In this season of Thanksgiving, many Sedonans are profoundly grateful for the abundant Grace in our lives – including being able to call Sedona home. We wax eloquent about the natural beauty of the place and its spiritual qualities, even as we complain about being stuck in traffic on Cook’s Hill during tourist season. Beneath all that, we often take for granted a precious quality of life in our sheltered sanctuary: freedom from fear about our personal safety. Many of us wouldn’t give a second thought to roaming the streets of Sedona late at night – which here is after 9:00 PM. Clearly that can no longer be said of most metropolitan centers around the country. Regardless of our respective political persuasions, who would put loved ones in harm’s way? So, it makes sense to seek refuge from crime, firestorms, earthquakes, tornados, floods, and the general stress of urban living.
That translates to significant continued migration to our red rock refuge, keeping the Sedona real estate market buoyed for years to come. These immigrants tend to be affluent and not easily fazed by our rising prices. Beyond that is the draw of Arizona’s being one of the most wealth-friendly states in the U.S.
MRSP 3rd quarter of 2020
Luxury homes average price per square foot
2020 – A Year for the Record Books
The frenetic market activity that started in June appears to be cooling some now. Is that a concern? The long-term answer is, no. Winter is typically the slowest time of the year for Sedona real estate, so a market pause shouldn’t come as a surprise nor foretell a dim future. Furthermore, the pace we saw this summer and fall is simply not sustainable indefinitely. So, a time-out is probably a healthy development as we take a deep breath and get ready for a robust spring season.
In the meantime, 2020, for all of its drama, will make the record books as one of the strongest real estate markets ever. Single-family residence sales went up 23 percent over 2019, exceeding 500 sales in the first ten months of 2020 versus 498 in the entire year of 2019. The median selling price rose 14 percent – to over $635,000. Inventory remains low; only 72 single-family homes on the market in late October, compared with 211 in 2019. On the other side of the equation, pending sales were 46% higher than in 2019.
Luxury homes sales outpaced 2019 by an astounding 73 percent – hitting over an unprecedented 90 sales, with still 40 sales pending in late October.
The Vacant Land market continued to come to life with sales 17 percent ahead of 2019’s. The median selling price moved up 12 percent with inventory down 25 percent.
The Townhome/condo sector saw a decline in the number of sales – down 18 percent, but sharp, 24 percent rise in their median selling price – both due, primarily, to a lack of inventory. That may be indicative of what is in store for the single-family home market.