Idiosyncratic. Often contrarian. Year-to-year, the Condo/Townhome Sector of the Sedona real estate market can be full of surprises. For example, while sales of Single-Family Residences boomed in 2020, Condos & Townhomes were down 9 percent. In 2021, they were up 18 percent while Single-Family Residences rose only 6 percent.
For July-December 2022 compared with January–June, Single-Family Residence sales swooned a whopping 38 percent while Condo/Townhome sales fell-off a mere 7.6 percent. And, instead of the 12% Price per Square Foot slippage that we saw for SFR figures between those time-frames, Condo & Townhomes saw a 9% increase. Go figure. Yet, it does tell us something about the resilience of that sector of the housing market. Further evidence of that resilience: every year since 2017, its sales have averaged 11 per month. October 2022 saw 13 sales.
Diversity – along with a relatively small sample size – makes this sector of the market tricky to track. It comprises everything from a $220,000, 500 sq. ft., one bedroom unit at Sedona Sunrise to a 2,737 sq. ft., $1,724,000 luxury townhome at Seven Canyons Golf Resort.
People are often a bit fuzzy on the respective definitions. Typically, most of the units listed in the MLS as condos are actually townhomes. True 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, such as 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 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.
Be that as it may, such homes remain a popular segment of the Sedona real estate market. An interesting anomaly is that, historically, the number of Condo/Townhome listings is only about 12% that of Single-Family Residence inventory, yet the sector’s closed sales are roughly 25 percent of SFR’s. They sell well because they make ideal, affordable, low maintenance, turn-key second homes for the part-time residents, investors, and for first-time home buyers as well as retirees. One caveat: be sure to take Homeowners Association fees into account. Find out what they cover. They can range from $75 per month to well over $500. The higher fees generally come with such amenities as clubhouses, pools, tennis courts, entry gates, and private roads. Some cover the cost of extensive exterior maintenance and insurance, others just common area landscaping. It’s a question of the sort of lifestyle you want or care to afford. Of course, that also applies to whether or not living in a condo/townhome community is for you in the first place. In any case, they have demonstrated strong investment value and are worth serious consideration.
|Date Jan-Dec||# SOLD||Size||$/ sq. ft||MRSP|
|1999||118||1,322 sq. ft||$110||$146,000|
|2000||137||1,322 sq. ft||$119||$159,000|
|2001||124||1,223 sq. ft||$129||$158,250|
|2002||150||1,163 sq. ft||$153||$177,250|
|2003||154||1,270 sq. ft||$165||$209,475|
|2004||129||1,325 sq. ft||$211||$279,000|
|2005||111||1,176 sq. ft||$265||$312,000|
|2006||86||1,352 sq. ft||$288||$390,000|
|2007||59||1,226 sq. ft||$285||$350,000|
|2008||55||1,272 sq. ft||$232||$295,000|
|2009||54||1,303 sq. ft||$207||$270,000|
|2010||69||1,274 sq. ft||$196||$250,000|
|2011||56||1,270 sq. ft||$155||$196,500|
|2012||111||1,398 sq. ft||$158||$221,000|
|2013||96||1,403 sq. ft||$176||$211,500|
|2014||23||1,424 sq. ft||$198||$230,000|
|2015||100||1,539 sq. ft||$188||$270.000|
|2016||95||1,427 sq. ft||$208||$259,000|