The long dreaded "Double Dip" has The mcome and appears to be gone. The Median Recorded Sales price of Single Family Homes in the Sedona area slid to $330,000 by June of this year - even though buyer demand and sales figures were strong. That figure quickly moved up to $350,000. And, that's where it stayed through December.
After a relatively slow fall, activity was strong in December. That activity will show up in January and February, so I expect a more lively start of the new year than usual. With that as a springboard, look for 2012 to be an exception year for the real estate market.
The interesting phenomenon has been a significant decline in the number of REO's (foreclosures) on the market. Demand is very high for them, so we've seem multiple offers for nearly every new REO listing. Consequently the final selling prices have been well above list price. $100,000 in one case. It remains to be seen if this trend will continue or if it will encourage the banks to dump more of their REO inventory on the market.
So, I believe that we're seeing a significant shift in the market. Foreclosures will keep the lid on prices for a while, but clearly the Sedona real estate market has turned the corner.
Email me at Roy@SedonaRealEstate.com for a full statistical report in historical perspective.
The fundamentals of the market in Sedona, however, are markedly different from those across the country and even across the county. Yes, we have a relatively large inventory of available homes (happily for our buyers) - probably a year's backlog or so. But, that's minuscule compared with, say, Phoenix. The big difference is that, hemmed in by National Forest, there is no more raw land left for new development except very small isolated pockets. The finite supply that is left WILL be completely gone in a decade - probably far less.
As for demand, Sedona still is a magnet for retiring Boomers and that will accelerate even in the short run. Those buyers have largely been postponing their purchases here, trying to time the market, but that latent demand is building and will burst forth sooner rather than later.
In the long term, prices will rise dramatically and this is the time to take advantage of the lull before the storm. I see buyers who have been waiting on the sidelines for the past two or three years are starting make their move and swoop in to pick up bargains while they can.
This opens an excellent window of opportunity for buyers. Now is the time to come a strike a good deal.
Sedona is an island of private land surrounded by National Forest and 98% of that private land has already been built on. This indicates that Sedona is right on the verge of a dramatic price run-up as the Baby Boom demographic continues to hit town in full force over the next decade or two.
For up to the minute market conditions and more personal insights call us at (800) 282-2959.
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We're on Your side.
Roy Grimm, Assoc.Broker Buyer Brokers Group - Russ Lyon Sotheby's International Realty.
ZIP Code: 86336-86351 Location Characteristics: Cited as, "THE MOST BEAUTIFUL PLACE IN AMERICA" by USA Today' Weekend Edition, Sedona is world famous for its magnificent scenic beauty and mild, four-season climate. It is a small town with world-class resort amenities.
About Roy E. Grimm, Ph.D., Buyers Broker:
A former educator in another life, I am the head of The Buyer's Broker Group of Russ Lyon Sotheby's Interantional Realty. We serve buyers exclusively. That means we don't list property but we have access to everything on the market. We don't sell real estate, we help people buy it intelligently. We give our loyalty to our buyer clients so that they never need to guess whose side we're on. And, since we get our commission from the proceeds of the sale, we do not charge our clients a fee for our services. Let us save you, time money, and peace of mind. We're on Your side. Thanks, Roy Grimm
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
