We regularly tell both buyers and sellers that high season starts sometime after Valentine's day, so if you don't see what you like during the winter, wait until the spring. Sellers hold onto their listings and put them on the market now - to take advantage of the annual spring rush to purchase properties. This year is no exception. There are currently 363 residential units on the market in the Sedona area (includes Single Family homes, condos, patio homes, and manufactured homes) - of which, 87 are already in escrow. This weekend the weather is absolutely perfect, and I'd expect many more homes to go pending today. The most sought after segment of the market is the sub-$500k homes - and there are 60 of these already tied up with buyers. We're all hoping for more properties to hit the market soon - otherwise at this pace we'll be sold out of Sedona homes by the end of June! If you're thinking of putting your home on the market, the timing couldn't be better, and if you're looking - be prepared to act quickly. Speak to a mortgage lender before your arrival to secure a prequalification letter to prove to sellers that you've spoken with a lender and are pre-approved for a loan. This can go a long way during negotiations and can push you over the edge if there are multiple offers on a home! Good luck and happy searching!
We're on the cusp of the busy season here in Sedona - and within a few weeks the lid will blow open and you'll see activity ramp up for the spring buying season. Typically, local sellers hold off on listing their homes during the slow winter months and go live with listings at the end of February or beginning of March. Look for more well priced homes to hit the market and for many properties to sell quickly - as there's some pent up demand for properties under $500k.
There are currently 376 residential units on the market in Sedona and a whopping 85 already in escrow with other buyers. That's a very high level of activity for a time of year that's supposed to be the slowest of the year! 67% of the homes in escrow are priced under $500k - and inventory in this much sought-after category is at a 8 year low. It's a sellers market in this price range, so although we haven't seen any price gains, look for this in the immediate future. Current pricing on homes under $500k is hovering around $200 per square foot - so use this as a loose guide when searching for Sedona homes. It's also important to remember that you'll easily pay more than the going average if you're looking for a home in above average condition or with above average views.
The other trending story in the Sedona real estate market is the decline in overall numbers of distressed homes. Both foreclosed and short sales are down by almost 50% over the last year - and with the number of short sales shrinking even quicker, my guess is that the foreclosures will be drying up soon as well.
Our first fall/winter storm this past weekend seems to coincide with the slowdown of our local real estate market. There are currently 409 residential units on the market, with69 of these already tied up with other buyers. If you trim out the condos/patio homes/manufactured homes, there are only 256 single family homes that are truly available in the Sedona area.
I'd say that the biggest news for our marketplace has to be the buy xanax online dropoff of foreclosed homes hitting the market. There are currently 18 foreclosed homes available in today's market and only 3 short sales. Short sales show that the homeowner is in financial straits - and could potentially turn into a foreclosure. Only three homes with short sale status indicates a future dropoff of foreclosures as well.
Home sales in 2012 show a small increase in price per square foot for most price categories under $1 Million. I would expect prices to stay steady or tick upwards very slowly over the next year or so. We're still at historic lows for mortgage rates, so although many buyers are buying homes for cash, savvy buyers are borrowing money at low rates (some under 3.5%) and taking the mortgage interest deduction as a writeoff on taxes.
The only other news is that the former Cor d'Amor subdivision - near the Sedona Medical Center has resurfaced under another name - Rimstone. The prior developer lost the property to the bank and it's been sitting fallow for years after the streets and infrastructure were put in - and a new owner has purchased the land and has launched the lots on the open market for $125k-$300k. I'd heard a rumor that a local builder put in an offer on several lots to cash in on the developer financing special - but none of these show as pending on our local MLS system - so they appear to be all available at this time.
Cooler nights have taken hold in the Verde Valley and we're into the best season of the year. Autumn days are typically sunny with clear blue skies and huge puffy white clouds - and the nights are cool and crisp - just cool enough to wear a jacket again! This string of uninterrupted great weather usually brings buyers back to the Sedona real estate world and this year is no exception. The main difference this year is that our inventory of available homes and land has shrunk by 20% over the past year and that vacant land is starting to sell again.
The residential market is picking up steam - there are 409 residential units (homes, condos, townhomes included) on the market, and 69 of these are already in escrow. The single family home market is 309 homes available and 48 already in escrow. The bottom end of the home market (sub $300k) is pretty well picked over - with only 30 homes available in this price range. The last 6 months show 86 home sales, so with a 2 month supply of homes, this is a sellers market in this price range! Well priced homes in this range are moving quicker by the week.
There are 146 mid range homes on the market ($300k-$600k) and 24 are already tied up with other buyers. The average price per square foot for homes sold in this range is hovering in the $185 per squre foot range - up marginally over last year.
The big story may be our re-emerging vacant land market. For years, this segment of the market has been dragging - but a recent upswing of activity bodes well for the Sedona region. We're a few days away from topping the number of land sales for all of last year... with more than a quarter of the year to go. A few local builders are buying the best deals (under $125k in the city limits) to build spec homes, and thats fueling a bit of a run on vacant land. There is little activity in the vacant land market over $250k - but look for parcels to sell over the next year in the $125k-$175k range as the lower end of the market slowly goes away.
