Sedona Real Estate: Foreclosures Situation

Posted on June 29th, 2009 by saman

With prices as low as ground level, and an impressive record of rates, 5% being the lowest in decades, and upcoming plane of Congress to set aside a handsome $50-$100 billion for the benefit of homeowners, we’re really talking about the Sedona market, what’s up in 2009:

Houses to homes: With a 14% decline, in 2008 a total of 302 homes were sold in Sedona as compared with the 350 sold in 2007. It was a market slip no doubt, but the slip was at a rate lower than what we were used to seeing from the beginning of the fall, and also it was a rate lower than in other markets in Arizona.

With the Inventory moving slightly lower, it suggested stability. In December 2008 compared with December 2007, there were 595 active listings against 606 in the latter part. These foreclosure listings are significant of a 22-month supply. At its peak, the monthly supply was a big 3.5 months different, of the Sedona market. This over-supply is the cause that has brought prices down, facilitating a significant number of buyers redirecting to the market.

The average price-tag dropped to $522,000 in 2008 from $593,000 in 2007. A more accurate measure will be the price per square foot which was $245 as in 2008, against $278 in 2007. It’s peak value in 2006 was $311, while the average price for a square foot for the 4th quarter was $228 as of 2008.

Because of Sedona being the home to many second homebuyers along with retirees, it is thus equally less prone to unscrupulous lenders or speculation or sub-prime loans, but you can never come out 100% clean and so it has its share. As of January 2009, 76 out of 595 active listings were found to be foreclosures or short sales (13%). Most lenders require the seller to be behind in mortgage payments in order to qualify, still there are exceptions.

Buyers, who find a short-sale, can get a good deal. Buying a property through a short sale include the advantages of buying at a discounted price along with buying a house where the sellers are still motivated to sell the home.

If you find a home at the Short Sale route, and the seller also agrees to your offer, you will then need to send it to the lender for his approval along with the required documents. The whole process takes around 90 days or more.

The dangers of bidding too low include, the Lender sitting on your application for as long as there are hopes of a better offer, working with a realtor becomes crucial here. The lender will pay the realtor’s commission or the buyer can also be asked to pay part of it.

Now, as though the home is sold “as it is”, but the buyer is entitled to do home inspections and match up to cancel if the home doesn’t pass. It is good to try and take steps for making your living peaceful without foreclosure.