After a very sluggish start, the Sedona home sales began picking up in May and finished the first half of the year with a unusually strong June – 49 single family residence closings with a median selling price of $450,000 and an average cost per square foot of $238. Those figures helped pull up the Mid-Year Sedona Homes Median to $437,500 and the Average $/sq.ft. to $220, the highest we’ve seen since 2008. Some of that can be attributed to brisk activity in the Sedona Luxury Home Sector – there were nine sales over a million dollars in May and June alone – so we’ll see how well those levels can be sustained going forward.
As for the number of Sedona home sales, 2015, with 200, is still a tad (3%) behind the 2014 results: 206. But, that’s a considerable improvement over the 11% deficit earlier in the spring.
200
Sedona home sales year to date
96%
Non distressed sales of total market
Positive Signs in numerous locations
Another positive sign for the health of the Sedona real estate market is the continuing disappearing act of distressed properties (foreclosures and short-sales) – among homes and land. For homes 96.5% of the sales are now non-distressed; 95% for vacant land.
As noted in previous reports, the Sedona Luxury Real Estate Sector continues to be the star of the show: Eighteen sales of homes over a million dollars so far in 2015. At this point last year, there were fourteen. Keep in mind the 2014 was the best year for Sedona luxury homes since 2007. Not only have 28% more of these homes sold, they’ve sold at an average price per square foot of $377 – 22% higher than last year’s $309. But, hold on; two of the eighteen sales went for over three million and one was over four million. That skews the average up significantly. Still, the Sedona Luxury Home Market appears to be on a roll. I take that as a good augury for the general Sedona real estate market since those buyers are, by and large, among the most financially sophisticated clientele we see. If people who are the most knowledgeable about financial markets see a green light for the economy and major real estate investments, that’s re-affirming – and encouraging for the confidence of the average buyer.
If people who are the most knowledgeable about financial markets see a green light for the economy and major real estate investments, that’s re-affirming – and encouraging for the confidence of the average buyer.
At the other end of the Sedona real estate spectrum is the Condo/Townhome market, where we continue to see strength. 2015’s fifty-two sales is only a bit ahead of Mid-Year 2014 and 2013, but $/sq. ft. prices are up about 3% over last year and 8% over 2013. And, the median selling price is just under $300,000 ($298,500). Days on Market are up about 20% this year, but all-in-all, it’s a steady, healthy market.
The weak link right now, however, in the Sedona real estate market is still the Vacant Land Sector. Not much happening there so far this year, especially compared with 2014. That year was the best, in terms of numbers of sales, since 2005. At Mid-Year 2014, we saw seventy-nine sales. This year, fifty-five. The current median selling price ($148,500) is down 9% from Mid-Year 2014 and 4% from the end of 2014. Sales prices and numbers were boosted by that year by a sell-out at the upscale Rimstone subdivision. With inventory remaining relatively high and prices, for the moment, suppressed, vacant land offers some of the best opportunities for future appreciation in the Sedona real estate market. Remember, Sedona is surrounded by National Forest and what vacant private land exists now cannot be replaced once the area is built out. The closer we get to that situation, the more land prices will spike the years ahead.