John Limotte Sedona Real Estate Agent

Proof that the Sedona real estate market is heading in the right direction, though moving slightly slower than some would like, is evident in much of the data coming out: pending sales were up in April, average price rose suggesting stability, foreclosures were down, and the luxury market continued on its up-swing. Nationally this seems to be true also. And this is all happening in spite of the fact that there is no tax incentive being offered by the Fed. Is this the time to buy? You bet it is! Bargain prices and low interest rates won't be here forever.

Average Sold Price of an Existing Sedona Home Rose
The average price increased for the second month in a row, rising from 387,278 in March to 423,578 in April. This represents a 9.3% gain from March.

Sedona Pendings
A snap shot of pendings shows sales going from 73 April 1st to 85 April 20th, suggesting strong sales for the month of May.

Sales of Existing Homes
Economists predict that sales of existing homes will rise in the fall rather than the spring as buyers need more time to be convinced that the economy as a whole has turned the corner. Of the 37 homes that sold in Sedona in April, 60% were priced below $400,000. Of the 37, six were bank owned homes. For more details, click Sedona Real Estate Statistic chart.


Sedona Luxury Market is doing Great
This market is on the rise. Two additional luxury homes sold in April for a total of nine and four are pending. Last year at this time only three had sold. Luxury Buyers can get a fabulous home as prices are well below what they were in 2006. In the past six months, the average price of a Sedona Luxury Home sold was $1,622,250, that's 38% less than the original asking price. For more information on the Sedona Luxury Market including price per SqFt , percent of sold price to original list price etc. click here Sedona Luxury Market.

Inventory Remains Steady
Inventory declined by 5 units going from 455 in March to 450 in April. In 2009 there were 609 active listings.

Inventory of Sedona Foreclosures and Short Sales (Pre-foreclosures) decline slightly
The number foreclosures and short sales coming on the market seem to be slowing down as only 50 distressed properties came on the market in April compared with 59 in March.

On the national level, there are fears that lenders will glut the market with foreclosures they have been amassing which will result in a further drop in home values. Then again, interest rates are expected to rise so that whatever additional savings there might be will be negated by an increase in rates. Additionally, experts expect home values to rise, though modestly over the following year (2012). According to NAR 31% of homes sold were paid for in cash.

Botto line, no one can really predict the future of this market; there are so many variables. As we all know, Real Estate is cyclical. Prices are low, rates are low, if you can afford to buy, then buy. This is an opportune time, don't miss out.

Call John 928-300-0849 or e-mail John@LimotteRealtor.com him with any questions you may have about the Sedona Real Estate Market.

To Search the entire Sedona MLS go to SedonaJohn.com.

John's NewsLetter April 2010 --- For all your Sedona Real Estate needs call us
Toll Free 866-340-6013, cell 928-300-0849 or e-mail us

SEDONA REAL ESTATE MARKET STATISTICS FOR 1st QUARTER 2010

SEDONA SALES OF EXISTING HOMES RISE
Sales of existing homes have increased steadily month over month for the past 4 months. Additionally, they increased dramatically the first quarter 2010 from same quarter in 2009: 120 vs 64, 87% more. Some of the reasons that fueled the increase in sales are:

• Prices have stabilized over the past several months. The average price for a home sold in the 4th quarter of 2009 was $183 per square foot vs $182 in the 1st quarter of 2010.
• The current sales prices are the lowest they have been since 2003/2004.
• The supply of residential homes have been reduced significantly, from 620 at the end of March 2009 to 497 at the end of March 2010.
• Buyers took advantage of the home buyer tax credit. The Home Buyer Tax Credit for both first time buyers and repeat home buyers is due to expire on April 30 (must have a fully executed contract by April 30, and close escrow by June 30).
• Lastly, low interest rates.

SEDONA FORECLOSURES. If you're interested in getting a foreclosure in Sedona, you should know that this is a highly competitive market and you must move quickly. There are usually multiple offers on the best homes; with buyers who are paying cash winning over those financing. REO's (Foreclosed Homes) sold for 25% less than traditional homes sold for. If you don't want the bank/seller to dismiss your offer outright, give your offer much thought. Look at local market trends and statistics, including recent sales as a way to justify the price you're offering. Don't miss an opportunity to get a great buy because you gave an unjustified low ball offer.

Here is a snap shot of the Sedona Foreclosure Market--- April 21, 2010: of the 491 active listings 28 are foreclosures ( 6%); of the 120 homes sold the 1st quarter 37 were foreclosures (31%) .

INVENTYORY AND ABSORPTION RATE DROP. The absorption rate is a measure by which the real estate market is judged. At 6 months, the real estate market is considered a balanced market. The rate has steadily gone down from a high of 45 months in January 2008 to 8.5 months currently. There are many buyers out there taking advantage of this great market, drawing down inventory and definitively stabilizing home values.

