Sedona Real Estate Market Conditions — 2/2012

by Las Sendas Homes on February 25, 2012

The results are in on the 2011 SEDONA REAL ESTATE market and the news is encouraging. Real estate sales for the year again surpassed those of 2006. The Median record Sales price of single family homes hit its bottom since 2003 at Mid-Year ($330,000) and afterwards rebounded to $350k by year’s end. The impact of foreclosures slipped considerably with REO sales down 24% and REO inventory down about 50%. We still have a good distance to go so as to get past the foreclosure crisis completely, but this is progress, especially with the banks’ new resolve to keep short-sales from going into foreclosure.

As for the new year, 2012 is starting out with a bang. With continued optimistic signs for the nation’s economy, consumers are flooding the market with renewed confidence at a time that is normally our slow season. January sales were the highest since 2005. Current Outstanding sales ( homes under contract ) are powerful and their price point is considerably higher than we’ve seen in quite a bit. Inventory, from the other standpoint, has dropped almost to 2006 levels.

My prediction is that we will see considerable buttressing of the real estate market nationally and locally throughout the spring season – especially if unemployment drops continue and the market breaks through the 13,000 mark.

Costs are still relatively low, but eventually the Law of Demand and Supply will start to make itself evident. I suspect it will be sooner. Demand is gaining momentum as inventory is running low. In the meantime, the price suppressing REO lucky card is having less of an impact. We’ll see costs heading up this year, for a change.

Good news for property sellers and the economy generally. If you’re a purchaser, staying on the sidelines too long however, could get more costly.

We will be sending out a follow-up newsletter next, so keep an eye open for that.

For more info, go to Sedona AZ real estate.

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