Sedona Housing Market Outlook - Tipping Point

Here is some historical advice about the timing of a new Sedona home or Sedona remmodel.

The U.S. housing market made a strong comeback in 2013, with home prices rising roughly 12%. The chief economist for Fannie Mae reports that 2013 was the year that the housing recover got on a firm footing, and now sees "a continued but measured housing recovery as we move through 2014".To echo this sentiment, the S&P Ratings Services overview for 2014 also paints a decent housing picture for 2014. According to it's year end report, the S&P expects another 6% increase by the end of 2014. While this is a statistical drop, it can be viewed as a healthy sign for a more sustainable upswing. The S&P report predicts that housing will remain a focal point of the economic recovery in 2014. It also projects that the risk of another recession is at 15% - 20%, so negative home values will continue to disappear and the housing market will strengthen. U.S homebuilders reported strong revenues and earnings in 2013 with supply and demand to remain favorable through 2014 according to S&P.How does this translate to Sedona? We saw a similar pattern and can expect a similar 2014 outlook. The difference in Sedona, however, is in the current mix of available housing inventory. There are "slim pickings" in the low and mid price points. So buyers are faced with less than desirable choices if they want to buy from this inventory. Much of it will require remodeling dollars at some point. The cost of many remodels may not be able to return the investment for may years to come. This raises the all important question about buying or building a new home instead instead of settling for second best.

Tipping Point: Here is some advice for anyone planning to relocate in Sedona or move to this amazing place from another region.

• 2014 is poised to see the tipping point where it will be favorable to build a new home in Sedona. Here are some of the key the factors.
• Lack of new homes to choose from
• Lack of remodel-free inventory in the low to mid price range
• Land prices are still low BUT expected to catch up at a stronger pace.- Construction costs are rising moderately.
• Lenders are looking to get back into the game.- Consumer confidence is still fragile but stronger than 2013
• Engage with a Realtor who will show you existing homes AND vacant land, so you can compare the future value of your move.
• Solicit the advice of home designers and architects who specialize in residential design to help you evaluate the potential market value from a design standpoint.
• Solicit the advice of a builder/remodeler so you can evaluate costs before you make your decision.
• Finally, the long term value of a 2014 new home in a good location will be much greater that the modest remodel of an older home in the wrong location.