Sedona Market Update Jan 2022 (2021 Recap)

What a wild ride for the Sedona Real Estate market in 2020-2021. We finally had to retire the word “unprecedented” due to overuse. The market recovered from Covid in the late spring of 2020 and the second half of the year built incredible momentum that carried through to mid-year 2021. Sputtering a bit in summer and early fall, the housing market appeared to finally have run out of gas. But, in October it revved up once more and finished the year strong, settling a number of new records in the process.

The final total of Single-family Residence sales fell a bit shy of 2020’s all-time record of 631. 2021 came in at 623. But, the Median Recorded Sales Price jumped 35%, from $650,000 to $875,000. There were no distressed sales (foreclosures or short-sales) for the year. The Sales-to-List Price Ratio came in at 101% And, Days-On-Market dropped from 151 to 85. All “unprecedented” numbers. Lots of happy sellers.

$875,000

SFH Median Recorded Sales Price

101%

Sales-to-List Price Ratio

Million dollar market

Even with something of a slowdown in homes sales in the second half of the year, the median selling price rose $25,000 from July to December. Blame that on extremely low and diminishing supply. Typically, over 200 in years past, the inventory (Supply) of Single-family Residences stayed less than 50 for most of 2021 and totaled 25 on December 31st while Pending Sales (evidence of Demand) remained above normal. As a significant aside, 20 of those 25 Active Listings were homes over $1 million; 80%!

For record setting, nothing quite compares to the Luxury Home Sector. Real estate professionals were stunned last year when we saw 120 single-family homes sell for over $1 million – plus 11 townhomes. We had been impressed in in 2018 and 2019 when we saw sales in the fifties, since the average for the previous five years was 30. So, 120 was astonishing. But, wait; 2021 blew in with an off-the-charts, 227 plus 9 townhomes. Those numbers appear poised to keep rolling up since there were 37 Pending Sales on the 1st of 2022.

View Historical Sedona Market Statistics Here

 

The Average Price per Square Foot of those luxury homes jumped 27% from $392 to $497. With the short supply of Active Listings and their imposing Average $/Square Foot of $643, it would seem safe to assume that we’ll see a further escalation of the luxury Median Recorded Sales Price in 2022.

The usually quirky Condo/Townhome Sector did not disappoint in 2021. Sales increased 18% over 2020 and the MRSP rose 30% to $498,000 and an Average $/Square Foot of $370. Days-On-Market were a mere 79 and the Sale-to-List Price Ratio was an impressive 102%. Currently there are only 7 Active Listings and 5 Pending Sales.

The Vacant Land Sector enjoyed a phenomenal first half of the year – its 223 sales tripled 2020’s showing and the MRSP jumped 25%. The second half of 2021, saw a significant stall, however, with only 90 sales and the MRSP remained constant at $250,000 through the end of the year. Much of that seemed to have to do with huge jumps in construction costs. As supply chain woes ease, it’s hoped that costs will deescalate and the land market will revive once more.

Stay tuned for next month’s report when we reveal what sages predict will happen with the 2022 market.