Hot Summer Market in Sedona

With such a strong start for the Sedona Real Estate Market this spring, there was considerable speculation about whether that momentum would carry over into the typically quiet summer season – particularly when we’ve seen some declines nationally.

Turns out that the answer is a resounding, Yes!  Pretty much across the board, all real estate sectors continue to pop with the strongest performances we’ve seen in years.

Single Family Residences are certainly still on a roll. Sales continue to be up about 26 percent over 2016 – for June and July, as well as for the whole year up to this point. If we manage to maintain that pace, we will, indeed, score the highest number of sales since 2005. The Median Recorded Selling Price of those homes remains steady at above $500,000 – roughly 9 percent over last year. Their average price per square foot has also been consistent: around $236 – up about 5 percent. More good news for sellers: time on market for Sold Homes has declined 7 percent to 193 days.

The compelling story for Single Family Residences and condos has been the dramatic drop in inventory. Active listings are down about a third compared with last year. In next month’s column, we’ll discuss how that is spurring new construction of “spec homes” and supporting the rally in the Vacant Land Sector.

Meanwhile, the revival of Luxury Home Sector has continued unbated. By late July, there had been 23 sales of homes over a million dollars. Last year at that point, there were only 11.  By the end of 2016, the total sold was a mere twenty-five.

At the other end of the housing market, sales in the Condo & Townhome Sector are now on such a record pace that we’re about 45 percent ahead of the average for the previous five years. If that is maintained through December, we’d have to go back to 2004 to find a stronger year. With 78 sold through the end of July and only 24 on the market, there is only a bit over a two month supply of condos & townhomes. That’s a remarkable absorption rate by any standard. Single Family Residences currently have a 4.8 month supply. So, in both sectors we have a strong Seller’s market. A balanced market is generally considered to be five to seven months.  So, it’s not surprising that prices are up. For Condos/Townhomes the latest Median Recorded Sales Price of the Solds is $282,000 versus $240,00 in 2016 – up 18 percent. The average price per square foot is up 9 percent, from $207 to $226.

Finally, the Vacant Land Market is still in Rally Mode. Land Sales are up over 50 percent and prices about 14 percent, with the MRSP at roughly $160,000. That’s nearly 50 percent over the market bottom of $108,000 last March.

This all-around robustness is welcome news for the Sedona market.