Sedona Real Estate Shows Positive Signs
We have all read enough negative real estate news to choke a horse. The Sedona real estate horse is choking less and breathing better. 2009 will go down as the year we turned the corner in greater Sedona real estate, including VOC, Oak Creek Canyon and the Loop Rd Area. The following facts from our Board of Realtors are impressive: residential sales in 2009 where 41% ahead of 2008, vacant lot sales were 60% ahead of 2008, and the inventory of residential units for sale dropped from 600 January 1, 2009 to 480+/- on January 1, 2010.
The decrease in the amount of homes for sale is very significant to the health of Sedona real estate. 36% of sales in 2009 involved a foreclosure related sale. The wave of foreclosures predicted for early 2008 and 2009 never happened. We have had plenty of foreclosures, but they have been absorbed well throughout the year. 2010 will see somewhat less foreclosures than 2009.
The reckless lending (adjustable-rate loans) that caused a great deal of foreclosures was halted abruptly 2 years ago. Most remaining adjustable-rate loans are actually good. These loans in 2009 and 2010 are lowering payments for thousands of Americans. Interest rates on most adjustable loans are now reset at 2-3/4% to 3-3/4%. Nearly all real estate loans world wide are adjustable. The USA is the only country on earth with low interest fixed rate loans available to all citizens. These 5%+/- fixed loans are remarkable and will contribute to our recovery. Even if rates increase to 5½ -6½ % in the next 24 months, they will still be among our lowest rates in 50+ years.
Sedona does have one weak link. Million dollar plus homes in Sedona were the only segment of sales that decreased in 2009 (down 37% from 2008). Only 19 homes over one million sold in 2009. Of the 480 residential units for sale in greater Sedona, 90 are priced over 1 million dollars.
Having analyzed 39 years of full-time Arizona real estate (20 years in Sedona), we ask ourselves where do we think Sedona real estate is going in the future? That choking horse is going to gradually turn into a thoroughbred over the next three to five years. Saddle Up!
Dennis and Janie Tribble
