Just like the eighty-degree weather we experienced throughout Thanksgiving Weekend, the 2017 real estate market in Sedona is turning out to be record setting.
With about a month left to go in the year, Single Family Home sales have already equaled 2016’s impressive total of 424 – the highest of the past decade. In fact, it’s the strongest showing since 2005. That year saw 582 sales, so we’re hardly up to that rarified level, but it’s remarkable nonetheless. Still, with a Median Recorded Sales Price of $521,000 at the end of November, we’re not far off 2005’s $529,000 price level. That figure was, by the way, a monster leap from only $420,000 in 2004. The median price peaked at nearly $600,000 by mid-year 2006, even as sales numbers began to decline abruptly in the fall finishing the year at 385.
If vigorous pending sales figures are a reliable indication, December and January will see more closed sales than usual and mark 2017 as an extraordinary year for Single Family Residences. What makes such an achievement even more remarkable is that it occurred when inventory was at the lowest levels on record.
Happily, that strength is also to be found in the robust Luxury Home sector and in the stellar Condos and Townhome Market. Even Vacant Land continues to show notable vital signs not seen for a decade.
It’s been a breakout year for Luxury Homes. Even with a month left in 2017, it’s the fourth strongest year for million dollar-and-up residences on record. Its 34 sales, so far, beats every full year since 2007. And yet, it remains a source of excellent value for buyers. Its average cost per square foot of $335 is the third lowest of the decade and an 11 percent drop from 2016. And, unlike the rest of the housing market, luxury home inventory has risen to normal levels.
Meanwhile, Condos and Townhomes continue their meteoric rise. The 114 sales, in late November, not only outstripped 2016’s full year total of 95, they beat every year going back to 2004 – including 2005. The median sales price of $280,000 was the best since 2008.
Finally, the much-abused Vacant Land Sector will also set a new record for number of sales. Like homes, land sales, with about a month to go in the year, have already hit their highest level since 2005. Roughly 130. The Median Price, although improved to $145,000, remains somewhat disappointing, however, especially when we recall that it was $519,000 in 2006. That said, it certainly beats last year’s $130,000 and is the fourth highest of the past decade. So, its made considerable progress in returning to health.
With all this robust activity across the board, do we need to worry about a new bubble? No. It’s been a slow, six-year process getting to this point since the Market Bottom in 2011. And, price increases have been gradual, reasonable, and sustainable. It’s a solid, stable market. Enjoy!