Sonoita Arizona Real Estate Happenings

Sonoita Real Estate update for April 2013

Charlie Kentnor — Tue, 14 May 2013 18:41:21 +0000

The strength in our market continues with a solid 7 homes being sold, six of those listed in the Tucson Multiple Listing Service and one by a non-member who specializes in ranches. The total volume was $6,368,000. Notable was the fact that what is know locally as Apache Springs and had become two properties, has been recombined into one at a selling price of $4,595,000! The property is a true equestrian property and meeting center with almost 19,500 sf of living space and 160 acres. A very unusual property.
The other properties ranged in price from $76,000 to $697,500. It seems the number of visitors continues to grow and some with the capability of making a large cash purchase are also coming. This profile continues to give credibility that our market is gaining strength and that it is getting very close to the point that we will see less willing sellers and rising prices. The value of properties in escrow as of today is $2,400,000 so we can expect the May numbers to be solid as well.
In closing, there were no land sales. This market continues to be very soft due to the lack of financing, lack of liquidity of potential buyers and the fact that it is less expensive to buy an existing home than it is to start from scratch.

Sonoita Real Estate: It’s a new year – but not a better year

Charlie Kentnor — Tue, 09 Apr 2013 20:55:12 +0000

2013 will be a very good year for real estate in Sonoita, AZ! However, we seem to be off to a slow start with both unit sales and total dollar value under 2012. However, all agents in the market are busier showing homes so we do expect that to be ultimately reflected in escrows, and that number is currently very nice.

The 7 homes closed in the first quarter of this year, (versus 10 last year), reflect the fact that the bargain hunter buyer is still very much in control. Three homes of the 7 that closed were under $100,000. Two were in our more common price range of $200,000 to $400,000. The remaining sale was for $600,000 for a home on 57 acres in Tunnel Springs. That was an outstanding value!

Land sales still reflect the fact there is considerable housing inventory and it makes economic sense to buy an existing home rather than buy a lot, put in electric, phone, a well, a septic system and then build your dream home. However, the margin is diminishing. The average price for the 7 sold homes was about $150 per square foot. I believe you could buy a nice lot in this market and build for close to that number. Four lots, (versus 3 last year), sold but for a total of only $431,500 or about $6,800 per acre. There are no real deals in that market even though the price per acre is quite low by historic standards.

There are currently 15 homes in escrow and one lot. That total is a whopping $9.5 million! Of that two adjacent sales represent $5.5M so the balance of $4.0M comes out to be around $300,000 which is moving in the right direction historically.

Even with the activity of this year and last, there are still 115 homes listed in the Tucson Multiple Listing Service for sale. They range in price from $65,500 for an historic 842 SF home in Patagonia to a 952 Acre ranch for $10,000,000 in the San Rafael Valley.

We have the inventory. We have attractive prices. And we have willing sellers. Come visit us real soon and buy your dream home in the Mountain Empire while the pricing is still favorable to the buyer. It may not last much longer.

USDA

Charlie Kentnor — Tue, 12 Feb 2013 22:05:57 +0000

Looking for other loan options? Here a video about one we have used in the past in this area.

USDA Loans

Want more info? Here’s a link to the USDA website:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1

If I can help, or if you have further questions, please be in touch: (520) 591-0425

The Sonoita Real Estate Market in 2012

Charlie Kentnor — Thu, 24 Jan 2013 17:13:06 +0000

Was this a better year? Are we heading in the right direction – up? Is it time for optimism?
The answers to all these questions is both “yes” and “no”. Unit volume in home sales showed impressive strength with 46 homes sold versus 30 in 2011 and 26 in 2010. Definitely the buyers are returning to the Sonoita area market. Not so impressive is the average sales price which was $282,466. Although this is up $20,000 from 2011, it is still $10,000 less that 2010. The bottom line is buyers are happy, but sellers less so. Nevertheless, the trend is positive and indicates we are off the bottom of our market. Barring any unforeseen economic news, both national and local, I would expect home prices to continue up another 10% or more in 2013.
Land sales are not nearly as good a story. Unit sales improved to 16 from 11 a year ago and 12 in 2010. Still a paltry number by historical standards. The average transaction retreated $3,000 to $74,588. In 2010, the average of the 12 sales was $120,250.
With a median price per square foot of $120.00, I anticipate another couple of years before land prices improve. The economics favor buying an existing home versus buying raw land, adding improvements like a well, septic and phone and then spending $110 to $140 per square foot to build your custom home.
If you are interested in a specific area of this market and how it did, or would like to receive a free valuation of your home, please be in touch.

Do you want to go to college for free?

Charlie Kentnor — Fri, 11 Jan 2013 20:11:07 +0000

This video is a quick look at how you can go to college for free these days. Not necessarily for credit, but to take courses at some of the finest and most prestigious colleges and universities. Check it out. Take a course.

http://realestatemarbles.com/realestatevideobox/2013/01/09/upgrade-your-life-for-free/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+RealEstateVideoBox+%28Real+Estate+Video+Box%29

Or try this website: www.coursera.org

Merry Christmas and Happy New Year

Charlie Kentnor — Wed, 26 Dec 2012 18:51:32 +0000

Wishing everyone a healthy and prosperous 2013 from Tijuana where we have been enjoying the holidays with our family.

11 Month Market Report – Entering the home stretch

Charlie Kentnor — Mon, 17 Dec 2012 22:31:06 +0000

We have had a good year, but we have not had a great year. With 38 homes closed and 16 lots closed our unit count is way up. However, with a total sales volume of $11,214,882 we have not enjoyed the increase in our market one might expect. Unit sales are up 50% while dollar volume is up 53%; and so dollar per unit is about the same. All this is good and indicates an improving market in the Mountain Empire.

