Summer is finally upon us and the hot days haven't slowed down the white hot real estate market here in Sedona.  Inventory is down, sales are up, and prices are rising again.  It's been a long time coming, but as with all things, real estate is a cyclical market this upswing has been years in the making.  Encouraging signs of the growth of our market include: multiple offers on well priced homes, many homes selling VERY quickly, and a shrinking inventory of homes.  It seems like the pent up demand is being met by the newest homes that hit the xanax no prescription market - as of today, there are 421 homes on the market - with 111 already tied up with other buyers - making a true inventory of 310 available residential units (254 single family homes + 56 condos/manufactured). 

237 residential units have closed to date in 2013 - a bit down from 245 sales last year during the same timeframe.  In a nutshell the year is shaping up like this:

  2012 2013
Total Sales Volume 96,633,000 100,378,000
Average Sold price of a home 394,000 423,000
List price/Sale price % 95% 97%
Average Days on Market 218 195
Price per square foot 172 191

This quick table shows that all the leading indicators are showing an upswing of our Sedona Real Estate Market... for Residential units at least.  Vacant land is a different story, because we're not seeing the price increases across the board for Vacant Land.  There were a few large parcels sold in 2013 - both of which were technically in Sedona, though they're out of town quite a distance and have miles of dirt road to access the parcels.  There are were 55 lots sold in 2012 to date, and this year we are a little above last year with 60 sales of Sedona Vacant land to date.  The great news is that we also have 17 lots in escrow in Sedona. 

All things said, we're experiencing growth again in the market, which is great as a current property owner, but also promising to potential buyers ready to purchase - as it always feels intelligent to buy on the upswing!  If you're years off from purchasing, you'll look back to this time and say to your friends "I wish I bought property in Sedona in 2012 or 2013"

High season is in full swing and buyers are coming from all over to purchase properties as the slow but steady rise in values has started.  Our demographics regularly show people from all 50 states buying property - but I'm seeing an increase in the number of Alaskan license plates and Canadian license plates in our parking lot and on the streets of Sedona. 

Lots of mixed reporting on this year so far in real estate - but on the whole agents will agree that the market is definitely improving.  The number of  Sedona residential sales were down 1% for the first 4 months of the year compared to 2012.  The average price of homes went up as well as we saw an increase from 394k to 409k for the same 4 month timeframe.  Days on market stayed virtually the same - up to 184 from 178.  Our luxury market has really taken off this year with 9 sales completed already over $1M and 12 more in escrow - so 21 total sales (including pending sales).  To give you a sense of how the luxury market matches up to last year,  we sold a total of 21 houses in Sedona over $1M --- in ALL OF 2012.  Assuming that these all close in the next 60 days,  then we'll have sold the same number of $1M homes in Sedona by June 30.  That shows some serious traction in the upper end of our marketplace.

Total number of residential units on the market in Sedona is 421.  Buyers already have 116 of these places in escrow, which makes a total availability of only 305.  If we only look at Single Family Homes, then the picture is a little clearer - we have 336 total homes on the market and 92 in escrow - leaving only 244 homes available in Sedona. 

Vacant land is another story altogether.  We currently have 351 lots on the market with 22 in escrow with other buyers.  38 lots sold during the first 4 months of 2012 and 37 in 2013.  There is a steady recovery underway in vacant land sales, and that makes sellers happy.  The number of sales has not led to an increase in values, but they're thinning the available units - which is the first step to recovery.  Sellers have been waiting for years for the vacant land market to pick back up and it's finally coming around.  Part of this is fueled by developers need for affordable lots to build spec homes - something that didn't really happen from 2006 through mid 2012. 

 

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. 

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!

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.

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