Short Sales and Foreclosures are also going away - as we currently have 23 short sales and 16 foreclosed properties on the market. 7 of the foreclosures are already tied up - leaving a total of 9 available foreclosed homes on the market today. This also points us in the right direction and shows signs of future strength in our Sedona Real Estate market!
Sedona Real Estate market conditions continue to show signs of recovery - continuing the trend from 2012. At year end 2012, we had 11 months that had higher sales amounts than 2011 - and we saw the first average price per square foot increase in 6 years. We ended the year with an average price per square foot of $185... up from $173 in 2011.
Across the board, prices went up in 2012 - in every price category except the $1.5M-$2M luxury market. The overall number of sales also increased by 14% over 2011 - Sedona saw a total number of home sales hit 543 (477 in 2011). These two major indicators of the health of the market are bolstered by an overall decrease in availability of homes. The total number of residences and vacant land on the market on 1/1/13 was 732. That's the lowest number of available properties in 6 years. If we're seeing a slight price increase, total number of homes on the rise, and lower inventory - the signs are all pointing in one direction. Take a guess?
There is a current inventory of 365 residential units available in Sedona, and 58 are already in escrow - so that's about 16% of our inventory is already spoken for. There are currently 338 vacant land listings - with 10 currently in escrow.
Vacant land sales did manage an increase in 2012 - with the total number of sales set at 119. That shows a nearly 25% increase in the number of vacant land sales in 2012 - compared to 2011.
If you have questions about the market, or about individual homes - feel free to comment on this blog or send me a direct email!
Even though the day is perfect 80 degrees, the skies are clear and fall is in the air - I'm sitting here in front of my computer. Shame on me. Office time has been at a premium lately due to the busy market conditions and unreal weather for running, hiking, mountain biking and exploring the red rocks of Sedona. Overall our market condtions are good - with 10% more sales YTD over last year.
Inventory of available homes continues to fall - we're currently at a 7 year low for available homes in Sedona. There are only 433 residential units on the market in our area (324 of these are Single Family Homes - the rest are condos/patio homes/manufactured homes) and 87 of these are already tied up with other buyers - leaving only 346 residential units (and only 269 homes truly available!)
We're seeing more and more multiple offers on homes - primarily on homes under $400k. This segment of the market has the most number of sales and the least amount of inventory. Currently there are only 77 homes in town that are priced under $400k and are still available... So I believe we're seeing a textbook example of Economics 101 - decrease in supply and increase in demand. What we're not seeing yet is any market increase in pricing. Im sure that's due to come as inventory continutes to tighten. In this price range we're averaging about $165 per square foot - but we still see multiple offers on homes priced at $230 per square foot! This shows that price per square foot is just one way to see if you're getting a good value - but by no means should this be the sole determining factor in buying a home. Buyers that say - "I won't pay more than $180 per square foot for any home" (or whatever the current town average) are only going to see average quality homes without views. Factors like neighborhood, age of the home, condition, proximity to National Forest, etc - can all have a dramatic effect on the $/sq ft.
We're still getting questions about foreclosed homes, but for the most part, these have dried up. We've currently have 12 available homes that are bank-owned and 6 short sales. At one time, the distressed property market made up 17% of inventory - it's now dipped to 5% of the marketplace. These same distressed homes accounted for 40% of sales 2-3 years ago, but now only account for 23% YTD.
Regardless of the statistics, there are still great homes on the market at affordable prices.... so if you're looking, be sure to get in touch with your Realtor soon! If the right home isn't on the market for a reasonable price - tell them to keep you in mind when new homes hit the market.
The dog days of summer have arrived... warm days, getting cloudy in the afternoon, then a bit of rain and unparalleled sunsets almost every night. Days are already getting shorter and the evenings are getting cooler (upper 60's) - so the best time of year is near. Our warm days have signaled that we're past the midway point in our summer slowdown and we're about to get busy again in September for the Sedona real estate market. Much has happened since my last update - many luxury homes have sold, and we've continued to narrow the inventory of homes in the most popular price range (sub $400k).
Short Sales and Foreclosures have thinned out considerably - currently making up 11% of the overall inventory of single Family homes in Sedona. This marks a 33% drop in distressed sales - as the percentage was 17% for over two years. Distress sales make up 23% of the SOLD residential properties in 2012 - as opposed to 40% in the prior years. This shows a serious shrinkage in the number and availability of distressed homes in town. Certain price ranges are starting to go away as well... for the last 18 months there were dozens of homes in town under $250k - but now there are only 14 currently available. I believe that the time is coming quickly when this market will disappear again - mark my words.
On the upper end of the market (over $1M) we sold 15 homes in 2011 - and we've already had 16 sales of residential properties this year to date. It appears that people are already feeling more confident about the state of the economy and future promise for growth and this is translating into a healthy market for luxury homes in Sedona. Price per square foot has come down a bit, but this segment of the market is doing well compared to the past few years!