Sedona Land Market
SEDONA VACANT RESIDENTIAL LOTS
As Sedona housing prices soared to unprecedented heights in 2020-2022, the bright spot for buyers has been the Vacant Land Sector. Back in 2006, the Median Recorded Selling Price for residential lots in Sedona was $519,000. That started coming back to earth in the first half of 2007 and had plummeted to $115,000 by 2011. At the end 2022 that figure stood at $300,000 – a marked rebound from 2011 but far short of 2006’s $519,000.
In 2021,with existing home inventory drying up, many prospective buyers decided to build what they really wanted and vacant land sales boomed - tripling the number of sales in 2020. Since May 2022, however, we’ve seen a massive decline in the both housing and land sales. The inventory for homes in December 2022 was triple that of March 2022. Not so, though, for land. In fact, Active Listings are half of what they were two years ago.
That presents a strong buying opportunity for astute investors. Expect the price point to resume its upward trend as inventory continues to dwindle. Eventually, as the non-renewable supply of vacant land dwindles, we'll see prices sky-rocket from these bargain levels. Keep in mind that vacant land is a non-renewable resource. Sedona is completely surrounded by U.S. National Forest and almost all the land that can be developed pretty much has been.
Meanwhile, we are still seeing Sedona luxury lots selling at huge discounts compared with the prices they fetched in 2006. At some high-end gated communities, you can still find luxury lots starting around $300,000. Back in 2006 those would have been priced at $700,000 or $800,000. More commonly, though, you can expect to pay $400,000 to $600,000 for a really good luxury lot and well over a million or two for something truly extraordinary.