Sedona Market Analysis

Sedona Real Estate Market Analysis for 2011

The 2011 sales numbers in Sedona show a split market. 48.3% of the sales were under $300,000 and 87% below $499,000. Well priced properties under $500,000 are selling fairly quickly and the market in this segment is stabilizing and starting to look up.
At the same time, the luxury market is still lagging. The new luxury price point (top 10% of sales) is $725,000 for single family homes.
There is good news regarding foreclosure and short sales. At the end of 2011 only 5% of active home listings were foreclosures and only 19% short sales. The combined number of both used to be more than 40%.
Vacant land shows fairly steady on a low level.
Condos have taken a hit in 2011.

Over all: while interest for home loans is on a record low, qualifying for loans is difficult.

Most areas of the US report a steady rise in sales. Respected economists advice that now is a good time to invest in real estate.

Sales of single family homes:
2011 saw 387 home sales – slightly less than 407 in 2010. But while tax incentives were offered in 2010, they were not available in 2011.
Generally, sales are way up from the low of 227 in 2008.
The number of active listings – 301 – is exactly the same as at the end of 2010 and the lowest number in many years.
The average price per square foot of $161 is close to 2010’s $167. The price per square foot hit a low of $159 at the end of the second quarter and came back up to $161 towards the end of the year.
The median recorded sales price of $350,000 in 2011 is slightly lower than $365,000 in 2010.
With 37% of all sales, the number of foreclosures and short sales is down 19% from 2010 (44%). This number is expected to keep dropping, as fewer foreclosures and short sales are coming on the market. Presently only 24% of all active home listings are stressed properties.
An interesting development in Sedona: the prices in the Village of Oak Creek were 15% lower than in Sedona. In 2010 they were only 5% lower and in 2009 12%.

Luxury market:
The recognized starting point for luxury homes (top 10% of sales) is now $725,000 – it was $750,000 a year before. Originally it was $1,000,000+.

Like the year before, 17 homes sold over $1,000,000.

In 2010 we had no sales over $2,000,000. In 2011 three homes sold above that mark.

Altogether we had 40 home sales over $725,000 – slightly more than 35 in 2010.

The median price of homes selling higher than $1,000,000 was $1,440,000 and is up from 2010.
The median price per square foot of homes in that category is also slightly up - $296 in 2010 and $317 in 2011. But this can be contributed to the fact that several of the properties came with more than 5 acres of land and had a high land value.

Condos/Townhomes:
The number of condos/town homes sold was down from 69 in 2010 to 56 in 2011.
Some buyers would rather buy a low priced single family home than a condo/town home.

The 2010 average price per square foot of $196 dropped to $155 in 2011.

The luxury price point (top 10% of sales) of condos/town homes was $360,000.

Vacant land:
The number of sales was fairly stable in 2011. We saw 90 sales compared to 94 in 2009.

The median recorded sales price was $125,000 – 7.5% down from $135,000 in 2010.

We had 331 active listings at the end of 2011 – slightly more than 316 in 2010.

Sedona Market Update – 3rd Quarter of 2011

• Sales are steady, with prices still slightly dropping.
• Less inventory on the market.
• Significantly less foreclosures and short sales.
• Luxury home sales have slowed down.
• Land sales are slightly down.

Single family home sales: the number of sales has continuously gone up since the low of 176 sales at the end of September 2008. 308 sales this year are up 2 sales from 2010. It is encouraging given that there was a tax incentive last year, which was no longer available.
The median recorded sales price of $351,278 is 13.5% down from last year, but up 6.5% from the first half of 2011.
The average price per square foot of $161 is stable compared with $159 at the end of June 2011.
Inventory continues to drop: from 532 October 1st 2008 to 380 this year.
Significant drop in foreclosures and short sales: at this time only 4% (12) of the active listings are foreclosures and 6% (20) are short sales!

Luxury homes: after an encouraging first half of this year, sales have slowed down. It seems to be a reflection of the turbulences at the stock market and in our economy. Only 3 homes over $1,000,000 have sold in the last 3 months – 16 in all of 2011 so far.
In the range of $750,000-1,000,000, 14 homes were sold till 9/30/11. This adds up to a total of 30 luxury home sales in the first 3 quarters of this year.

Vacant land: 69 sales in the first 9 months are slightly down from 72 sales at the same time in 2010.
The median price of $125,000 is $10,000 lower than at the same time last year and stable compared with the first half of this year.
Amongst the 351 active listings are only 17 foreclosures and 7 short sales!

Sedona Market Update – 2nd Quarter of 2011

• Sales are steady and up with prices slightly dropping.
• Inventory continues to drop.
• Foreclosures and short sales are down.
• Luxury home sales are up.
• Land sales are steady with the median sales price slightly down.

