Barbara Baker, Sedona Arizona

Due to the lower price points in the Sedona marketplace, buyers who have always wanted to live in Sedona and previously couldn't afford it, buyer's who always DREAMED for a 2nd home in Sedona, are now snapping up our low foreclosures and short sale properties. Our residential resale market is seeing a surge of activity. That will continue for quite a while. However, if you are thinking of buying... now... stop thinking and buy! Or you could miss out. Interest rates are creeping up.... and just a 1 % point higher interest rate will offset a 10% reduction in the price of a home. So why wait! Take advantage of the market now. And if you are a seller - please, please, do yourself a favor - and price the property to sell, not to sit. To sell - to attract a buyer. I have seller's say to me... Well, I don't want to give it away! Your not giving it away. A price reduction will pique a buyer's interest, and you have to be lower than the next guy. Your still making money - and you no longer have to pay the mortgage. Lower the Price! If you don't have any showings... Lower the price!That is the reality of the situation for both buyer's and seller's in the Sedona Real Estate Market! For all your buying and selling needs, contact me at 1-928-301-0669/www.barbarbaker.com Happy Buying... Happy Selling

Well. the Sedona Home Sale Market Place is slowly inching it's way back up. For the end of May - the Median sold price was $426,000. down by 16% from last year at this time, but up substantially from our record low point of this past January at $341,500 The number of our Pending is up by 135% - which tells me buyer's are coming back into the market place in droves - because of the low pricing and interest rates. the Vacant Land market has suffered tremendous wounds - down by 60% from the same time this past year with a median sold price of $121,000. The Good news is that we are seeing more solds and pendings in that marketplace - which tells me that investors and buyer's (the one's with cash or great credit) are getting some incredible deals out there. And like the Sedona Real Estate Residentail Marketplace... the Sedona Real Estate Condo market has gone up in it's pricing and in it's number of solds when compared to last years. It continues to be a great time to buy. Please call me at 800-975-5943 or email me at barbara@barbarabaker.com or visit me on the web at www.barbarabaker.com for all your buying and selling needs.

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what your monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.

Why Should I Rush to Buy?

While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing.

That being said, it would not be unreasonable for you to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.

Interest Rate Complacency

The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan.

But do not be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!

Markets are Unforgiving

The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money.

For anyone who was waiting for prices to drop even more, a 1.00% increase in your interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value.

If you're waiting for home prices to fall even lower, be aware that while holding out for a lower price may help you win the battle, you could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.

Clock is Ticking on Free Money

If you, or someone you know, is planning on purchasing a home this year, be aware that you must take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace. And since over 50% of all buyers are first-timers in today's market, this could impact a lot of people who aren't in the know.

For all your buying and selling needs please contact me via email at barbara@barbarabaker.com or on twitter, or on facebook or on the web at www.barbarabaker.com or by the old fashioned way - phone - 800-975-5943

Sedona AZ Real Estate has had and continues to have its' share of Foreclosures and Short Sales undervalue our marketplace. Since the 1st of January 40% of our sold homes are either a foreclosure or a short sale. AND of our homes currently under contract - 55% of those are Foreclosures and Shorts. What is even more interesting is in the Sedona AZ Real Estate Homes for sale- of the 450 currently active - only 20% are either a foreclosed home or a short sale. That tell's me that the Consumer is targeting those properties. We are starting to see even bigger discounts in the Foreclosure and Short Sale pricing - as lenders are trying to dump these off their books at a greater speed - and seller's in a short sale position are dropping their prices to entice a buyer to hang in therer for the long, ardous process of dealing with a short sale. With low interest rates, consumer confidence starting to return, high seller motivation, it continues to be a great time to buy. For all your buying and selling needs - I can be reached at www.barbarabaker.com barbara@barbarabaker.com 800-975-5943 or on twitter, Facebook or LinkedIn.

Statistically, we hit bottom on January of 09 with a price point of $341,500. Our solds are now averaging around $430,000. And we have more pending sales now, then we had at our all time high of May 05. 1/2 of those homes currently under contract are either a foreclosure or a short sale - which will continue to drive out market downward. Of course alot of the homes currently Buyer's are taking advantage of our low prices, great interest rates, and realizing that this is the time to BUY! Also, with the stock market slowly going back up, consumer confidence is on the rise both nationally and internationally. It would be a very good idea to jump into our marketplace at this time. For all your buying and selling needs please email me at barbara@barbarabaker.com or cell at 800-975-5943. Happy Buying- Happy Selling