Posts by : Wally Reule

We are proud of the level of service that we provide to our clients, but this testimonial that a recent client posted on Zillow is so good that it will make her blush when she sees that I have posted it.

"I am happy to contribute another 5 star recommendation.Her knowledge of homes in the Sedona area in immense. She, herself, had owned property in the very neighborhood I was searching . My last home purchase was over 35 years ago so I was not real familiar with the process. Jan helped me understand the interplay between buyer,inspectors, financiers, title company, the seller and their agent. Most often she answered her phone herself. It was never more than a few minutes for a call back o...

On July 2 the city council approved the construction of Sedona's first "landscape hotel". If you don't know what that means it's not surprising because there are only a few others in existence at this time. The idea is that the rooms will give the feeling of being immersed in, and actually part of the landscape. Below is a link with a rendering of what it is expected to look like, and a fuller description of the concept. What is not apparent from the rendering is that although the location is close to State Route 89A, it will not be visible from the road. I'm looking forward to seeing the finished product! Here is a link to the full article. 

Online real estate companies are starting to gain some traction in Arizona. I'm talking about companies like Redfin, Opendoor and Zillow that will offer to buy your home, handle all of the paperwork and charge a low commission. They are growing in larger markets like Phoenix, where we're told that they could get 20% of the market. But at the present time their presence in the Sedona area is negligible. There may be good reasons to use them, but be careful. Perhaps the best reason is to have a quick and relatively sale. But at the end of the day, what matters most to the majority of sellers is the amount of money they put into their pockets when the sale is complete. And that's a function ...

After a slow start in 2019, the local market is back on track for a solid year. It seems that what is happening in the Verde Valley is consistent with the national real estate scene. In a nutshell, lower than anticipated interest rates have kept more first time buyers in the game. Prices are continuing to increase, but at a slower rate than in recent years. Low inventory has helped keep prices up, and well priced homes that come on the market are under contract pretty quickly. I just read an interesting article in Yahoo! Finance that goes into a little more detail. It's worth the read, so here is a link to the full article.

Real estate sales in Sedona started off pretty slow this year, and while they have not yet caught up with last year, they are getting stronger again. Through the end of May, the number of homes under %1,000,000 that have sold is 191, which is 12% fewer that the same time period last year. Also, the median sales price is down 3% to $555,000. Vacant land sales are down 25% compared to last year. The bright spot is luxury homes over $1,000,000. 25 have sold this year compared to 21 last year. For more detail please see our Market Statistics Page.

I just came across an very interesting article on Moving.com. It lists eight mistakes that can cost home sellers time and money, and it starts with hiring the right agent to help you avoid these mistakes. I couldn't have said it better myself. so here is a link to the article.

A new 58 unit townhouse development has been approved unanimously  by the Sedona Planning & Zoning Commission. Located on State Route 89A, between Foothills South and the high school, it will help satisfy the demand for quality homes that are mid sized and good for lock and leave part time residents. In order to allay any concerns over transient residents, short term rentals will be prohibited. For the full article in the Red Rock News, click here.

We have had an unusually wet and cool Spring, and a couple of days ago nature brought a magnificent rainbow right to our front door. Of course, I took a picture, and here it is. But I was also reminded of a picture I took from the same spot on Christmas morning two years ago, so I have also included it.  It's fun to see how diverse our weather can be.

The New York Times travel section recently published a fascinating article on local wineries. It focuses primarily on wineries in Page Springs, Cottonwood and Clarkdale. It's nice to see that they are getting the kind of notice that they deserve, and to recognize so many of the names. Here is a link to the article.

One of the things that I love about Sedona is the wide variety of cultural events offered here. We enjoy events that you would never expect in a town of this size, and I believe it's because of all the interesting people who live here and are so involved in supporting the arts. The Sedona International Film Festival is just one example. Next Sunday, May 26, they will premier the Royal Shakespeare Company's production of "As You Like It". For more information, follow this Shakespeare Link.

