July 30, 2009 As Coldwell Banker-Mabery has been the real estate leader in MLS for many years, many have looked to us to help interpret what the market is telling us. In office, we discuss this continually and many of our agents have their own blogs in which they give their very informed ideas on what is happening in the real estate world. Not to be left out, I would like to bring information, trends, ideas and legislation to the attention of anyone who might be interested. And all as it pertains to the local Verde Valley-Sedona market. What is going on in the rest of the nation doesn't mean much if it doesn't match up with what is going on here and nearly every stat out there is different depending on where you are talking about. Let's get started.

Our associates are constantly assisting folks in determing the value of their home. Yes, the market has fallen. No, it never happened here before in anyone's memory. Yes, it will go back up. No, it won't be quick. And yes, it feels like the bottom is near. So how much have the values dropped in the Verde Valley? Every stat you pull will send you a different direction but the drop of value from the high in 2006 statistically is about 38%. And while the number of home sales have slowly, ever so slowly, been rising, the average value has not. Some areas of the Verde Valley vary somewhat from this 38%, but this average applies in many areas. The biggest influence on the decreased values and the increased sales is definitely the foreclosed homes being sold by the lender's asset managers. Foreclosures represent over 60% of the home sale market and the number could still rise. What does this mean to the average buyer or seller? Basically, you can buy really cheap but you have to sell cheap, too. Interest rates are in a historically low range, which is great. But if you purchased a home in 2006 for $300,000, you may have to take a loss of over $100,000 to sell. Some homes that sold for over $200,000 now are closer to $100,000-$115,000. Yes its brutal. But the opportunities are more plentiful than ever before. Check out the tax benefits, the low interest rates and the government assisted loan progams (no, the cash-for-clunkers does not apply in the real estate arena). All for now.