We're on the tail end of Monsoon season here in Sedona - which means that our typically slow summer season is almost finished. Real estate sales sagged a little compared to Spring 2013 months, but it was busier than normal - with 54 sales in the month of July (50 in 2012). The overall number of Sedona sales are about 4% up over last year - but volume is up by nearly 10% - which probably has several causes: 1) minor price increases in the lower end of the market 2) higher level of activity in our Sedona luxury homes market.
Current availability of homes is at a 7 year low - with only 375 homes on the market (72 are currently in escrow with another buyer -so the true available homes are 303). If we rule out condos/townhomes/MFG homes, then there are only 250 available homes in the entire Sedona area. No wonder prices are starting to come up incrementally. I wouldn't expect to see appreciation levels like you'll see in Phoenix, Vegas, San Francisco - but look for single digit improvement starting in the lowest price ranges and working their way up (as long as inventory stays low and interest rates don't spike).
We've seen rate increases across the board for lending - so if you're looking to borrow money to purchase a house, the rates I've seen quoted this week were in the mid 4% range. Trends and rumors seem to point to higher rates in the future - and I've mentioned this before, but not everybody believes me... a 1% increase in the interest rate means that you can afford 10% less of a house. So, if you're looking at a $400k house and the rate jumps a point when you're searching - then you'll be looking at a $360k house to get the same payment promised earlier.
Our strong fall market kicks into high gear in a few weeks - so expect to see more listings come available and even more buyers snapping them up at a quick rate!