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Some pundits are saying the housing market is bottoming out at this very moment. They point to what is happening in California, our neighboring state, where July sales boomed 9.7%, the second largest
increase ever recorded.
I recommend you don’t get too excited. What caused that unexpected bounce was the fact that at least 40% of the sales were due to foreclosure activity. Non-bank related sales actually hit a new low in July. What it really
means is the banks are inheriting properties faster than they can dispose of them, and allowing investors to gobble them up at fire-sale prices.
With a supply of 11.2 months of real estate overhanging the market, you can expect these bargain-hunting opportunities, as I have been saying right along, to continue at least until the end of the year. If purchasing a
foreclosure is something you might be willing to consider, I suggest you check out my FORECLOSURES page and learn how the process works.
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By the way, one important trend you might wish to take note of is there has been a noticeable surge in the availability of condos, not only nationally, but here in Sedona as well. This should put
increased pressure on condo prices, leading to more negotiated price concessions. So if a condo happens to be your residence of choice, now might be just the right time to start looking at what Sedona has to offer you.
Meanwhile, home prices continue to deflate, albeit more slowly. The overall decline in July prices was milder than expected, reinforcing my belief that there is a chance for a possible bottoming out by year’s end.
Still, there remain more Sellers out there than Buyers, which means now is a good time to negotiate a rock-bottom price. |
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No one doubts we are experiencing a major housing downturn, with serious economic consequences that are still unfolding. The odds are the reverberations will lead to reduced growth, certainly for
awhile. Nonetheless, housing led us into this financial mess and it will eventually lead us out, painful as it may be.
Through all of this, Sedona is fortunate in being less negatively affected than most other parts of the country. Yes, we have many of the same symptoms, but their severity is mitigated by the unmatched uniqueness of
where we are located --- amid beautiful red rock formations that are unduplicated anywhere else --- and the unmatched demand of people being drawn here by a sense of spiritual awe and a desire to be surrounded by it. |
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If Sedona is indeed for you, now might be the ideal time to stake your claim for a piece of its serenity.
Don’t hesitate to call me or E-mail me. I would love to talk to you.
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