The big question for Sedona Real Estate professionals these days: Can the 2018 market match or even top the performance of record-breaking 2017? Credible analysts of the national market believe not. The National Association of Realtors has predicted a flat year ahead in terms of sales and prices. Despite that, early signs this year seemed to suggest a much more vibrant market locally.
Now that we are wrapping up the 1st Quarter, that trend is clearly affirmed. 2018 is off to a roaring start in most market sectors. If the national economy stays strong, I expect this year to outshine 2017.
Inventory remains at historic lows
Sales of Single-Family Residences are already ahead of those in 1st Quarter 2017 by an impressive 20%. The Median Recorded Selling Price is up about 7% and the Average Price Per Square Foot has advanced roughly 8%. More good news for sellers: Cumulative Days on Market for sold homes has dropped 23 percent from 203 days to 157. Inventory remains at historic lows, but climbing and Pending Sales are close to what they were last year. That low inventory is a gift-wrapped invitation for home builders to produce new homes for the market. That is beginning to happen. Expect a significant jump in housing starts this year.
this is the most robust start for the Sedona Real Estate Market since the Boom Years Roy E. Grimm
The Luxury Home Sector is now cranking at a pace that puts sales of million-dollar homes considerably ahead of last year’s remarkable showing. At the end of March, there were 11 recorded sales versus 9 in 2017. The impressive difference, though, is in Pending Sales: 3 in 2017 versus 9 in 2018.
Vacant Land has long lagged behind Housing’s post-recession recovery but is picking up momentum. Sales are up 78%, year-over-year; the best performance since 2005. Prices are starting to kick up, but they remain a far cry from the boom years. Still, with the 2018 Median Record Selling Price in the neighborhood of $150,000, we are 15% ahead of December 2017. And, the land inventory is down 15% from last year’s 1st Quarter. There are, nevertheless, about 250 parcels on the market and the Cumulative Days on Market of the lots that have sold is 423 days. It’ll take a while to thin those numbers, but things are definitely on the move, given such a strong pace of sales. Prices shouldn’t be too far behind.
Always the odd duck of the Sedona Real Estate Market, Condos &Townhomes is the only sector in which sales have actually slipped compared with 1st Quarter 2017; down about 18 percent. Chalk that up to unprecedented low inventory. Prices, however, are up about 6% and we are now seeing that attract more sellers to the market. That will remain a vibrant sector for a long time to come.
All in all, this is the most robust start for the Sedona Real Estate Market since the Boom Years.
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