As for the slow sales numbers so far in 2014, it almost seemed that buyers in the rest of the country were hunkering down in the Igloos of Madison County in January and February and finally started hacking their way out of the ice in March. That’s when the pace of buying activity, prices, and Pending Sales began to pick up in earnest. It’s clear that we’re now getting the expected spring market bump that will keep us on track for a steady, if undramatic, increase in sales and valuation – nothing like the flamboyance we saw in the first half of 2013. That’s a good thing.
Overall impressive improvement
Sellers expecting a bull market this year have a right to be disappointed in the anemic start of the year, but they can take solace in what could be viewed as a well-paced, non-volatile, and stable market. And, they should be happy with two more positive indicators. The Cumulative Days on Market for homes sold in the 1st Quarter of 2013 was 282 days. So far in 2014, it’s 179 days. The ratio of the selling price of those homes compared with the list price is also improving. In 2013 it was 96%. In 2014 it’s 97% – the highest it’s been since 2006. The take-away here for sellers is that well-priced homes do sell and sell for closer to the list price.
An excellent indicator of a healthy market is the dramatic decline in the inventory and sales numbers of foreclosed and short-sale properties. Last year 82% of the sales were made up of non-distressed homes. So far this year it’s 93%. As for the housing inventory, 5.5% were distressed properties in 2013. In 2014 it’s 1.6%. Pretty impressive improvement.Roy E. Grimm
Beyond Single Family Residences, the Vacant Land Market is perking along nicely at the same sales pace as last year, but with prices up about 8%. Among Condominium/Townhomes, always the contrarian sector, is similarly on 2013’s relatively fast pace with the MRSP up over 7% and the Cost per Square Foot up 12.5%.
Over all, we seem to have a fairly well balanced real estate market that appears poised for sustainable growth without getting out-of-whack.
Dr. Roy Grimm is a member of the Pennington-Grimm Team at Russ Lyon Sotheby’s International Realty, serving the Sedona and Flagstaff areas… For questions or comments email Roy at Roy@SedonaRealEstate.com or visit www.SedonaRealEstate.com for the full statistical details.
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