2009 Market Summary and Observations
To Sum it Up: Foreclosures and short sales were the dominant player in the real estate market in 2009. Like I need to be telling anyone that!
2009 is over and provided us with the most unstable real estate market in recent memory. Foreclosures and short sales made up 529 of the 1038 residential sales in the Verde Valley in 2009, driving prices down in all areas of the market. The median sales price in the Sedona area is off 32.5 % from the peak in 2006, and is down 17.4% in the last 12 months.
The bright spot in the market is that we saw an increase in the number of transaction in all areas, up 40 to 50 % across the Verde Valley. This increase in transactions is necessary to keep the foreclosed inventory from accumulating and driving prices down even further.
Inventory has been reduced over the last six month. This reduction is offset by the steady stream of foreclosed inventory coming on the market.
There was a slowdown in the number of Notice of Trustees Sales in the last quarter of 2009. There has been “noise” in the media that there is still flood of foreclosures to come. If that is true we will continue to see the same sort of market in 2010 that we had in 2009. The question that remains to be answered is will we see a further erosion of pricing in 2010 or will we see a bottoming to the pricing structure.
The over $1,000,000 price range remains very soft when compared to the peak years of 2005 and 2006 and is more likely to remain like this until the market finds some strength.
BOTTOM LINE: 2010 will be more of the same for most if not all of the year. There are great opportunities for buyers in the market, and low interest rates help make them even better. Call me if you or anyone you know wants to take advantage of this market!
For the full 23 Page Sedona and Verde Valley 2009 report in easy to read and understand graphs click here: 2009 Sedona Real Estate Statistics.
For more information on Sedona and the Verde Valley real estate statistics simply fill out and submit the contact form below or as always just call me on my cell phone at 928-300-7141. I respect your privacy, any and all information provided is strictly confidential. I will not sell or share your personal information with any third party.