| |
Just about every real estate agent in Sedona is asking the same question: Is the worst of it over?
Because so many factors impact the answer, it’s not easy to tell. Some indicators are starting to say “Yes” (buyers seem to be returning in encouraging numbers), but on the other hand, the supply of unsold residences (and lots) has risen to an all-time high.
The bottom line is, nobody really knows. One prediction I can make with reasonable certainty is that it will be a Buyer’s Market for the rest of 2008.
Will prices continue to trend lower? Probably yes, but don’t count on anything more than a further 10% decline by year’s end. After that, I’m guessing it will take another twelve to eighteen months to get inventory levels down to a normal level. During that time the best deals in town will quickly disappear, raising the next obvious question: Is now the time to buy?
|
|
It could be . . and at today’s already reduced prices, what is there to lose by at least looking around? Not only is there the possibility you might discover your dream home in Sedona’s bloated inventory, you might also find it available at a price you never expected would be so low.
Real estate fundamentals in Sedona are different from what is going on in the rest of the country. Yes, we have a large inventory of residences, but compared to places like south Florida, Las Vegas or Phoenix, it is a drop in the bucket. Remember, Sedona is an “island” surrounded by national wilderness. There is only a limited supply of land available for private development. At the rate it is currently being bought up and used, it could very well be depleted by 2020.
|
|
At the moment demand is relatively low, which is good news for today’s Baby Boomers currently putting together their retirement plans. However, I would caution them not to postpone their purchases for too long. Counting on residential prices to decline even further is an iffy gamble. A burst of pent-up demand in 2009 could easily unleash a new upswing in prices, leaving procrastinators with not only less bargaining power, but also a shrinking inventory to choose from.
All things considered, this is an opportune time for serious buyers to carefully examine what is happening with both homes and land. The majority of the residential inventory is in the $350K to $650K range, with more houses continuing to slip down into that bracket, creating a rare buying opportunity.
|
|
As for the rest of the Verde Valley, bear in mind that neighboring communities within commuting distance of Sedona are also offering outstanding values, some as low as half the price of a comparable Sedona property. As you can readily see, there is a lot to consider. Ten years from now we will probably look back and realize that 2008-2009 was the choicest time for purchasing red rock real estate.
If I can be of help to you in any way, please don’t hesitate to call me or
E-mail
me. I would love to talk to you.
|
|
