Wrapping up 2011 - this Sedona real estate market update should give you a fair picture of the last month's activity but stay tuned and I'll do a year-end version in early January to summarize "the year that was".

We currently have 489 residential units on the market (includes single family homes, condos, manufactured homes, etc) and 69 of these are already tied up with other buyers.  This makes 420 homes on the market at this instant... of these homes the breakdown is as follows:

322 Single Family Homes - 69 Condos/Patio Homes/Townhomes - 29 Manufactured homes

I don't have the breakdown for the number of homes available in December of last year, but I can tell you that the total number of homes on the market was 530 - so we're looking at an 8% decline in the number of available homes compared to this time last year. 

Everyone always seems to be interested in the number of Distressed sales (short sales and Foreclosures) - so let's evaluate our current marketplace and sales level.  Of the 489 residential units on the market - 69 of them are Distressed sales - so this makes up about 14% of our current market.  This number has slid downwards over the past year - if you're a dedicated reader, you've heard me quote 17-19% over the past few years.  This decline seems to have been fairly steady - with investors getting back into the market to pick up the best deals.  The sales percentage has also fallen - in November the percentage of sales that were distressed was only 30% - down from 40% over the last 2+ years.  This could signal a shift in the marketplace - teamed up with less inventory - so watch the sub-$400k market over the next few months to see if this balanced market shifts to a sellers market. 

Investor activity has been picking up, but rental units are getting gobbled up by Sedona residents.  I'm not sure whether the increase in renters is due to - but there isn't much inventory of rental homes in the city of Sedona in particular.  In recent conversations with the property managers around town - they need more homes to rent - so if you're thinking about rental property - now might be the time!

In December's closing days I'd like to take the opportunity to thank the few dozen readers that tune in regularly and even email to ask about my next post.  Feel free to contact me when you need personal assistance and I wish you all a Merry Xmas and a happy new year!

Wow - the year is going quickly - before you know it the cold weather will set in (50's) and we'll be waiting for the first signs of spring.  But let's not get ahead of ourselves here - we're in the middle of Autumn and town couldn't be more beautiful.  The daytime temps have been in the 65-75 or so and nightime temps in the 40's.  It's ideal weather to go for a hike or mountain bike ride - or just drive up to Orchards store in Oak Creek Canyon and pick up a half gallon of Organic Sweet Apple Cider from local orchards.  I did this a week or so back after hitting West Fork Trail about 9 miles north of Uptown Sedona.  The fall colors are AMAZING and there seem to be so many more reds and oranges this year than past years.  Regardless, the fall scenery there is amazing and if you haven't been there yet, just wait and the colors along Oak Creek will be popping within the next week.  It's a great time for a visit to Sedona.

The real estate world is busy here in Sedona - we currently have 504 residential properties on the market with 55 of these already tied up with other buyers.  There are only 204 residential properties within the city limits, the rest are in Oak Creek Canyon, The Village or off the Loop Road area. 

Distressed Properties

There are only 19 foreclosed properties available in the entire Sedona area - and 4 are already tied up with a buyer - so that makes only 15 available Foreclosed Properties in Sedona.  We're not innundated with foreclosed properties like other areas of the state - so don't expect plenty of availability in this segment of the market.  There are however 40 short sale residences listed - and 13 of these are already spoken for.  Most of these properties will sell as short sales - because banks have been getting easier to work with and are more accustomed to the procedures to make these deals work. 

409 homes have sold in Sedona to date - 107 were foreclosed homes and 48 were short sales.  In all - distressed properties make up less than 38% of our market - and this number is slightly lower than last year. 

 

The summer lull in Sedona real estate usually drags on through the end of August for most Sedona agents, but this year has been marked by high levels of buyer activity through the warm summer months.  Our overall inventory of homes is at it's lowest point in the last 4+ years and we currently have 481 residences on the market.  Of these homes, 54 are already in escrow - leaving a lotal of 427 truly available homes.  The thinning of inventory is a great sign for the overall marketplace and the sellers who've been taking a beating over the last few years.  Things are starting to look up!

Distressed homes still outperform the market by accounting for 120 of the 321 sales for 2001 YTD.  That's only 37% of all sales - which is down from prior reports of 40%.  There are currently 72 Distressed homes (short sales or foreclosures) out of the 481 total - which makes our inventory of distressed homes only 15% of the market.  This number is also down over prior reports - maybe this is the leading edge of a trend... stay tuned to find out!

Some highlights of the current marketplace:

  1. Luxury Sales are up!  There have been 15 residential Sales this year over $1M - LAST YEAR we sold 9 during the same time frame
  2. Sub $400k home market takes a turn for the better - statistics show that we have a balanced market.  A 6 months supply of homes at current sale rates indicates that we have a balanced market and that it's neither a buyers or sellers market in this price range!
  3. 76 sales this year have been completed in under two months.  This shows that many homes are selling quickly - and we're often seeing multiple offers.  Buyers are advised to be pre-approved for a loan or haivng "proof of funds" when you're shopping for Sedona homes.
  4. Mortgage rates are INCREDIBLY low - I've had buyers get quotes of interest rates in the low 4% range!  Wow - with rates like these it makes the homes even more affordable!

The heat of summer has passed us by and led us to the 2nd busiest time of year in the Sedona Real Estate market.  We'll be busy typically through the end of November and this year is shaping up to be no exception to that rule.  There is good news in the real estate arena for Sedona - mainly the number of available homes has decreased consistently and is down to the lowest level for several years.  Right now there are only 515 residential units on the market - a number that shows a 30% decline in the number of available homes over the last 3 years.  The number of available homes is actually less - because 55 of them are already in escrow (pending sale/tied up with another buyer).  We have a balanced supply of homes in the sub-$400k market here in Sedona - which means that at current sales levels we have less than a 6 month supply of homes.  Although our upper end of the market is healthy (with 16 sales already this year, we've surpassed the entire total of $1M+ sales for 2010) we do still have a 3 year supply of homes if the price is over $1M.

All in all, we're experiencing some signs of life in our current marketplace - and overall we're still a buyers market, but if you're looking to purchase a home for under $400k - the offerings are getting slimmer by the day.

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