2008 Second Quarter Update

The real estate market in Sedona and the Verde Valley continues to limp along at a snails pace, though sales activity in the area has definitely increased over the first two quarters of 2008:  But, we are still a long ways away from having healthy market activity.   First, sales volume in our area has not been this anemic since prior to 1996.  Unfortunately, I can’t go back in the records to tell you when was the last time we saw so few sales in our area,  because our local MLS only became computerized in 1996!  Here are the actual numbers from sales in the area over the last 12 years.

Year     # of Sales        Dollar Volume

1996     1687              197,283,896
1997     1809              248,524,298
1998     1967              282,799,572
1999     2052              325,126,110
2000     2127              388,386,493
2001     2043              378,680,420
2002     2244              440,312,261
2003     2624              593,724,521
2004     3175              782,270,183
2005     3121              968,669,048
2006     1972              740,066,355
2007     1261              458,545,123
2008      612               202,789,660       *YTD, 8/24/08

We will likely close this year with fewer sales than were recorded last year.  These numbers include all the communities in the Verde Valley:   Camp Verde, Clarkdale, Cottonwood, Cornville, Jerome, Lake Montezuma, Rimrock, Sedona and the Village of Oak Creek.  Out of the 612 sales recorded so far this year, 496 of them were homes, 94 were land, the remainder being  commercial or multifamily properties.
Currently there are 3074 active listings in the Verde Valley, – and 157 properties currently under a sales  contract.  In other words, little more than 5% of area offerings are under contract. This will be the worst year on record in terms of number of sales.
Foreclosures and short sales now comprise 5% of the listing  inventory that is currently available throughout the Verde Valley, and that number is growing weekly.  24 new foreclosures and short sales were listed last week alone.
Some of the prices offered are AMAZING.  How about a site built home in Sedona for $117 dollars per square foot?  Or maybe a 1980’s site built house in Camp Verde for  39,000?  How about a 2100 sq ft Santa Fe Style house with granite counters and tile floors in Rimrock for 185K??  Yep,  these are all genuine foreclosure and distress sales recently recorded in the Verde Valley– and local sellers who are in distress must compete against them.
Land foreclosures are just beginning to appear throughout the area– and the deals on these will be phenomenal.  Why?  Very few banks are making land loans– so these foreclosures must be purchased with cash.  Prices will be dramatically below market in order to attract a cash buyer.

We now have a place on our website where our clients can search ALL the foreclosures and short sales throughout the Verde Valley.  We will update this information DAILY.

I have printed this before, but I thought it worth printing again.  This is a breakdown of quarterly sales for the past few years.

1st quarter  2005            727 closed sales
2nd quarter 2005            966 closed sales
3rd quarter  2005            786 closed sales
4th quarter  2005            591 closed sales
1st quarter  2006            567 closed sales
2nd quarter 2006            570 closed sales
3rd quarter  2006            561 closed sales
4th quarter  2006            358 closed sales
1st quarter  2007            314 closed sales
2nd quarter 2007            406 closed sales
3rd quarter  2007            304 closed sales
4th quarter  2007            234 closed sales
1st quarter  2008            203 closed sales
2nd quarter 2008            280 closed sales
3rd quarter  2008            125 closed sales  *YTD 8/24/08

So what does all this mean to you?  If you are a seller, have patience and know that there are a lot of other people in the same boat as you.  How much patience?  2.5 years worth unless your property is among the VERY best deals on the market.

Buyers–  Get it while the getting’ is sooooo good!

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