Sedona Real Estate Market Report – May 2016 Update

After an exceptionally languid 1st Quarter, the Sedona real estate market started coming out of its slumbers in April. Perhaps all those February and March days in the 70’s caused some spring fever. Perhaps it really was the often blustery weather we had in April and even in May that awakened buyers and zipped a bit of vitality even into some of this year’s more lackluster Sedona real estate sectors. Whatever the cause, while vacant land and luxury homes aren’t quite yet close to booming, they have shown signs of life, as have condos and townhomes.

The stalwart of the market, the Single Family Homes Sector, is running a bit behind 2015 in numbers of sales at the moment – down about 7.5% currently (123 vs. 133). That sector, should, however, see something of a growth spurt by the end of June thanks to a remarkable 33% jump in Pending Sales since the end of the 1st Quarter. It’s up by about the same figure over Mid-May 2015 (85 vs. 64).


Sedona home sales year to date


Jump in pending sales since end of 1st quarter

Single Family Home M.R.S.P. at $451K – Up 3% vs. 2015

Single Family Home price levels are showing modest, but steady, growth over 2015, with the Median Recorded Selling Price rising roughly 3% to $451,000 vs. $437,000, last May. The Average Cost Per Square Foot of the homes that have sold is presently $224. That’s up 3% over last May’s $218.

Completed sales of homes over a million dollars have been stuck in the mud for the past couple of months at only five closings vs. fourteen in May 2015. Fresh wind seems to be blowing there, though, with a nine more now in the Pending Sale pipeline. Luxury home buyers are starting to show up again, so there’s hope for new life in that market that has languished since last summer. A lot of bargain shopping going on these days in that market given its softness for the better part of a year.

With Vacant Land it’s a similar tale of dismal closed sales numbers – down 31% from last year’s depressed results. But, that’s an improvement over 1st Quarter, when sales were half of what they were last year. Again, though, there are some flashes of hopeful signs with pendings popping. Right now there have been only 29 land sales, but there were also 20 more sales pending – twice as many as last year and the most in at least five years. That’s hardly enough to end the drought, but at least it’s movement in the right direction for a re-assuring change. And, for a change there’s been positive movement in prices. The Median Recorded Selling Price is now $145,000 vs. $140,000 last May.

Luxury home buyers are starting to show up again, so there’s hope for new life in that market that has languished since last summer.

Condo and townhomes were hit pretty hard in the 1st Quarter of 2016, with sales down 44 % from 2015. Now they’re “only” down 24%. Average prices per square foot generally have been flat since last year, but the MRSP is down 20%. Nevertheless, we see spots, like the Nepenthe Townhomes, in which sales and prices are picking up markedly of late.

So, we do seem to be seeing a hopeful pattern of recent relatively brisk activity, pretty much in all sectors of the market. Luxury Homes, Condo/Townhomes, and especially Vacant Land, have all seen precipitous falls from the strength they were showing just a couple of years ago. But, clearly they’re climbing back.