Single family home sales: sales jumped from 146 in 09 to 219 in 10. 2011 shows 207 sales in the first 6 months. This is encouraging given that there was a tax incentive last year, which is no longer in place.
Median recorded sales price with $330,000 and the average price per square foot of $159 were down from $358,000 and $168 at the end of the first quarter.
Inventory continues dropping: from 517 active listings 6/30/08, to 397 at the same time in 09, to 362 in 10 and 327 this year.

Luxury homes: the sale of homes $1,000,000+ have nearly doubled – from 7 in 2010 to 13 in the first half of this year.
Inventory is down to 62 listings – the lowest in many years.
The current luxury price point (top 10% of single family home sales - one year back) is $750,000.
In the range of $750,000-1,000,000, 10 homes were sold till 6/30/11.
This adds up to a total of 17 luxury home sales in the first half of this year.
The average price per square foot was $293.43 and the median recorded sales price $1,125,000.

Vacant land: with 46 sales in the first 6 months, sales caught up with the 45 sales of 2010.
The median price is down from $135,000 at the end of last year to $125,000 at the end of the 2nd quarter.
Inventory has gone down from 413 in July of 09, to 403 July 10 to 340 this year.

Sedona Market Update – 1st Quarter of 2011

Sales remain strong. Prices are fluctuating slightly up and down from month to month, but at the end of the first quarter we are noting the same average prices as at the end of 2010.
• Encouraging developments in the luxury home market.
• Less land sales for a higher median sales price.

Single family home sales: 90 sales in the first quarter are slightly down from 99 sales at the same time last year. The median recorded sales price of $358,000 and the average price per square foot of $168 are exactly the same as the average prices for 2010.
Inventory has gone down continually from 486 active listings on 3/31/08, to 375 at the same time in 2010, to 338 on 3/31 this year.

Luxury homes: after a trying 2010 we are seeing encouraging signs in the luxury home market. This year we had 7 sales over $ 1,000,000 in the first 3 months, compared with only one sale in the same time last year.
While we did not have a single sale over $2,000,000 in all of 2010, already 2 sales in the first quarter of 2011 are above this mark.
It looks like luxury buyers are back and are taking advantage of the great values available.

In the range $720,000-1,000,000 we had 49 active listings on 3/31/11, one pending and 7 sales in 2011. The median sales price was $790,000 and the average price per square foot $192.28.

Vacant land: mixed news for land sales.
6 sales in the first 3 months of this year are clearly down from 20 sales in 2010.
At the same time the median price of $162,500 is up 20% from $135,000 at the end of 2010.
Inventory is staying down at 337 active listings – 403 available listed lots on 3/31/10 and 316 per 12/31/10.

Market Update per March 1st, 2011

With 43 sold homes in the first two months of the year, selling activity stays strong.
Prices are stabilizing: the price per square foot went slightly up from $171 in 2010 to $176 in 2011. At the same time we are seeing a drop in the median sales price per home from $377,000 last year, to $358,000 this year.
A new low in inventory – we had 298 active listings on March 1st, down from a high of 527 active homes.
At same time we had an encouraging 88 pending homes (82 at the same time last year and only 35 in 2009).

Positive sign in the luxury market: 5 homes sold above $1,000,000 in the first 2 months of the year. This is the highest number since 2007.

With 15 vacant land sales we are seeing the highest number of sales in the first two months since 2006.
Median sales price remains at $135,000.

Statistics for the first quarter soon to follow.

Sedona Real Estate Market Analysis for 2010

It’s been a year with ups and downs – strong sales in spring, slow in summer and increasing momentum in autumn. Altogether the signs are indicating a Real Estate market set for recovery.
Single family home sales being up to 414 in 2010, we are seeing numbers higher than 2006(!). For the first time in 5 years sales are exceeding the 400 mark (2008 saw as few as 227 sales). At the same time there is a record low of active listings - 301 at the end of 2010 compared with 525 in June of 08. Prices dropped slightly, due to the high number of foreclosures and short sales (44%).
Vacant land sales are stable.
2010 was not a good year for luxury home sales.

Over all: the market is developing balance and stability.

The economic cycle of Real Estate has been a leading indicator of financial crises and also a first sign for recovery. We might just be seeing a first sign of America’s economic recovery.
Very attractive prices, well below replacement cost, promise good appreciation in the future and invite home buyers and investors alike.

Many are worried about inflation, while our government supports the struggling economy. For a time of inflation, Real Estate and gold are considered some of the best investments.

It might be a good time to take advantage of the record low interest rates. Rates have already gone up slightly and there is talk about them going up further.

Other good signs: Jumbo loans (loans over $417,000) are back. This should help luxury sales. And January 2011 shows a record of 73 (!) pending sales – 15 in 12/08 and 44 in 12/09.

Sales of single family homes:
The number of residential sales is up 20% from 2009. With 414 sales we are exceeding the 400 mark for the first time in 5 years. Sales have nearly doubled since the low of 227 sales in 2008.
At the same time the median recorded sales price of $358,000 is down 20% from $398,000 in 2009.
The median price per square foot of $167 is down about 10% from $182 in 2009. These numbers are lower, mainly due to the high market share of foreclosure and short sales (44%), and the decrease in luxury sales.
These prices compare to 2003.

