Overall, a good year for the Sedona Real Estate market. With the continuing disappearance of distressed properties, reasonably strong sales, and generally rising prices the market is certainly healthier than it’s been in nearly a decade.
Although the 392 Single-Family-Home sales in 2014 was a bit of a decline, 4.6% from 2013’s sterling 411, their Median Recorded Selling Price increased 8.2% from $395,000 to $427,500. That’s 22% up from the market’s price bottom in 2011. We’re still 27.5% below the record, $590,000, set in 2006, but gaining ground. The Average-Cost-Per-Square-Foot of those sold homes increased 4.4% from $206 in 2013 to $215 in 2014.
The underlying health of the market is reflected by distressed property sales becoming pretty much of a non-factor. Among Single-Family Residence sales, 3.5% were REO’s (foreclosures) and 1.25% were short-sales. In the current Active Inventory, there are two REO’s and one short-sale. Never, since distressed property statistics began being reported in late 2008, have we seen such low numbers. In any case, their impact on the general market is now negligible.
Distressed property sales becoming pretty much a non-factor.
The star of the housing show in 2013 was the Luxury Home Market with a 29% jump in sales over 2012, the strongest showing since 2007. Turns out that 2014 kept that streak going with the same number of sales for homes over million dollars – thirty-one. Despite robust sales in that sector, prices have stayed relatively low over the past six years. The Average $/sq.ft. in 2014, $323, was actually down about 6% from 2013’s $345. That’s an indication that some of the best value propositions are among luxury homes.
After a promising start in early 2014, the Vacant Land Market wound up plateauing more-or-less at 2013 levels. Sales this past year were only 4% ahead of 2013 and the MRSP slipped a tad, 1.5%, to $155,000. That’s still a 28% improvement over the land sector’s bottom of $121,500 in 2012, but a far-cry from 2006’s $519,000. So, a buying opportunity there.
The star of the housing show in 2013 was the Luxury Home Market with a 29% jump in sales over 2012, the strongest showing since 2007. Turns out that 2014 kept that streak going with the same number of sales for homes over million dollars – thirty-one. Roy E. Grimm
The land market has pretty well shaken out the distressed parcels; foreclosures now comprise less than 1% of the inventory. Another positive sign is that we saw an uptick in sales of luxury lots, though not enough to push the MRSP into positive territory. For the long-term, though, it’s prudent to think of land inventory as an ever-diminishing, non-renewable supply. Its increasing scarcity in the next few years will push prices up sharply for both homes and land.
The Sedona Condo/Townhome Market, for a change, followed the pattern set by Single-Family-Residences. Sales were down 6% in 2014, but prices were up. The MRSP rose 13.5% to $240,000 and $/sq.ft. climbed 8% to $190.
Finally, in the “Location. Location, Location” category, The 2014 Average $/sq.ft. for Single-Family-Homes sold in the City of Sedona was $223. In the Village of Oak Creek it was $203, roughly10% less.
Dr. Roy Grimm is the Head of the Buyer Brokers Group & a member of the Pennington-Grimm Team at Russ Lyon Sotheby’s International Realty. Email comments to Roy at [email protected] or visit www.SedonaRealEstate.com for the full statistical details.
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