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You've heard “Location, Location, Location”. That
is the biggest determining factor for property values
in the Verde Valley . We are comprised of roughly
seven towns and each town has their own value range
in property. In Sedona, you could have a basic house
built 40 years ago that would sell for $250,000
in some areas of Sedona. |
| But, put that same house on a hilltop
with fantastic views and the home could become worth
$750,000 or more. It is often times not the dwelling,
but the location that will have the most bearing
on the value. The price per square foot of dwellings
varies in these different towns. In late Spring
of 2004, the average price per square foot for a
home for sale in Sedona was $310, Cottonwood comes
in at $121, Clarkdale $143, Jerome $141, Cornville
$145, Camp Verde $153, and Lake Montezuma/Rimrock
$138. |
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While most places in the United States have experienced
a housing boom that has led to a dramatic increase
in property values over the past 2-3 years, the
Verde Valley has experienced an upward growth for
over 25 years. |
| According to statistics of housing
within the Verde Valley , there has not been a loss
in property values year over year for over 25 years.
While housing remains fairly affordable in the area,
with top of the line, new build homes with views
costing no more than $300,000 in some places, and
even some homes for sale still under $100,000 in
parts of the Verde Valley , this area probably will
not see the peak of home values for another 25 years
to come. Over the past ten years, the value of homes
has increased at a rate of % annually. Over the
past ten years, the rate of vacant land has increased
30% annually. Move here for the beauty of the area,
and buy your home for the potential earnings. |
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Interest rates will affect the value of a home.
In a market like Verde Valley where the percentage
of cash buyers is much higher, this can have less
of an impact in retention of value in the face of
the changing interest rates. |
| However, consider this: When interest
rates are at 5% on a 30 year loan for $150,000,
the buyer's payment is $805.24 a month. The monthly
difference on an 11% loan is an additional $623.25
a month. How does this affect the value of a home?
When interest rates are low, as they have been for
a while, more people can afford the $150,000 home.
That means more potential buyers. When there is
more demand (buyers) than supply (homes), the price
of the item goes up. When there is more supply
(homes)
than demand (buyers), the prices go down. The same
holds true on a greater scale for homes. If interest
rates go up, thereby eliminating potential buyers,
a seller might have to drop the price of a home
to have more potential buyers. |
Sedona Real
Estate * Cottonwood Real Estate
For Sedona real estate, Cottonwood real estate, and real estate for all
the
Verde Valley it is High Valley Real Estate. The
largest independent real estate company
serving Sedona, Cottonwood, and the Verde Valley
Sedona Real Estate *
Verde Valley Real Estate
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