A sharp debate among economists lately has been the degree to which our country is experiencing a  “K-shaped Economy” -  wealthy consumers continuing to spend while lower- and middle-income households cut back in the face of inflation, higher interest rates, and rising debt burdens. There  is consensus, though, that such is the case in the national housing market. And, Sedona, like most predominantly luxury local markets, seems to be a “poster child” for that trend.

By standard metrics, our market is generally healthy and gaining strength. By 31  August, single-family residence sales had increased 7% year-over-year with 2025 (281 vs. 262) . The Median Recorded Sales Price increased a bit under 2%, from $1,107,500 to $1,125,000. Cumulative Days on Market - how quickly property sells - declined 24%. These are not the statistics of a waning market. Demand remains fairly resilient despite affordability challenges – particularly rising mortgage rates.  Pretty much as classic Balanced Market.

Altos Research statistics concur. Its Market Action Index has stayed around 32 for much of the year, indicating a slight seller's advantage. Inventory remains relatively constrained and closed sales continue to outpace new supply. Yet nearly 42% of active listings have undergone price reductions, suggesting a market in which buyers remain both active and increasingly selective. Sensible pricing has become more essential than ever. Nevertheless, it is clear from relatively robust sales figures and continued moderate price appreciation that demand for housing in Sedona remains durable. Buyers may be picky, but they buy. And they are buying more expensive homes.

The evidence of Sedona's K-shaped market, though, emerges when we look beyond median prices to the distribution of sales. By late August, only three single-family residences had sold for less than $500,000 in the  Sedona Area and merely eighteen sold under $600,000. By contrast, forty homes sold for more than $2 million, thirteen exceeded $3 million, five sold for more than $4 million, and two surpassed $5 million. In fact, more than twice as many sales occurred above $2 million as below $600,000.

View Historical Sedona Market Statistics Here

Sedona may follow national trends, but our local market is distinctive. It probably has more in common with Santa Fe and Monterey than Cottonwood and Cornville. The current national median price for an existing single-family residence is $440,300, while the least expensive one sold in Sedona so far in 2026 went for $438,000.  As noted, Sedona's MRSP – the mid-point in the price range – remains steady at $1,125,000. Sedona has evolved into a predominantly luxury market, and its pricing increasingly reflects the persistently strong purchasing power of retirees, second-home buyers, remote professionals, households bringing wealth from outside the region, and real estate investors.

The result is a housing market that remains remarkably resilient in terms of rising sales, prices, and timing. That’s the upside of the “K-shaped Market” for Sedona home sellers. The downside, of course, is the continuing lack of affordability of the American Dream of home ownership for much of our local workforce, at least in Sedona.  It’s a dilemma difficult to remedy.  The pattern is standard for luxury resort areas around the country. Most people who work in Aspen, for example, can’t afford to  live there so they commute from Basalt 18 miles down the road, just as many Sedona workers commute  a similar distance from Cottonwood.