Idiosyncratic. Often contrarian. Year to year, the Condo/Townhome Sector of the Sedona real estate market acts in ways that sometimes defy logic. With sales of Single Family Homes, Luxury Homes, and even Vacant Land booming in 2020, sales of Condos and Townhomes were down 50% compared to the previous year. In the 1st Quarter of 2021, they were up 68% and prices had risen 20%. But, that may be limited in the months ahead because of the severe lack of inventory – which is down 67.5% from 2020.Demand is out-striping supply and prices are, obligingly, rising to the occasion. In 2020, the Median Recorded Sales Price of the Solds was $380,000. So far this year, it’s $454,000. The average price per square foot is up 20%, from $280 to $336.
Diversity – along with a relatively small sample size – makes this sector of the Sedona real estate market the most volatile. It comprises everything from a $220,000 500 sq. ft., one bedroom unit at Sedona Sunrise to a 3,312 sq. ft., $1,350,000 luxury townhome at Seven Canyons Golf Resort. Sorting out the sector by separating condos from townhomes would help. Condos are generally smaller and cheaper. Right now, three quarters of all Condo/Townhomes on the market are the newly constructed Park Place Condos – selling from the mid-$600,000’s to the high $700,000’s.
Many people, including Realtors and developers, seem to be kind of fuzzy on the difference between the two. Typically, more than half of the units listed in the MLS as Condos are actually townhomes. And, condos make up only about 20% of the whole sector.
For the record, there is a difference, in both ownership and design. Condos are typically units in a larger building – think apartment-like complex, like Oak Creek Estados. One owns the space within the unit’s walls and an interest in the common area. You could have another unit above or below you. With a townhome, you own the ground underneath you and the space above you. It could be a single level home or a two story, but you won’t have neighbors above or below – just next door beyond a common wall or two. If you have a patio or small yard, your townhome is a patio home.
In any case, such homes remain a popular segment of the Sedona Real Estate Market. An interesting anomaly is that, historically, the active inventory of the Condo/Townhome Sector is about 12% of Single Family Residences, yet its closed sales are roughly 25%. That’s because they make ideal, affordable, low maintenance, turn-key second homes for the part-time residents, investors, and first-time home buyers as well as retirees. The one caveat is: be sure to take Home Owners Association fees into account and find out what they cover. They can range from $75 per month to well over $500. The higher fees generally come with such amenities as clubhouses, pools, tennis courts, and privacy gates. Some cover the cost of extensive exterior maintenance and insurance, others just common area landscaping. It’s a question of the sort of life-style you want or care to afford. Of course, that also applies to whether or not living in a condo/townhome community is for you in the first place. In any case, they’re worth considering.