"Glimmer of Hope" - is it real?
During the last four years, realtors all across the country were looking at the statistics every month to try and point to a recovery or at least a glimmer of hope that a recovery would be coming soon. In the last few months there is good news, that glimmer of hope is pointing to a solid recovery all across the nation. Also, it certainly does not hurt that the stock market is at record levels! (As I write this the market closed at 14,447- a record high.) WOW! Besides all of that, the stock market fear gage is at it's lowest level in 4 years!
What the stats say...
The National Association of Home Builders/First American Improving Markets Index reports that U.S housing markets are showing expanded improvement for the sixth month in a row in February.
In September of 2011, there were only 12 improving metro markets. Just over 70% of the 361 metros across the nation are now showing improvement. In fact the NAHB is reporting at least one metro area in all 50 states is improving, showing that the housing market has momentum and is expanding. This is real and sustainable improvement.
Are market conditions similar in the Sedona AZ real estate market ?
The Sedona homes for sale statistics, point to that same momentum.
<---- Number of active listings is declining...
...while listing prices are climbing. ----> 
The absorption rate has moved from 8.29 in Feb-12 to 5.55 in Feb-13.
The absorption rate shows how long the current inventory of Sedona properties would last at the current rate of sales. So you can see that number is falling. Listing are selling at a rate of almost 3 months sooner than a year ago. This is great news for sellers.
Are we moving from a buyer's market to a seller's market? You be the judge! The average sale price of a home in the SVVAR (Sedona Verde Valley Assoc. of Realtors) is $239 K in Feb-13 which is a 10.77% jump from Feb-12.
Is the market in flux?
We have to remember that there may be many potential sellers still sitting on the sidelines waiting to get into the game. How many want to put there Sedona home up for sale? If these potential sellers jump into the market, the number of Sedona real estate listings available will multiply and absorption rates may increase which could lead to a shift in advantage to the buyers once again. This is why I say the market is in flux.
What about Sedona luxury homes for sale?
For the purpose of this statistical analysis, we will define the luxury home market at $500,000 and above. The Sedona Luxury Real Estate Professionals define the price as $750,000 and up. I am a member of SLREP and on the executive board.
What really matters is the number of sold and pending listings. In Feb-13, 11 listings sold compared to 8 last year - a 38% increase. YTD - the listings jump to a 47% increase year to year. On the Pending Listings - the percentages are staggering. There is a 70% increase from Feb-12 to Feb-13 and YTD the percentage jumps to 85% year to year!
All in all, it is an exciting time for everyone involved in the real estate market. Sedona real estate buyers can still get some good deals out there but they are dwindling to the delight of the seller. Real estate professionals are busy then ever fulfilling the needs of their buyers and sellers.
I have reprinted this blog entry from my personal blog at www.sedonaproperty.blogspot.com dated Tuesday March 12, 2013.
If you are in the market to buy or sell Sedona real estate or Verde Valley property,
please call Sheri Sperry @ (928) 274-7355 or visit her website @ www.eSedona.biz .
Enjoy Spring!
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