The trends we’ve seen since mid-year continue. Single Family Residence sales are off about 4% from this time last year, but their Median Recorded Sales Price is up 7.7%. Average cost per square foot, though is up a more modest 4.4%. All of that price rise has occurred since June. Distressed properties continue to be less and less of a market factor – less than 1% of the active home listings, with only one REO (foreclosure) currently.
The luxury home market ($1 million and up) has caught up with 2013’s banner year of sales and will likely exceed it by year’s end. Prices, though, are about 7.5% lower on a $/sq.ft. basis. Then, again the average size of the luxury homes sold is 11.5% larger. The larger the home, the lower the $/sq.ft. tends to be. So, let’s call it a wash. In any case, that luxury end of the market appears to be resisting significant price increases, making those homes something of a bargain.
4%
Increase in recorded sale price
11%
Increase in luxury home size
Average size of the luxury homes sold increaeses
The Condo and Townhome sector also appears to be on something of a roll. Sales numbers are on par with 2013, but the Median Recorded Sales Price is up 12% and $/sq.ft., 8%
Vacant land, however, is static. Sales and prices pretty much the same as last year.
That said, for the long term, expect prices across all sectors to produce an inexorable steady climb. The Law of Supply and Demand does, indeed dictate significant value appreciation across the board in the Sedona area. Surrounded as we are National Forest saleable vacant land is an ever-diminishing, non-renewable resource. Prices have to go up as the supply goes down. And, the supply of buildable land will continue to diminish.
For the long term, expect prices across all sectors to produce an inexorable steady climb. The Law of Supply and Demand does, indeed dictate significant value appreciation across the board in the Sedona area.