Don't miss out, the time to act is now! Call John or Carmen 928-300-0849 or email us if you have any question on Sedona Real Estate.

John and Carmen are Foreclosure and Short Sale Specialists cerfitifed by the NAR (National Association of Realtors).

Sedona Real Estate Market Report -The Sedona Market is Hot!
Third Quarter 2009
The defining measure of this market is not that prices are down. We know that they've been coming down for the past few years, but that the landslide has stopped and homes are selling. Hurray! Sales of residential homes in 2009 grew for the third quarter in a row, already surpassing the total number of homes sold in all of 2008: 299 compared to 309. The amazing combination of low interest rates and low priced homes cannot be beat.

Foreclosures and Short Sales

Of the 126 Homes Sold, 21% were foreclosures and 10.4% were short sales. While some Buyers looking to stretch their dollars found their dream home in a foreclosure or short sale, many others didn't. Instead they found many of these foreclosures to be in serious disrepair and not worth even the supposedly low price the banks were asking. Short Sales on the other hand presented a different problem, one of timing. Buyers are refusing to put their lives on hold for months waiting on the banks to give them an answer on their offer. With a little luck, patience and knowledge of the market, however, bargains can be found, just don't limit your search to just distressed properties, consider traditional sales as well.

Homes Sold

The number of homes sold continues to increase as Sellers price their homes competitively: 126 homes sold in the 3^rd quarter of 2009, up 4.1% from the 2^nd; and up 50% from the 1st quarter 2009. Homes priced below $399,000 sold the most, followed by those priced $400,000 to $600,000, while those priced $800,000 to $999,000 saw no change. Two markets decreased: homes priced $600,000 to $799,000 decreased 31% and the Sedona Luxury Market, homes above $1,000,000, decreased by 8%.

Average Price Per Square Foot Shows Stability

The average price per square foot went from $195 2^nd Quarter 2009 to $194 the 3^rd quarter 2009, a decline of 1%. You should know that the low- end market, homes that sold below $250,000, have been selling the most and consequently driving prices down. This will change as inventory of homes in this price range has shrunk considerably. Price per sqft in all other price ranges rose modestly in the 3rd quarter.

Inventory Continues to Shrink

The inventory of homes for sale in Sedona has been a key factor in the local market for the past several years. Inventory levels are generally a good indication of where home prices are going. As of September of 2009 that level dropped to a 12 month supply, down from a 37 month supply in January of 2009. Are we going to see prices soar any time soon due to the drop in month supply? We doubted, but we'll probably see interest rates go up. This may be one reason why you would want to buy now. Low prices with low interest rates, present a great opportunity for vacation home buyers and retirees looking to settle in Sedona.

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One of the many questions buyers ask is "Has this market bottomed out?" In order to answer this question, prices per square foot must either remain the same or go up for at least 6 months straight. Based on the average price per square foot of homes that sold in the last 6 months, it sure looks like the Sedona market has hit bottom.

Sedona home sales grow four months in a row from March to June 2009

The number of existing home sales rose for four months in a row ending in June 2009. Sales have been driven up by retirees and second home buyers taking advantage of deeply discounted homes. These homes were priced so well that we saw multiple offers and continue to do so. Of the 152 homes that sold March through June, 32% were foreclosures or short sales, the others were homes priced well, to sell, in this exciting market.

AVERAGE PRICE.
The average price which had been dropping all along, started to climb. It rose from $397,000 in March to $466,000 in June. Even though prices are on the rise, they're still 25 to 35% below their high in 2006 and in some instances even lower. Click to see latest Sedona Homes Sold List, discounts have been as high as 60% below original asking price.

PENDING SALES
The number of pending sales (pending sales are contracts that are waiting to close) is gowing at a rapid pace. As of July 23 there were 88 pending sales. Many of these contracts are for short sales which clog up the process. On an average, contracts close between 45 to 60 days from their initiation, short sales take anywhere from two to six months. Many have finally closed as seen by the increase in actual closing (sales).

INVENTORY GOING DOWNWARD.
More good news. While sales are rising, inventory is shrinking. On june 30th we had 533 active listings, and an absorption rate of 11.8 months . (The Absorption Rate is a measure that's used to gauge the market). This means that it would take up to 11.8 months to clear up inventory. Compare this with June 2008 where we had 661 active listings and an absorption rate of 22.7 months. The acceptable Average Absorption Rate is 5 to 6 months, while the desired is what we had at the height of the Sedona market in 2006 - 3 months. The Good news is we're heading in the right direction.

By the activity we're currently seeing, we expect the third quarter to be even better, as more buyers who are in a position to buy, become aware of this unbelievable Buyers' market .

SEDONA MARKET - 1st Quarter 2009 Vs 2nd Quarter 2009
When quarters are compared back to back, the 2nd quarter did outstanding. The number of homes sold increased by 89%, median price up 3% and days on the market down 7%. Average sold price and price per square foot decreased, but at a much slower pace. See table below.