If you've been putting off a real estate transaction because you feel like interest rates are too high, and going higher, you might want to reconsider. Yes, rates are off their historic lows from a couple of years ago, but they're still pretty darned good. In fact, the average rate now for a thirty year fixed mortgage has gone down each week for the past three weeks, and now stands at 4.07% compared to 4.61% a year ago. Rates are staying low now because of concerns over a trade war with China, and smart money is moving to safer investments. But when the China issue is resolved, it's likely that mortgage rates will resume their upward march.

The Sedona real estate market has slowed a bit from last year, which was very strong. And whenever the market is strong, it attracts many new agents. However, the real estate business is complex, and while we wish them well, we also know that it can take years of experience to develop the skills needed to be a top agent. I posted the following graphic a couple of years ago, because it shows what it takes to professionally represent a seller, but now is a good time to share it again. If you are thinking about selling your home, make sure that your agent has all of these skills. Jan and Wally have been successfully representing sellers in the Verde Valley for over ten years, and our testimo...

One of the challenges in setting a listing price is that owners are sometimes convinced that they know the value of their homes because Zillow told them so. And it may be right, or it may not. Real estate websites use a program called an Automated Valuation Model (AVM) to determine the value of your home. However, each uses different mathematical models and data bases to come up with the value of your home. As a result, there can be quite a range, depending on how you ask. To test it, I looked at the AVM for one of our former listings in Cornville. I checked five different sources, including Zillow, Trulia, Realtor.com, Homes.com and RPR. The low estimate was $287,842 and the high estimat...

The numbers are in and they are down from a year ago. First quarter sales of single family homes under $1,000,000 dropped this year to 92, or 15%, compared to 108 in the same period last year. The median sales price increased 3%, to $559,500. Sales of vacant declined sharply to 33 from 48 last year. For more detailed information, go to our Market Statistics web page.

Interest rates last week experienced their biggest drop in ten years. That's good news for home buyers or for people who may want to refinance their mortgages. The average rate for a 30 year fixed mortgage has declined in the past year from 4.40% to 4.06%. Concerns over a possible recession on the horizon are keeping interest rates low. However, home prices continue their slow climb as low inventory is still the norm, but low interest rates can help keep home ownership possible for many buyers. Here is a link to an article from CNBC with more information.

A friend recently forwarded a New York Times article entitled "Translating Broker Babble". It was very interesting, so I'm passing it along via the link below. Rest assured that we speak plain English with our clients, so this is for entertainment value only.

New York Times Article

Home Prices in the Sedona area peaked in 2006, before the crash, and started the road to recovery in 2012. It was just last year when prices finally got back to the 2006 high water mark. But what can we expect as we go forward? 

The graph below shows historical home prices in our area from 2000 until the present, and then projected prices until 2024. These projections come from Collateral Analytics, and they show continued moderate growth, with a possible dip in 2021. The main driver continues to be under-supply, and with relatively high building costs, that is likely to continue. So if you're waiting to buy a home until prices come down, you may want to reconsider that decision.

Prices for vacant land are still much lower than they were before the crash in 2007, but with the low inventory of existing homes for sale, prices are creeping up. This listing of ours offers great views and is well priced.

4651 Red Rock Loop
Sedona, AZ

MLS# 517894 - Land

This exquisitely elevated acreage offers awe inspiring, unblockable, panoramic red rock views. Cathedral Rock could be the centerpiece view from your living area. Juniper trees and lush desert vegetation add to this lot's unique qualities. Privacy and massive red rock views coupled with close proximity to all the conveniences of Sedona are just a few of the reasons to consider this extraordinary piece of land ...

Will this be a good year to buy a home in Sedona or an nearby community. The answer is a resounding "maybe". Inventory is still low, and the good homes that are priced right go quickly, so keeping an eye on new listings and being prepared to act quickly are critical. If you will be financing your purchase, get pre-qualified. Interest rates are higher than they were a year ago, but have actually come down quite a bit since November. If you want to make Sedona your home, you can do it, but you'll just have to keep your focus. Contact us if you need assistance.

We all know how hard Jan works for our clients, so it's nice to receive this special recognition from Russ Lyon Sotheby's International Realty. She was in the top 3% of Russ Lyon agents for 2018, and is off to a great start in 2019.