Keeping the perspective that 2018 was a record setting year for home sales of all types, we’re seeing wildly mixed results at the mid-point of this year. A significant retreat in the general Single-Family Residence sector. Booming Luxury Home and Condo/Townhome Markets. And, flailing Vacant Land sales.
Single-Family Residence sales are down 13% compared with Mid-Year 2018. To some extent, credit for the leap in 2018 homes sales can be given to exceptionally high demand for vacation rental properties last year. Though still significant, that demand has tailed off noticeably this year. In any case, the Median Recorded Sales Price of homes is $555,000. That’s down 4% from $578,250. Oddly, though, the Average Price per Square Foot went up 12% to $280. Some of that can be attributed to the sales range being skewed toward the high end with all the luxury home sales coming through.
Luxury homes sold year to date
SFH average price per square foot
Luxury home sales are strong
For homes above $1,000,000, sales have been vastly stronger. Twenty-nine had sold by the end of June (31 now) versus twenty-seven last year. Keep in mind that 2018 saw a record set for luxury homes, the current pace is most impressive. The numbers have been boosted a bit by a relatively new entry into both the luxury home and townhome market. Beyond the relatively small number of private resale homes there, the Seven Canyons Golf Club/Resort is building about twenty-eight single-family residences and the same number of luxury townhomes. Beyond that, their satellite development off Red Rock Loop Road, Sedona Ranch on Oak Creek, is offering a number of luxury homesites and models. Of the sixty-six Active luxury home listings currently available, four are at Seven Canyons and four are at Sedona Ranch – with more on the way. This year there have been two home sales at Sedona Ranch and one at Seven Canyons. Despite booming sales in the sector, the surprise is that prices have not seemed to move up at all – at least for the homes that have sold. The Average $/Sq. Ft 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 price range. So, some of the best buys in Sedona real estate are in the luxury market.
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 price range. So, some of the best buys in Sedona real estate are in the luxury market.
Another three townhomes at Seven Canyons have sold, all well above one million dollars. Townhomes have become a hot item with sales up over 11% even though the MRSP is up 13% (to $334,000) and the inventory of Actives is at an all time low: seventeen at the moment. Six of those are at Seven Canyons, three are in the gated Cottages at Coffee Pot – all the in the $900,000 range. Only one medium range townhome is presently on the market in the City of Sedona. The rest are in the Village of Oak Creek.
Alas, the long-suffering Vacant Land Market continues to struggle. Sales are down 21% over 2018. One bit of good news, however, is that the MRSP is finally up 13% to $170,000. But, the average time on market for the sales is 403 days. Observers are blaming a significant leap in building costs – labor and materials – and increasing City and County impact and building fees. Nevertheless, inevitably that market will take off as vacant land disappears. But, who knows when? In any case, we are now seeing excellent opportunities for prospective buyers of homes and land.