabinets that are so hard to find these days. New Carpet, new paint in the garage, entertaining Ramada, Barbecue with granite counters.

Listed with United Brokers Group


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


$560,000 :: 1442 W CORAL REEF Drive, Gilbert AZ, 85233

Property Photo

Mls Icon

3 beds, 3 baths
Home size: 2,289 sq ft
Lot Size: 1,743 sq ft
Added: 06/18/21, Last Updated: 09/09/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6239386
Community: the islandstownhomes on coral reef
Tract: the islandstownhomes on coral reef
The price of this listing was last reduced on 9/9/2021 by 2%
Status: Active


Lake front property! Bring your paddle boats, pontoons, kyaks, paddle boards, canoes and troll around in these beautiful water. This fantastic water front property is waiting for you to call it home. Liveable floor plan. Beautiful views from your patio and balcony. Travetine floors, master travertine shower and surrounds- spacious bedrooms, open greatroom and kitchen with beautiful granite counters and island. Den downstairs and loft upstairs. Perfect lock and leave home as the HOA maintains outside. Just put in a boat dock and you are ready to relax and have fun right out your backdoor.

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/!


$1,287,461 :: 1452 E BLUE RIDGE Way, Gilbert AZ, 85298

Property Photo

Mls Icon

4 beds, 3.5 baths
Home size: 3,949 sq ft
Lot Size: 12,633 sq ft
Added: 07/28/21, Last Updated: 09/02/21
Property Type: Single Family
MLS Number: 6270680
Community: HAMSTRA DAIRY PHASE 1 REPLAT
Tract: HAMSTRA DAIRY PHASE 1 REPLAT
The price of this listing was last increased on 9/2/2021 by 0%
Status: Active


Located in the master-planned community of Waterston with a 7-acre Central Park and Lake this single story MODEL home features black gourmet stainless steel appliances with a G.E. 36'' gas cooktop, double wall ovens, professional 36'' vented hood, microwave, dishwasher and refrigerator, granite and quartz kitchen countertops, designer kitchen backsplash, Timberlake Portfolio Lusanne maple truffle kitchen cabinets, oversized kitchen island, two-tone interior paint, 12' ceiling at great room, walk-in shower at primary bath, stackable washer and dryer at primary suite closet, slider at gameroom, exterior fireplace in courtyard, exterior French door at primary suite, professionally landscaped front and back, pavers at driveway and porch and so much more. Close of escrow on or before 11/15/21

Listed with Tri Pointe Homes Arizona 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/!


$349,900 :: 2670 S VOYAGER Drive #109, Gilbert AZ, 85295

Property Photo

Mls Icon

2 beds, 2 baths
Home size: 1,006 sq ft
Lot Size: 872 sq ft
Added: 08/23/21, Last Updated: 08/23/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6283225
Community: VAL VISTA CLASSIC PARCEL 3 CONDOMINIUM AMD
Tract: VAL VISTA CLASSIC PARCEL 3 CONDOMINIUM AMD
Status: Active


Located in the highly sought after GATED neighborhood of Annecy. This spectacular residence sits on the waterfront within a gated community that is close to great schools, shopping, fine dining, freeways, hospitals and more. This residence features a spacious kitchen with granite counters, upgraded cabinets, stainless steel appliances & tile backsplash. Kitchen opens to a great room and has tile & bamboo wood flooring, beautiful window treatments, vaulted ceilings and numerous decorative touches. Master bedroom includes a large master bathroom and walk-in closet. 2nd bedroom/den + additional full bathroom. Downstairs features a 2nd family room. 2 car garage with cabinets, work bench and plenty of storage room.

Listed with Venture REI, 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 :: 1817 E BAY TREE Court, Gilbert AZ, 85234

Property Photo

Mls Icon

3 beds, 3.5 baths
Home size: 2,780 sq ft
Lot Size: 11,762 sq ft
Added: 08/06/21, Last Updated: 08/06/21
Property Type: Single Family
MLS Number: 6264581
Community: LAKESIDE AT VAL VISTA LAKES
Tract: LAKESIDE AT VAL VISTA LAKES
Status: Active


Beautiful custom waterfront home in gated Lakeside subdivision at Val Vista Lakes. Relax and enjoy the sunsets in your pool or spa while enjoying the gorgeous lake views! Take a spin around the lake at sunset and stop for a concert on the lake or meet friends at the clubhouse! Large bedroom suites up and down. Upstairs suite has large balcony and walk-in closets with separate tub and shower. Rare extended length, temperature controlled RV Garage for a boat, Razor or trailered toys. (Not motorhome height) Unique garage could allow more than 3 autos.

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/!


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

Property Photo

Mls Icon

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/!


 

 

Leave a Reply

Your email address will not be published. Required fields are marked *