ALL MARKETS ARE LOCAL - - - CHECK OUT SEDONA!!!

SEDONA MARKET UPDATE FIRST HALF 2009

You probably have read or watched all of the news reports about the recovery in the housing market and increase in home sales across the country and may be wondering what's happening in the Sedona real estate market. The bottom line is that Sedona is experiencing similar trends; however, the pick up in the market started earlier and appears to be moving more quickly. Please visit our website at www.Homes-Sedona.com for information on Sedona and the Verde Valley.

During the 1^st half of this year there were 146 sales in the Sedona market, an increase of 29% over the same period last year. The average selling price for the 1^st half was $507,000 a drop of 20% from $633,000 a year ago. Most of the action was in homes priced under $500,000 with 59% of the total. Of these 48% were foreclosed bank owned property (REO) and pre-foreclosure short sale property.

Overall, average prices, when compared to the average sales price of non REO/short sales were 10% lower for short sale properties and 37% lower for REO properties. REO properties sell relatively quickly and we are seeing multiple offers on aggressively priced homes. At the rate of sales experienced in the 1^st half, the current inventory of REO properties will sell out in the next 2 - 3 months.

Buyers are clearly looking for and getting deals. We are seeing some real bargains as seller fatigue sets in and banks unload their REO property. The Sedona market appears to have bottomed with savvy buyers returning to the market to take advantage of these bargains before prices begin to move up once again.

MOST IMPORTANTLY, LONG TERM GROWTH FUNDAMENTALS REMAIN STRONG!

Sedona inventories are probably as high as we will see for a long time, motivated sellers are reducing asking prices regularly and mortgage rates remain at historically low levels. This is clearly one of the best buying opportunities in years and one that we probably will not see again.

Sedona is a very attractive and special place that is an island of private property, landlocked by the National Forests and largely built out. The long term outlook for value growth remains strong as the balance between supply and demand shifts back to a sellers market over the next few years. Sedona's unique beauty, mild four season climate and rich culture will continue to drive demand from retiring Boomers and second/vacation home buyers. To learn more or to view homes for sale in Sedona, please visit our website www.Homes-Sedona.com .