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At the end of April, residential inventory level was at 378 units and in spite of 2 consecutive monthly increases that can be attributed in part to the seasonal uptick of new listed properties in early spring, the trend line indicates a steadily shrinking supply.
There is a definite correlation between inventory and price levels. Inventory is an important leading indicator of future price movement. In Sedona, inventory bottomed in the 4th quarter of ‘04 and prices peaked in the fourth quarter of ‘06.
Prices started stabilizing and improving in mid 2011 while inventory was at 2002-2003 levels. It is safe to say that as long as inventory is in decline, prices will continue to improve.
By Elisa Andreis J.D. of Russ Lyon Sotheby’s International Realty (928) 274 1521 www.SedonaFineHome.com