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.