Barely had time to write this update – the market’s teeming with activity in the residential market – but interest continues to lag in vacant land. We’re already seeing results of the AZ governor limiting any municipality from cutting homeowners rights to rent their place – as there’s been a marked increase in sales within the city limits (where short term AirBnB style rentals are mostly allowed).
The Village of Oak Creek (where they’ve upheld the 30 day rental minimum) on the other hand is seeing less activity, less sales and flat pricing in comparison. For those of you shopping on MLS powered websites if you’re looking for vacation rental properties try to focus in on areas 40,41,42,43,44, and 46. Area 45 is designated as VOCA – and they’ve decided for the time being at least – to keep the 30 day rental minimum.
The interest level is peaking this spring and inventory levels are low – so when decent places come on the market – they’re selling quickly. There are currently only 21 available single family homes available within the city limits under $500k. This is by far the fastest moving segment of the market – with 55 sales already this year. That sales rate for this price range comes out to 14 sales per month – and with 21 on the market right now – we have only 6 weeks of inventory in this price range. That’s the lowest level of available <$500k homes we’ve seen in 10 years and signifies a sellers market. If you’re looking to buy in this range – be sure to read my prior post about how to best prepare yourself for a sellers market.
Moving up a notch – our mid range homes ($500k-$1M) within the city limits – there’s considerably more inventory. We’re looking at a current group of 60 available homes and 50 sales this year. That’s a rate of 13 per month – giving us a current 4.6 month inventory of available homes. This is still significantly lower than normal – and this is bordering on a balanced market – but it’s tipping in the favor of sellers right now.
Vacant land sales in all of Sedona saw a jump in sales in February (12 sales), but came back down to earth with only 4 sales in March. I was hoping for an upswing of activity to lead the way for the rest of the year – but we’ll see how the nubmers turn out for April and May. There are 318 available lots in the Sedona area – and 22 tied up with buyers. That’s a pretty decent amount of escrows – so keep an eye out for an upswing in activity in the coming months!
