Mixed Market Results at Mid-Year

2018 was a record setting year for home sales of all types. This year saw surprisingly diverse returns in the first half of 2019. Single-Family Residences experienced something of a market correction. Luxury Homes and Condo/Townhome had a bit of a boom. And, Vacant Land saw sales drop precipitously, but prices kick up.

General home sales were down 13 percent compared with Mid-Year 2018. Some credit for the surge in 2018 homes sales can be given to exceptionally high demand for vacation rental properties last year. Though still significant, that demand seems to have tailed off some this year. Along with relatively slumping sales, the Median Recorded Sales Price of homes slipped to $555,000, down 4 percent from $578,250. Even so, the Average Price per Square Foot went up 12 percent to $280. Much of that can be attributed to the range being skewed upward with strong higher-end home sales.

For homes above $1,000,000, sales have been especially robust. Twenty-nine had sold by the end of June versus twenty-seven last year. Keep in mind that 2018 saw a record set for luxury homes, so the current pace is impressive. Some of that strength been supported by the fairly recent entry into both the luxury single-family residence and townhome markets by new construction at Seven Canyons Golf Club and its sister development at Sedona Ranch on Oak Creek. Many of the sixty-six Active luxury home listings currently available, are there – and a few of the sales. Despite booming activity in the sector, the surprise is that prices have not seemed to moved much at all – at least for the homes that have sold. The Average Price per Square Foot of those is $345. Last year it was $343. Among the current listings that have stayed in the market for a while, we are seeing some major price reductions. Buyers are increasingly value conscious regardless of their prices range. So, some of the best buys in Sedona real estate are in the luxury market.

With townhomes at Seven Canyons starting to sell above $1,000,000 and those at The Cottages at Coffee Pot in the $900,000 range, we’re seeing a new class of luxury townhomes becoming a major factor. Townhomes, in general, have become a hot item with sales up over 11 percent and the MRSP up 13 percent, to $334,000. The inventory has been at an all-time low: seventeen at Mid-Year. And, half of those were listed above $900,000. Only one medium range townhome was on the market in the City of Sedona. The rest were in the Village of Oak Creek.

The long-suffering Vacant Land Market continues to struggle. Sales are down 21 percent over 2018. One bit of good news, however, is that the MRSP is finally up 13 percent to $170,000. But, the average time on market for the sales is still 403 days. Inevitably that market will take off as vacant land disappears, but it’s anyone’s guess as to when.

In any case, we are now seeing excellent opportunities for prospective buyers of both homes and land.

About the Author

After a gratifying twenty-five year career in education, Roy turned his talents to real estate in 1997 and has been remarkably successful in helping his clients purchase and sell homes and land, happily, in the Sedona Area. A perennial top agent in Sedona and the Verde Valley, he’s earned such certifications as: Master Negotiation Expert, Harvard Program on Negotiation; International Property Specialist; Resort & Second Home Specialist; Master Certified Buyer’s Agent; Certified Luxury Home Marketing Specialist. 

Roy is an ex-college professor, school headmaster, past President of the Arizona Association of Independent Schools, and former-Marine captain. He initially committed himself to working solely with buyers, establishing his own real estate firm, Buyers’ Brokers of Sedona. For over fifteen years, Roy claimed the title of the number one Buyer’s Agent in the Sedona area. In 2014 he broadened the scope of his business to include listing and selling property.  Roy was the Sedona’s #1 overall agent in 2017 and in the Top 3 for the past five years. 

In 2019 Roy & Michelle welcomed two extraordinary real estate pros, Coco and Drew Clark, as business partners. Together they form a truly dynamic team that is destined to be one of the dominant forces in the Sedona market.

One of the early leaders in Sedona luxury real estate, Roy was a founding member and past President of the Sedona Luxury Real Estate Professionals and is recognized by Who’s Who in Luxury Real Estate.A native Arizonan who, in his characteristic contrarian fashion, grew up in New York, Roy moved to Sedona from Boulder, Colorado in 1991. He truly loves the aesthetic, cultural, and spiritual qualities of Sedona as well as its wild natural beauty. He and his faithful Pyrenean Mountain Dog, Sophia, and American Eskimo, Gracie, are often found hiking the extensive trails of the area and swimming in Oak Creek.  

A dedicated lover and patron of the arts, Roy is a past board member of The Arizona Opera, Chamber Music Sedona, and the Canyon Moon Theater. As a member and officer of the local chapter of the Chaine des Rotisseurs, an international food and wine society, he enjoys introducing his clients to the gastronomic delights found in Sedona.

 

Roy’s Certifications:

MCNE – Master Certified Negotiation Expert

CRS – Certified Residential Specialist

ABR – Accredited Buyer Representative

RSPS – Resort & Second Home Specialist

GRI – Graduate Real Estate Institute

CIPS – Certified International Property Specialist

CCSS – Certified Commercial Sales Specialist

CLHS – Certified Luxury Home Marketing Specialist


Roy’s Degrees: 

B.S. – Cornell University (History/Economics)

M.A. – Syracuse University (History)

Ph.D. – University of Colorado, Boulder (History & Philosophy of Education)


Roy’s community activities have included:

- Sedona Luxury Real Estate Professionals (Past-President) 

- The Sedona Mid-Day Rotary Club (Paul Harris Fellow)

- The Sedona Chapter of La Chaine des Rotisseurs (Charge de Mission)

- Sedona Arts Center (Sponsor)

- Sedona Cultural Park (Patron)

- Verde Valley Sinfonietta (Founding Corporate Underwriter)

- Chamber Music Society of Sedona (Advisory Council)

- Arizona Opera (Board of Trustees)