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

$515,000 :: 1326 W CORAL REEF Drive, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,048 sq ft
Lot Size: 2,178 sq ft
Added: 05/14/21, Last Updated: 05/14/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6234271
Community: TOWNHOMES ON CORAL REEF
Tract: TOWNHOMES ON CORAL REEF
Status: Active


Waterfront, lock and leave living at its best! This freshly updated townhome on the water in Islands is that perfect low maintenance, relaxing home you've been looking for. Dramatic double height ceilings in the living room welcome you to this well cared for and turn key property. Kitchen opens to the dining room and both share views of the water. Laundry, garage access, half bath and storage are downstairs. Upstairs you'll find 3 bedrooms and 2 more baths. Master bedroom boasts huge walk-in closet, snail shower & private, lakeside balcony. Solar tube skylights bring in lots of natural light while keeping the heat out. Secondary bedrooms have balcony access as well. Great location, close to freeways, shopping, schools and more. These units are rare in normal markets, so don't delay!

Listed with eXp 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/!


$500,000 :: 1438 W CORAL REEF Drive, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,289 sq ft
Lot Size: 1,743 sq ft
Added: 05/06/21, Last Updated: 05/13/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6232253
Community: TOWNHOMES ON CORAL REEF Islands
Tract: TOWNHOMES ON CORAL REEF Islands
Status: Active


You'll love this stunning waterfront home now available!! Enter home to see a dramatic entry with spiral-type staircase, a lovely den/office, and an open living room that overlooks the kitchen. Spotless kitchen has stainless steel appliances, center island w/breakfast bar, plenty of cabinets, and pantry. Upstairs, you'll find an adorable loft with a window bench! The master retreat includes sliding doors that open to a private balcony, large walk-in closet, a window bench, and a full bath w/dual sinks & separate tub/shower. Both of the additional bedrooms include private access to the balcony! Out back, spend relaxing evenings while gazing at the amazing lake which includes a private dock for your personal boat. This gem won't last on the market! Make an offer now!

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/!


$420,000 :: 1124 W EDGEWATER Drive, Gilbert AZ, 85233

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2 beds, 2.5 baths
Home size: 1,358 sq ft
Lot Size: 2,178 sq ft
Added: 05/13/21, Last Updated: 05/13/21
Property Type: Condo/Townhouse/Co-Op
MLS Number: 6234997
Community: COVE AT THE ISLANDS LOT 1-173 TR A-Z AA-DD
Tract: COVE AT THE ISLANDS LOT 1-173 TR A-Z AA-DD
Status: Active


Absolutely gorgeous Waterfront Townhome in Gilbert's The Islands Lake Community. Completely updated in recent years: new kitchen cabinets w SS appliances & quartz countertops, updated baths (master has walk-in tile & glass), carpet & tile, lighting, fans, int. paint, water heater & HVAC in 2017. You'll absolutely love living on the lake (boating, fishing, sunsets!). Perfect full-time residence or ''lock & leave'' vacation retreat. HOA maintains community pool, front landscaping, roof & ext paint. The Islands offers 3 lakes, walking/biking paths, large community park & social events (Concerts in The Park, Easter Egg Hunt, Holiday Boat Parades, Fall Car Show & more!) You'll truly love this home & community... just minutes away from downtown Gilbert and Chandler restaurant district!!

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/!


$725,000 :: 1302 W Windrift Way, Gilbert AZ, 85233

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3 beds, 2.5 baths
Home size: 2,023 sq ft
Lot Size: 12,197 sq ft
Added: 04/22/21, Last Updated: 05/12/21
Property Type: Single Family
MLS Number: 6223848
Community: SANDCASTLE VILLAGE
Tract: SANDCASTLE VILLAGE
The price of this listing was last increased on 5/10/2021 by 4%
Status: Active


WELCOME TO YOUR PRIVATE ''OASIS'' IN THE ARIZONA DESERT! ** BRAND NEW TILE ROOF TO BE INSTALLED, JUNE 1ST! 10 YR WARRANTY! BRAND NEW A/C UNIT TO BE INSTALLED 5/20! INVESTOR VERY RARE OPPORTUNITY! ENJOY THE STUNNING VIEWS FROM THIS CORNER LOT WATERFRONT HOME! THE LAKE IS A PRIVATE LAKE THAT ALLOWS ELECTRIC PONTOON BOATS FOR YOUR EVENING COCKTAIL CRUISE!! THIS GORGEOUS HOME BOASTS A LARGE DIVNG POOL, HOT TUB AND PRIVATE DOCK THAT YOU CAN FISH FROM! RECENTLY REMODELED! PRIVATE LAKE DIRECT ACCESS! THREE BEDROOMS UPSTAIRS WITH AN ADDITIONAL LOFT! NORTH/SOUTH EXPOSURE!LIVE THE GOOD LIFE HERE IN THE ''ISLANDS!'' OWNER/AGENT

Listed with Apartments Now


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


$669,000 :: 395 W Sagebrush Street, Gilbert AZ, 85233

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4 beds, 2.5 baths
Home size: 2,993 sq ft
Lot Size: 9,148 sq ft
Added: 05/08/21, Last Updated: 05/08/21
Property Type: Single Family
MLS Number: 6233471
Community: LAGO ESTANCIA
Tract: LAGO ESTANCIA
Status: Active


Beautiful home on a premium lake front lot in the amazing community of Lago Estancia. Open floor plan with four bedrooms, loft and 2.5 baths. Amazing kitchen with upgraded cabinetry, plentiful pantry space. Flooring and bath finishes in tile, travertine, marble and slate. Upper level has solid French maritime pine flooring. 60k in upgrades since 2019 include new roof, high efficiency windows, AC system, exterior paint and pool. Serene backyard features two large covered patios, remodeled private pool, incredible lake views. One of very few homes with direct private lake access and no walking path traffic. Minutes from old town Gilbert on the water canal. Community has picnic area, walking and bike paths, children's park with playground. Don't miss this very special home.

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/!


$1,700,000 :: 188 N SHORE Lane, Gilbert AZ, 85233

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3 beds, 4 baths
Home size: 5,150 sq ft
Lot Size: 20,038 sq ft
Added: 05/07/21, Last Updated: 05/07/21
Property Type: Single Family
MLS Number: 6233011
Community: CRYSTAL POINT ESTATES
Tract: CRYSTAL POINT ESTATES
Status: Active


Amazing Custom home in your own gated Championship Private Water Ski lake with private dock. Heated Spa & Pool, commercial mist system, pool air conditioning & mist system. Fire pit system, back yard lake lined Tiki torches propane underground system, 40 ft slide gates at pool for lake view pool, 3 bedrooms + office on main level & 3.5 bathrooms. All bedrooms have private bathrooms, gas fireplaces and outside fire features, fire pits propane driven, game room upstairs with full bar, half bathroom, card room & deck overlooking the water and pool below. Gourmet kitchen with Dacor gas range, beautiful slab granite counters and monster walk in pantry. Full home security system & full property sound system, Property will convey AS IS - 50 Amp service at South side of home for RV hookup.

Listed with Prime House 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/!


$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/!


 

 

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