The final results are in for the 2015 Sedona Real Estate Market. They’re a mixed bag but, overall we’re mostly seeing progress.
Single Family Sedona Home sales did finally break the 400 mark in 2015 – coming in at 408. There were 392 in 2014 – a 4% gain. The Median Recorded Sales Price rose 2%, from $427,500 to $437,000 – though the Average Cost/Square Foot ticked up only 1% to $217. The lowest rate of appreciation since the Sedona real estate recovery began. Then, again, $437,000 is a 32% improvement over 2011’s Bottom at $330,000 and 27% short of 2006’s Peak MRSP of $600,000
How Did the Market Sectors Perform?
The Sedona Luxury Home Sector, after two and a half robust years, took a dive in the second half of 2015. Eighteen sales in the first six months and only eight in the last. Prices, however, did advance 9% over 2014’s relatively low $326 /Sq. Ft. to $355. Good news for sellers. Not-so-good news: time on market for those Solds jumped 29% – from 364 to 469 days. Inventory is creeping up as well and the sector continues to be full of excellent value for luxury buyers.
The Sedona real estate Condos/Townhome Sector, showed spunk in 2015. Sales hit the 100 mark. Only 90 sold in 2014, so an 11% increase. And, the MRSP – $270,000 in 2015 – up from $240,000 last year – is a 12.5% increase. Oddly, though, the Average Cost/Sq.ft remained even. As the national economy strengthens and consumers are increasingly able to afford more discretionary spending, I think we’ll see second home sales pop. Townhomes are a natural choice for buyers seeking modestly priced, turn-key vacation residences.
The one weak link in the Sedona real estate garland is Vacant Land. That sector had a major rally in 2013 and a fairly strong 2014. 2015, though, proved to be a disappointing regression. Sedona land sales were down 19% – from 129 to 105 & the MRSP dropped 10%, from $155,000 to $139,000. That’s a 14% improvement over land’s bottom of $121,500 in 2012, but a far-cry from 2006’s $519,000. In any case, land cannot stay depressed indefinitely. Sales may be slow for now, but vacant land does continue to sell and be built upon. Thanks to our being an island of private property surrounded by National Forest, we have a finite supply that is ever diminishing. The Law of Supply and Demand will eventually begin pushing prices up to the stratosphere for Sedona real estate, in general.
In any case, land cannot stay depressed indefinitely. Sales may be slow for now, but vacant land does continue to sell and be built upon. Thanks to our being an island of private property surrounded by National Forest, we have a finite supply that is ever diminishing.
Roy E. Grimm
As that starts to happen, expect to see more and more teardowns and rebuilds of older properties, especially those with great locations and views – and, sharply rising prices of Sedona real estate across the board.
Beyond its gorgeous scenery, pleasant climate, and delightful & cosmopolitan population, Sedona, I believe, will be increasingly be a draw as a sanctuary set apart from the chaos that appears to be growing rampant in the rest of the world. That can only boost Sedona real estate valuations.
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