E-Newsletter - June 2007

National and Sedona Housing Trends

The Housing Market continues to sputter along nationally with a mixture of good news and bad news almost on a daily basis. The most potentially significant news comes in the credit industry where shakedowns have led too much tighter credit requirements for home loans. That means people with marginal credit histories now are failing to qualify for a loan they could have easily have gotten last year. Plus interest rates have begun a steady creep towards 7% and I fear that may be somewhat of a psychological barrier for some buyers, even though by historic standards that rate would still be a bargain. It’s amazing how quickly some people can become spoiled. So with those factors occurring the housing market remains somewhat cool, but not dangerously so, on a nationwide level.

Here in Sedona the situation remains much like what it has been for the last nine months but with a little more optimistic trends. The problem of course is that while the market is improving it had fallen to levels not seen for at least five years. It will take a long time to climb back up I’m afraid but I feel the climb back has begun. The unfortunate reality though it that the buyers are not here with the same force they once were and that is a reality that all sellers will need to deal with. It is possible that we are seeing buyers holding out for further price reductions and that this may actually back fire on them as a wave of pent up buyer demand strikes quickly and inventories shrink suddenly. While I think that is a possibility I would not make a trip to Vegas to make that bet. More than likely we will continue to sputter along with a few good months mixed in between a few slow months and that trend could continue through the next election process. Anyone who has been a professional Realtor for over ten years will tell you that election years can mean a soft Real Estate market and with 2008 shaping up as a typical last man (or woman) standing election year some buyers may put their futures on hold looking for a reason to be optimistic.

So in summary if you are buying Real Estate in Sedona, now may be the best chance you will ever have to purchase in this area. If you are selling and need to sell now, I wish the news were better but on the bright side, there are buyers out there and homes price right are selling and some are selling fairly quickly. And the real silver lining is that Real Estate remains an appreciating asset and you can bet that Sedona Arizona will offer the same a lour to future buyers as it did to you when you first moved here.

Tod Christensen
Designated Broker/Vice President
Coldwell Banker First Affiliate