Looking Back Into the Rear View Mirror!
Peering back into 2016, I had my best ever year in the Sedona real estate market. I was busy all year from the very beginning of January. There were a couple of different months where I had five contracts open at once! One thing that alarmed and frustrated me. I had clients who were ready to go but there was nothing available to show my clients. Little did I know that this theme would carry over into every month for 2016. When something came on market, myself and my clients had to jump on it.
Forecasting The Future For the Sedona Real Estate Market In 2017
To forecast the future of real estate you might need all the help you can get. As the image above depicts; meditation, working with sound therapy, Chakra tune-ups, saging your space and using that crystal ball may be the only sure fire way to predict the future.....yeah....right!
It may seem like I am reading the tea leaves when forecasting the future, but there are the signs that give me insight to market conditions moving into the future. We know what happened in the past and with the indicators such as our inventory, days on market, median pricing and other factors such as Market Action Index help identify the direction of the future.
I am bullish on America, our economy and the future of real estate for 2017. I think the stock market is going to continue to rise and reach higher than the 20,000 mark. Smart relaxation of regulations is going to have a positive affect on the business climate and hiring. New businesses will start and have a better chance at success. It is growth across all sectors of business that will fuel the rising real estate market.
Realtor.com states that "Millennials (33%) and boomers (30%) will dominate the market." Realtor.com also states that "strong local economies and population growth will continue to fuel the nation's hottest markets." Phoenix - Mesa - Scottsdale AZ tops the list at number one housing market based on price and sales gains for 2017. Tucson AZ came in number nine.
The reason I bring the Realtor.com forecast facts up is two fold.
- Baby Boomers fuel the Sedona market
- Hot markets in the southern part of Arizona (Phoenix & Tucson) also bring buyers up to Sedona
Second Homes & Low Inventory
There are two themes that I think will continue moving forward in 2017.
1.) The second home market is very big in Sedona. All the current homes that I have listings on including a future listing coming to market soon are all empty homes. The buyers of these homes will more than likely be preparing for retirement, retired, or are looking for a vacation home to come to for the weather and beauty of the area. Fifty percent of my buyers are cash. They are selling other homes or cashing out of the market to buy the home of their retirement dreams.
2.) Inventory will continue to be less than we have seen in years past. Days On Market (DOM) will continue to be higher than other parts of the United States. Homes well priced will move fast and other homes will sit and drive the DOM up higher.
Comparing January 2016 to December 2016,
January 2016 December 2016
Median Price.............................. $725,000.............................$780,000.............up $55,000
DOM..............................................220......................................262....................up 42 days
Inventory......................................163.......................................134..............down 29 homes
Insulated & Discretionary
Sedona is slightly insulated from changes in the overall market conditions. It is more of a discretionary market. Buyers do not rely on mortage rates as much as traditional markets. In the same tone, sellers don't have to sell and can hold onto their property longer.
A Cautionary Tale...
Buyers need to understand that they must be ready to role. They have to have their financing in order to assure an acceptance on an offer. Otherwise, some other buyer will scoop the home they want right out from under them. I have a couple of buyers who are chasing the market right now.
As for sellers, the same holds true for them. Other homes come on market and get snatched up because the price is right. Thier home goes stale because they are not willing to adjust the price to what the market will bare.
This Is Not 2005!
In 2005, you might be able to wait and get what you want. In today's market and future Sedona markets, the seller needs to know that the home has to be priced to sell. ....not priced to sit
Sedona & Verde Valley market reports and events and are brought to you as a courtesy of Sheri Sperry ReMax Sedona REALTOR®. If you are a contemplating selling your home, a prospective buyer or just curious about real estate in Sedona I would be honored to discuss our market. You can contact me at (928) 274-7355 or email me at Sheri@SellSedona.com. From the moment I am contacted, you will observe my seasoned ability to provide you with "World Class Service" and that "personal touch" while utilizing a complete package of technology options that are of the utmost importance and so critical in today's market. I will tailor REAL solutions to fit your specific needs.