Area real-estate experts say that the housing market is recovering, however, and that the Chandler numbers aren't as bad as they appear.
"The situation is improving steadily and we're way past the worst, which was 2009," said Mike Orr, a Mesa housing-market analyst and founder of the Cromford Report. "Far fewer homes are in foreclosure."
The geographic breakdown of distressed properties does not present a true picture because Chandler ZIP codes cover larger areas with higher housing densities than those in neighboring communities, according to Orr.
"Chandler has relatively large ZIP codes," Orr said.
That could be why the central city 85225 has 199 short sales and foreclosures on the market and southeast Chandler's 85249 has 177, more than any others in the region. Several ZIP codes in Mesa, Tempe and Gilbert have more than 100 distressed properties on the market.
However, those numbers are lower than those reported last month, and Chandler's 85225 no longer is among the Valley's top five spots for distressed properties. The five are now heavily concentrated in the Valley fringes and include parts of Laveen, Surprise, Goodyear, Buckeye and Anthem. At the top is Maricopa's 85138 ZIP code, which has 233 short sales and foreclosures on the market.
Bob Behm, the listing service's CEO, said average home prices across the Valley have increased 4.6 percent since October, and homes are on the market for shorter time periods. However, he does not expect the prices will continue to climb at that rate because buyers are more cautious than they were before the recession and rapidly escalating housing costs "are what got us into trouble in the first place."
In another time, home prices would be climbing faster after a recession, according to Orr, especially given the rising demand and shrinking inventory.
"This is an unusual situation where perception trumps reality," Orr said. "There is a negative sentiment toward housing and people don't want to pay the higher prices, so they walk away."
Many of today's buyers are investors and winter visitors, said Chandler real-estate agent Pam Bernard.
"I have a steady stream of buyers from Canada looking for amazing deals," she said.
Investors are buying rentals, catering to a growing population of former homeowners displaced by foreclosures and short sales, she said.
The housing collapse has changed buying habits. More couples are using only one income to qualify for home loans just in case something happens to their jobs, and some potential buyers are holding off and renting for a couple of years just to see what happens, Bernard said.
Distressed properties on the market
Includes foreclosures and short sales.
Chandler:
85225: 168
85249: 161
Click here to search Foreclosure & Short Sale Home in Chandler
Gilbert:
85296: 147
85295: 138
Click here to search Foreclosure & Short Sale Home in Gilbert
Mesa:
85207: 145
85204: 93
Click here to search Foreclosure & Short Sale Home in Mesa
Tempe:
85282: 92
85281: 87
Click here to search Foreclosure & Short Sale Home in Tempe
Ahwatukee Foothills:
85044: 91
