Johns Newsletter July 2009

Sedona home sales grow four months in a row from March to June 2009

The number of existing home sales rose for four months in a row ending in June 2009. Sales have been driven up by retirees and second home buyers taking advantage of deeply discounted homes. These homes were priced so well that we saw multiple offers and continue to do so.  Of the 152 homes that sold March through June, 32% were foreclosures or short sales, the others were homes priced well, to sell, in this exciting market.

AVERAGE PRICE.
The average price which had been dropping all along, started to climb. It rose from $397,000 in March to $466,000 in June.  Even though prices are on the rise, they're still  25 to 35%  below their high in 2006 and in some instances even lower. Click to see latest Sedona Homes Sold List, discounts have been as high as 60% below original asking price.

PENDING SALES
The number of pending sales (pending sales are contracts that are waiting to close) is gowing at a rapid pace. As of July 23 there were 88 pending sales.  Many  of these contracts are for short sales which clog  up the process. On an  average, contracts close between 45 to 60 days from their initiation, short sales take anywhere from two to six months. Many have finally closed as seen by the increase in actual closing (sales).

INVENTORY GOING DOWNWARD.
More good news.  While sales are rising, inventory is shrinking. On june 30th we had 533 active listings, and an absorption rate of 11.8 months . (The Absorption Rate is a measure that's used to gauge the market). This means that it would take up to 11.8 months to clear up inventory.  Compare this with June 2008 where we had 661 active listings and an absorption rate of  22.7 months. The acceptable  Average Absorption Rate is 5 to 6 months, while the desired is what we had at the height of the Sedona market in 2006 -  3 months. The Good news is we're heading in the right direction.

By the activity we're currently seeing, we expect the third quarter to be even better, as more buyers who are in a position to buy, become aware of  this unbelievable Buyers' market  . 

SEDONA MARKET - 1st Quarter 2009 Vs 2nd Quarter 2009
When quarters are compared back to back, the 2nd quarter did outstanding. The number of homes sold increased by 89%, median price up 3% and days on the market down 7%. Average sold price and price per square foot decreased, but at a much slower pace. See table below.

	1st Qtr 2009		2nd Qtr 2009		% Change+/-
# of Homes Sold	64	.	121	.		89%
Average Sold Price	$491,446		$452,196			-8%
Average Sold Price Per SqFt	$205		$195			-5%
Median Price	$378,000		$389,000			3%
Average % of Sold Price to List Price	92		92
Average Market Time	266		247			-7%

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SEDONA MARKET - 2nd Quarter  2008 Vs 2nd Quarter 2009
                               Low prices bring back buyers.
 A  total of  121 homes sold in the 2nd quarter of 2009 versus 92 in the same quarter of 2008, an increase of 32%, while average sold price dropped 16% second quarter 2009 for a cummulative 35% drop  from our high in 2006. Buyers returned in  the 2nd quarter because prices finally became affordable.. (see table below).

Of the 121 homes  that sold in the 2nd Quarter 2009, the best price range was homes priced below $400,000, up 48%. This seems to be the price range most attractive to vacation home seekers, investors and retirees, while homes priced  $400,000 to $800,000 grew 30%.

Sales of  homes priced $1 million plus dropped 32% from 1st qtr as high jumbo rate made qualifying for financing much harder for this market. There are some fabulous deals waiting for those who have cash or can get financing.