Wednesday, October 21, 2009

Very interesting numbers have been put together by Paula Daley in our office. Below you will see some very telling numbers as to the state of our real estate market. Using 2006 as our benchmark (the height of the market) the total number of home sales for the same time period in 09 has dropped some 31% in the Sedona Verde Valley MLS. The median home prices have dropped even more as some areas have plummeted as much as 37%. The largest concentration of the sales have settled in at under $200,000 (71%) for the Verde Valley (excludes Sedona and VOC) compared to 23% in 2006.

The vacant land numbers are so dismal I'm not sure how to put percentages to them as far as values. Very little, and I do mean little, is moving for lots or acreage.

It appears that this trend will continue until 1) the foreclosures begin to dry up, 2) employment goes up and 3) the value of the homes being sold begins to equal the cost to replace them. And, obviously, all three of these conditions are intertwined with each other.

Bottom line: this is a wonderful time to buy.