What a difference a year makes. By mid-June,2016, the market stats were dismal across the board in all Sedona real estate sectors. 2017 is a whole different ball game – from luxury homes to even land.
Single Family Residences are certainly on a roll. Sales are up about 26 percent over last year – and we’re on track to rack up the highest number of sales since 2005 – if we don’t go off the rails. The Median Recorded Selling Price of those homes has been remarkably steady over the last three months, currently about $500,000 – roughly 8 percent over last year. Their average price per square foot has also hovered, consistently, around $235 – up about 4 percent.
RALLY IN LUXURY HOME SALES
2016 was an odd year, though. Typically, spring is the strongest real estate season, followed by a summer slowdown before picking up steam again in the fall. Last year, we saw an uncharacteristically lethargic spring followed by a summer rally that gained momentum through the end of the year. That led to the strongest winter season in living memory and set the stage for the 2017 spring fireworks.
The rally in the Luxury Home Sector was even more dramatic. By the end of June, 2016, there had been only nine sales of homes over a million dollars. This year we’ve had nineteen so far – and, presently, there are six pending sale. If that trend continues to play out for the rest of the year, we’ll have the best year in luxury homes since 2007 – the peak of the luxury home market.
I firmly believe that 2017 is shaping up to be, “The Year of the Land Market Comeback.” Roy E. Grimm
I firmly believe that 2017 is shaping up to be, “The Year of the Land Market Comeback.” That progressing nicely. Land Sales are up about 44 percent. The MRSP is currently $160,000 – up 18 percent over June 2016. But, it’s 48 percent over the market bottom of $108,000 that we hit just last March. The consensus of the pros is that land buyers are now primarily “end users” – that is, people who intend to build fairly soon – rather than investors. That’s a healthy sign for a more stable market.
Surprisingly, but thanks to a profound lack of inventory, sales in the Condo & Townhome Sector are 28% below 2016 levels. Beyond that things get even more interesting. Although there have been 34 closed sales this spring, there are 12 sales pending, and a mere 29 active listings. Demand is out-striping supply and prices are, obligingly, rising to the occasion. In 2016, the Median Recorded Sales Price of the Solds was $241,000. This year it’s $310,000 – up 29 percent. The average price per square foot is up 14 percent, from $203 to $232. Some of that is due to more sales of luxury townhomes, but clearly, it’s a hot market.
Hot, indeed, for the entire Sedona real estate market as we head into summer.
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