What's happening to home prices in Sedona? Are they correcting?

I just received an e-mail from a gentleman with this brief but rather broad question that's on the minds of many who have been considering Sedona for relocation, retirement or investment: Is the Sedona Market Correcting? 

 The short (and broad) answer is: YES.

Here's the rest of the picture: 

  Sedona greets you with fabulous red rock vistas, like this one of Bell Rock.

Prices have softened considerably all over Sedona and the Verde Valley area and have fallen quite a bit from the dizzying heights reached at the peak of the buying frenzy. Prices are still going down due to higher than normal levels of inventory and higher than normal levels of distressed properties (short sales and foreclosures) across a broad range of price points. The rate of decline has slowed somewhat since the beginning of the year, from an average of roughly 2 percent in January to about 1 1/2 percent in June. It will be interesting to see what the fall market brings, typically a busy period in Sedona and the surrounding Verde Valley communities of Cottonwood, Cornville, Camp Verde, Lake Montezuma and Rimrock. We are seeing inquiries and showings start to pick up.

There are types of property and neighborhoods where this downward market trend is more evident than others. In general, land is very soft (residential lots experienced the highest appreciation of any property type during the boom years and sales in this sector are somewhat stagnant) and certain communities and price ranges where there was heavy investing have been hit harder, partly by the higher than average volume of sales during the boom period and partly by higher than average levels of default as investors who hadn't planned on the possibility of market fluctuations found themselves unable to 'flip' or in some cases even rent homes. All of these factors have impacted Sedona market statistics. and will continue to for some time.

For trends in specific neighborhoods or property types, please give me a call. Demand is higher in certain cases and homes that fit those buyers needs are selling more quickly.

If you're looking to buy, I think your best window of opportunity will probably come over the next 6-10 months.  Prices for entry-level homes have opened the doors to many who where shut out by the previous market, and those buyers who have been waiting to buy that perfect 'dream' retirement or vacation home would be well advised to snap it up when they come across it. Investors who are looking to hold for long-term investment should also take a closer look. There are some juicy bargains!

It's a good time to be a buyer in Sedona, the best we've seen in many years. I understand that interest rates just edged down again as well. It's hard to say how long that will be the case.

If you're looking to sell, the fact is that the competition is tough and you must compete aggressively on price and condition as buyers have much to choose from. If you don't have to sell, I would suggest waiting.

If you do need to sell, be prepared to be realistic, look at the facts and rely on your Realtor's® advice regarding pricing in particular. We want you to make top dollar for your home, but overpricing in a market such as this one results in substantially longer market times - and can spell disaster for your bottom line.

As in all things "where there is a will, there is a way", and being properly informed is the start. Contact me for the latest Sedona Market Statistics and Verde Valley Market Statistics.

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