The future looks to be favoring the seller – finally. Lower priced foreclosure and short sale homes are almost completely gone from the marketplace. Buyers are looking at land parcels, but it is still more economical to buy an existing home than buy a lot and start from scratch. Therefore, some of the land transactions are probably for investment purposeless.

As of a few days ago the value of homes in escrow was $1,931,454. These should close in the next two months and indicate a good start to the the new year.

Mortgage rates are expected to remain low for the next year, and may even drop a bit before starting back up. Sellers, now is the time to spruce up your home and possibly put it on the market this spring if you are thinking of moving or trading up. Buyers have missed the bottom of the market and will find sellers less interested in “low ball” offers.

Happy Holidays!

Shadow Inventory – What it means

Charlie Kentnor — Fri, 02 Nov 2012 15:57:04 +0000

Here is a short video from our friends at Real Estae Video Box that should answer some of your questions on shadow inventory.

Shadow Inventory and Property Values

Three Quarters of 2012 have passed – Real Estate statistics

Charlie Kentnor — Mon, 22 Oct 2012 22:29:32 +0000

A horse property not to be missed.

As we approach the home stretch for 2012, there is good news to share. The number of transactions for homes is up about 50%! However, the average price is virtually unchanged at $266,741.

The average market price for homes is probably off about 35% – 50% from the high in 2007 and so there is a ways to go before homeowners will feel as if they are getting a “fair price” when they sell. It is however, fast approaching a seller’s market and it has already reached that point in many of the Tucson neighborhoods.

The housing inventory has spiked to 117 a couple of days ago from about 95 to 105 previously. Lots are not selling well, even at excellent offering prices. Twelve lots have closed so far this year versus 10 in 2011. Why build when you can buy cheaper? We have several bank owned and foreclosure properties at the moment, but they will probably flush out by the end of the year. Our market is most likely at its bottom and will rise for the foreseeable future.

At this time, there are 7 properties in escrow to close at some point. Of these, 6 are homes with an average asking price of $280,333. When they all close, my guess is the average will be similar to that for the first nine months. By historical measures, this market is quite affordable!

If you, or any of your friends and family want to do something, I would suggest looking in earnest. I’m thinking I am going to be saying “you should have bought last year” to an awful lot of people next year. Cash is very much the king at this time. In a year, with better comps and buyers able to sell their homes elsewhere to move here, it is not going to be as big a factor. The seller will be more in the driver’s seat and will go for the highest offer.

I look forward to hearing from you.

320 Acre Homestead Ranch in Elgin, Arizona

Charlie Kentnor — Wed, 08 Aug 2012 17:53:35 +0000

Our beautiful 320 acre homestead ranch is now back on the market following the completion of an addition to the living quarters we occupy. It is now really nice and homey. Nevertheless, it is time for us to move on to some new adventures in our lives before we are too old to be adventurous! Check out the link for Vaughn Canyon Ranch and pass it on to anyone you think might have in interest in this gorgeous property.
This is a perfect property for someone who either wants to live the western dream or who would like to develop an unparalleled equestrian training facility. It could also be a vineyard, corporate retreat or getaway spa. Only one hour to Tucson International Airport. and less than 45 minutes to either the Sierra Vista or Nogales airport if you have your own aircraft.

http://www.headquarterswest.com/listings/vaughncanyon/index.htm

The Sonoita Area Real Estate Market – First 6 Months of 2012

Charlie Kentnor — Fri, 13 Jul 2012 22:43:28 +0000

This is the first of what I trust will be a succession of positive real estate news from the Sonoita, Elgin and Patagonia area of Southeastern Arizona. I knew we had been busier than last year, but not all the buyers that were showing up were writing contracts. They were sure looking and asking questions, but they were still reluctant to write an offer. It turns out that they did write more offers and there were 9 more closing than in the first half of 2011. The deals were still hard fought as the average sale price for a home was marginally lower than in 2011. However, more activity will ultimately lead to less inventory and rising prices. If you are one of those buyers who is thinking better deals are on the horizon, I’d think it may be best to step to the plate now.

Here are the numbers: In total there were 31 closings posted through the Tucson Multiple Listing Service. Of these, 20 were homes and 11 were land sales. This compares with 19 in 2011 of which 11 were homes and 8 were land. As you can see, most buyers were opting to buy a home which makes perfect sense. With an average price per square foot of $115, buying “used” make a whole lot more sense than buying a lot, putting in a well and septic and then paying $115 or more to build a new home. Of course you don’t get exactly what you want, but you can move in now instead of 9 months or a year from now – and with relatively little hassle.

The total dollar value of this year’s market was $6,496,620 versus 2011 when it was $3,814,129. That’s about a 70% increase which is good for our sellers as well as for agents.

In closing, the Tucson market is quite healthy at this point. In fact, the inventory level as measured by months of inventory, is 5 months or less. “Normal” is 6 months. There are already many instances of multiple offers on properties. Since the Mountain Empire market lags Tucson by about six months, you can see what is about to happen here! Stay tuned. I trust I will be sending you another positive report after the end of September.

Open

Charlie Kentnor — Sat, 16 Jun 2012 21:32:51 +0000

Come visit our office. We are always open to discussing local real estate or lifestyles. The Sonoita, Elgin and Patagonia region of Southeastern Arizona is truly magnificent!