SEDONA AZ Condos and Townhomes – Sedona AZ Real Estate
When is condominium a townhome and why don’t they just behave?
Over the years I have tended to track Single Family Residences as the bellwether of the Sedona real estate market and dance around the condos and townhomes. Why? Partly because SFR’s are, by far, the largest and most important sector of the market and partly because trying to make sense of the Condo/Townhome Market tends to make me even more bonkers than I already am. That market bounces all over the place and acts in ways that often defy logic as well as patterns established by the more normal sectors.
Part of its unpredictability lies in its diversity. The sector includes everything from a $99,000, 512 square foot studio unit at Casitas Tranquil to a $799,000 luxury townhome in the Cottages at Coffeepot. It even includes $720,000 hotel casitas at the Enchantment Resort. Sorting out the sector by separating condos from townhomes should help. Condos are generally smaller and cheaper. But, it also includes the luxurious Park Place Condos. Many people, including Realtors and developers, seem to be kind of fuzzy on the difference between the two. Half of the units listed in the MLS as Sold Condos for 2013 are actually townhomes. For most people the terms are inter-changeable.
Nevertheless, for the record, there is a difference. It’s a question of both ownership and design. Condos are typically units in a larger building – think apartment-like complex, like Oak Creek Estados. One owns the space within the unit’s walls and an interest in the common area. You could have another unit above or below you. With a townhome, you own the ground underneath you and the space above you. It could be a single level home or a two story, but you won’t have neighbors above or below – just next door beyond a common wall or two. If you have some land, even a small yard, your townhome is a patio home. That said, it still makes sense to lump the two together for the sake of tracking the market.
Here’s what’s been happening:
2012 was a turn-around year. Condo/Townhome sales doubled from 2011 and the Median Recorded Selling Price increased 12.5% from $196,500 to $221,000 – although the Price per Square Foot only increased 3% to $158. Days on Market dropped 28% to 255 days for the Solds.
In comparison, 2013 Condos Townhomes sales were 13.5% lower than 2012 (111 to 96), and the MRSP had dropped 4% to $211,000. Just to keep us off-balance, though, the Price per Square Foot figure rose 11% (from $158 to $178). Days on Market plummeted 48% to 134 days. Sort of self-contradictory, but the bottom line is that while prices appeared to be dropping, they were actually rising on a $/Sq.ft. basis. Sales numbers were picking up and condo/townhomes were selling nearly 50% faster than the year before.
For a little historical perspective, back in 2006, there were 86 sales and the MRSP was $390,000 with a $/Sq.ft. of $288. That was the top of the market for price. For a sales record, surprisingly enough, we have to go back to 2003 when 154 were sold, with a MRSP of $209,475,000.
All in all, 2013 and 2012 were come-back years for Condo/Townhome owners and buyers. Sales were stronger than they’ve been since 2005. The price picture is mixed, but still the lowest they’ve been in a decade. Look for a significant price bump in 2014. For buyers, we have a window of opportunity before that happens. Condo/townhomes are low maintenance residences, ideal for second homes and investment properties. It’s time to give them the attention they deserve.
Sedona Condos/ Townhomes 2013 Statistics
|Date Jan-Dec||# SOLD||Size||$/ sq. ft||MRSP|
|1999||118||1,322 sq. ft||$110||$146,000|
|2000||137||1,322 sq. ft||$119||$159,000|
|2001||124||1,223 sq. ft||$129||$158,250|
|2002||150||1,163 sq. ft||$153||$177,250|
|2003||154||1,270 sq. ft||$165||$209,475|
|2004||129||1,325 sq. ft||$211||$279,000|
|2005||111||1,176 sq. ft||$265||$312,000|
|2006||86||1,352 sq. ft||$288||$390,000|
|2007||59||1,226 sq. ft||$285||$350,000|
|2008||55||1,272 sq. ft||$232||$295,000|
|2009||54||1,303 sq. ft||$207||$270,000|
|2010||69||1,274 sq. ft||$196||$250,000|
|2011||56||1,270 sq. ft||$155||$196,500|
|2012||111||1,398 sq. ft||$158||$221,000|
|2013||96||1,403 sq. ft||$176||$211,500|
|2014||23||1,424 sq. ft||$198||$230,000|