February 2013 Sedona Real Estate Market Update

We’re on the cusp of the busy season here in Sedona – and within a few weeks the lid will blow open and you’ll see activity ramp up for the spring buying season.  Typically, local sellers hold off on listing their homes during the slow winter months and go live with listings at the end of February or beginning of March.  Look for more well priced homes to hit the market and for many properties to sell quickly – as there’s some pent up demand for properties under $500k.

There are currently 376 residential units on the market in Sedona and a whopping 85 already in escrow with other buyers.  That’s a very high level of activity for a time of year that’s supposed to be the slowest of the year!  67% of the homes in escrow are priced under $500k – and inventory in this much sought-after category is at a 8 year low.  It’s a sellers market in this price range, so although we haven’t seen any price gains, look for this in the immediate future.  Current pricing on homes under $500k is hovering around $200 per square foot – so use this as a loose guide when searching for Sedona homes.  It’s also important to remember that you’ll easily pay more than the going average if you’re looking for a home in above average condition or with above average views.

The other trending story in the Sedona real estate market is the decline in overall numbers of distressed homes.  Both foreclosed and short sales are down by almost 50% over the last year – and with the number of short sales shrinking even quicker, my guess is that the foreclosures will be drying up soon as well.