Sedona Land Market
News from the long-suffering Vacant Land Sector has been grim, if you’ll pardon the expression, since the market crash over a decade ago. Despite the various housing sectors all gaining strength land continued to flounder. In the 1st Quarter of 2017, the Median Recorded Selling Price (MRSP) for land hit $108,000, the lowest that we’ve seen this century. Fortunately, by the end of the 1st Quarter 2020, the MRSP had worked it’s way up to $176,000.
So, there were some signs of hope until the CoVid-19 crisis caught up with Sedona. It’ll be a set back for a while, but eventually we’ll get back on track to a healthier land market.
The most cited reason for drag on the market, until recently, has been that it’s generally less expensive to buy an existing home than to buy land and build. That equation is starting to change. Rising prices, added to an historically low inventory of homes, have pushed more prospective buyers toward the buy-land strategy in which they can build to their tastes rather than settling for a pre-existing home that doesn’t quite fit their needs.
Even for buyers who aren’t ready to build yet, there is a growing realization that, plentiful as it may seem now, vacant land in Sedona is a non-renewable resource. Bounded as we are by National Forest, the supply will inevitably diminish to a point at which prices will spike dramatically. As that dawns on more prospective buyers, the land market come-back will gain momentum.