No matter what your mood after the Presidential election, the Sedona real estate market has something to lift your spirits and be thankful for. Both residential and vacant land sales are up in terms of unit sales but the Sedona and VOC zip codes are behaving somewhat differently, so let’s look at them individually.
As we find ourselves in the middle of the busy fall season, it should be noted that it's on target with annual averages. There are currently 392 residential units on the market (includes homes, condos, townhomes, manufactured) and approximately 20% of the available homes are tied up with buyers. There are 85 homes in escrow, which leaves true available inventory at 307 units. If you look closely at the homes in the process of being purchased - the median price is approximately $500k. Of these 85 homes the average market time is 148 days on market - which is about a month shorter than the average market time to sell. This solidifies what I have been telling clients for the last year or so - "If it's priced well when it comes on the market it's often sold in a matter of days."
Inventory of available homes in the lower price ranges is shrinking rapidly - under $300k there are only 3 available homes and an additional 12 condos and townhomes. This is a major decrease in availability over the last year - and there's no end in sight for the upward movement of the lower end of our marketplace. There's a fair bit of interest in the mid range homes ($500k-$750k) with 26 homes currently tied up with buyers, 11 homes in escrow between $750k-$1M, and 4 homes over $1M. Most of the numbers are as expected, but the suprise is the $500k-$750k range coming in much healthier than it has been for the last few years.
The wildcard in the current Sedona real estate market is the January 1st rollout of the short term vacation rentals (see a prior RRN article here). I'm not sure of how this will play out - but there's already an increase in the number of vacation rentals available in Sedona as of January 1! There was also a recent article that showed that an apartment complex has posted eviction notices to tenants and were told that the complex will be rented out as short term rentals. I'm sure that we'll see more about this in the coming months, but a quick look at the inventory of rental homes shows that demand is very high. I'm predicting a rise in sales in the next few months as owners prepare to rent out for both short term and long term. Stay tuned...
I just returned from a road trip to Seattle to visit family and it struck me en route that the real estate market in many parts of the country is entering a new phase. We have survived the downturn with its significant price adjustments, we’ve burned through the distressed property sales phase, seen a comeback in prices — though not to pre-crisis levels in Sedona — and now there is pent-up demand spurring a construction surge in many parts of the country.
As per usual I've got some news for you on the Sedona real estate market - and my guess is that it comes as no suprise to anyone that follows our annual buying trends. Our market ramps up every spring and loads of homes get tied up with buyers and change hands shortly afterwards. As of this second there are:
446 residential units on the market in Sedona
99 in escrow with buyers ( 57 of them are priced under $500k / 36 are between $500k-$1M / 6 priced over $1M. )
347 are currently available
We can further break down the 347 available into:
12 manufactured homes
I can't tell you the last time I saw 100 homes in escrow in our local market, so that's a great sign for the health of the market and for both homebuyers and sellers. We seem to be in a sellers market for homes under $400k as inventory is low and sales numbers are high. It's technically a sellers market if there is less than a 6 month inventory of homes - and right now we're at approximately a 4 month inventory.
Another interesting item that I learned this week was WHERE our buyers come from. The results were from all purchases of Sedona property in 2015. During that time there were 455 total transactions - and a whopping 57% of them came from.... guess what state?? I know most of you want to say California - but it's not true - they only make up 11% of our Sedona buyers. Almost 60% of our buyers come from AZ. It's funny to hear people tell us we should advertise in the New York Times (2 buyers came from NY last year...) or China or a multitiude of other places - when the fact is - our buyers aren't coming from there. In fact in all of 2015, there were only 2 international buyers and they were both from Canada. I think that the myth of the international buyer is over...
Last month I commented on the amount of new construction I saw on my summer vacation to Colorado, Seattle and San Francisco. While Sedona does not have the same vibrant real estate market as those two large metropolitan areas, there’s still a lot happening in our little town.
Real estate reached a fevered pitch this springtime, but is quickly coming to a close. We've seen mulitple offers on homes, some being bid up past their listing prices - but the the most part I'd say that these homes were in the sub $600k price range - the meat of the market. There are currently over 100 homes already in escrow with buyers - so that translates into about 25% of our current inventory of Sedona homes is already spoken for. The market cools somewhat in the mid-range homes (from $600k-$1M), and the upper end homes (over $1M) has seen a recent uptick of activity - with 9 homes over $1M in escrow.
On another note - people often talk about international buyers - I think I debunked that myth last month's blog - but there is some evidence of international sellers this year. I've sold one home already for a Canadian seller this year - and we're getting ready to list another one. This article might explain why Canadians are selling homes. Fletcher Wilcox says: "If a Canadian bought a house in the U.S. in 2011 and paid $150,000 USD, they would have paid close to $155,000 CAD. In 2015, if that same property, because of appreciation, sold for $225,000 USD, a Canadian seller would receive $300,000 CAD, almost double what they paid in Canadian dollars in 2011. Quite a gain. So far in 2016, the Canadian dollar is even weaker against the U.S. dollar than last year."
As per usual, the Sedona Real Estate market ramped up on schedule and last week was one of the busiest in recent memory for home sales. This past weekend, there were 7 new listings that came on market and 7 that went pending with buyers. Overall we've got 400 total residential properties listed and 75 of them are already tied up with buyers. That leaves only 325 units available - 277 homes 34 condos and a dozen or more manufactured homes. Inventory is getting limited in the sub $300k price range - with only 35 properties currently available - and only 9 of these are single family homes. So, if you're shopping for a home in this range you'd be wise to hurry. I'd received an email a few weeks ago from a client looking for a SFR up to $325k - and there were 15 available at the time - and by the time he arrived there were only 10 left.
Between 300k-500k there's a load of activity and 61 available residential units on the market (single family homes, condos, townhomes and manufactured homes). With 82 sales in the last 6 months, it's technically a sellers market as we currently have less than a 6 month inventory of homes. That doesn't mean that prices are spiking, but we are seeing some homes pushing the upper limits of comparable sales (if they're in great shape, have views, and already modernized). Pricing is still important - so if you're considering putting a home on the market this spring, check with your agent about the range in which you should price your house.
Vacant land is still dragging along, with 347 lots currently available and 42 sales in the last 6 months - things are still favoring the buyers. Expect to get a good deal on a lot if you're a true buyer, but be warned... by the time you add up costs: design fees, impact fees, utility fees, engineering costs, and construction - you'll certainly be paying a premium for that new Dream home. It's still a better bargain to find an existing home that you'll like - and resort to buying a lot and building if you don't find a home that fits your needs.