Significant: the number of active listings decreased another 11% and was down to 301 at the end of December (the high was in June of 08 with 527 active listings!)
At the end of 2010 only 14% of the active listings were foreclosures and short sales.

Luxury market:The recognized starting point for luxury homes (top 10% of sales) dropped to $720,000.

Only 17 sold homes over $1,000,000.

The median price of homes sold over $1,000,000 is down from $1,500,000 in 2009 to $1,200,000 in 2010.

The median price per square foot dropped over 13% from $341 in 2009 to $296 in 2010.

Upside: Jumbo loans ($417,000 +) with attractive interest rates are back. They were missing for several years.
2010 started with several sales over $1,000,000 indicating that luxury buyers are back in the market.

Condos/Townhomes:For the first time since 2006 we are seeing an increase in sales. With 69 units sold, we are up nearly 28% from the 54 units sold in 2010.

The 2009 average price per square foot of $207 dropped slightly to $196 in 2010.

20% of these sales were foreclosures or short sales.

Vacant land:Sales were stable in 2010. We saw 94 sales compared to 95 in 2009.

And so was the median recorded sales price. It remained at $135,000 – the same as last year.

The number of active listings has gone down further – from 446 at the end of 2008 to 335 in December of 09 to 316 per 12/31/2010.


Sedona Market Update – first 3 Quarters of 2010

The overall market seems to continue to stabilize in spite of a steady supply of foreclosures and short sales. The number of sales is up and inventory is staying down.

The luxury market is the exception. Sales are down and prices continue to drop.

Land sales are up compared with the low in 2009.

Single family home sales: With 307 sales in the first 9 months of this year we are up 24% compared to 248 sales at the same time in 2009.
The median recorded sales price of $385,000 is stable compared with the first half of 2010 and 4% down from September 30, 2009. This could be a reflection of the weak luxury market. The price per square foot of $176 is stable compared with $175 in the middle of the year and down 6% compared with 2009.
At the beginning of October we had 380 active listings. That is only 1% down from the same time last year but considerably lower than the peak of 525 active listings in June 2008.

Luxury homes: The luxury price point of the top 10% of sales is down to $750,000 (from $1,000,000). We had 35 sales in the first 3 quarters of 2010, which is down 12.5% from the 40 sales last year. The average price per square foot was $261 compared with $289 last year, while the median sales price dropped 9% from $988,950 in 2009 to $900,000 in 2010.
The inventory in the luxury range consisted of 133 active homes at the end of September. This is nearly a 4 years supply.
12 sales of homes over $1,000,000 is a new low.
Silver lining: jumbo loans (loans over $417,000) have just come back with interest rates below 4% in the 5 to 7 year fixed range. That makes the purchase of luxury homes more affordable.

Vacant land: with 72 sales in the first 9 months of this year, sales are up 20% compared with last year.
The Inventory is down 13% and the median sales price with $135,000 is up 11.5% compared to 2010 but down from the first half of this year ($160,000).

Sedona Market Update – first Half of 2010

The overall market seems to be stabilizing, with the exception of the luxury segment. We are still seeing an increase in the number of residential sales. Due to a steady supply of foreclosures and short sales, prices remain at their lowest since 2003. The good news is that they seem to be leveling out.

The number of luxury home sales is up from the first quarter of this year, but it is still down from the first half of 2009. Prices continue to drop.

Land sales continue strong.

Single family home sales: With 219 sales in the first half of this year we are up 50% from 146 sales at the same time in 2009.
The median recorded sales price of $385,000 is very close to what we saw at the end of the first quarter ($390,000) and 10% down from the first half of 2009 ($429,500). The price per square foot at $175 is stabilizing ($177 at the end of the first quarter).
Inventory is down at 362. At the end of June 2009 we had 397 active listings and 517 at the same time in 2008.
78 homes are pending.

Luxury homes: The price point of the top 10% sales (which defines a luxury home) is still down from $1,000,000 to approx. $750,000.
In the first half of this year 7 homes sold over $1,000,000. This is up from only 1 comparable sale in the first quarter, but still down 28% from 9 sales in the same time in 2009.
The median price of $1,130,000 is down 16.3% from last year ($1,350,000).
The average price per square foot of $255 is down 18.3% from
last year’s $312.

Vacant land: with 45 sales in the first half of this year, sales are up 36% from the 33 a year ago. The trend is still up but slowing down compared to the first quarter. The median sales price of $160,000 is 33% higher than a year ago but down from the $207,000 at the end of March. Inventory with 413 is slightly up compared with 403 active listings last year.
Close to 30% of the active listings are bank owned REOs or short-sales.

Sedona Market Update - first Quarter 2010

The signs are encouraging. In the first quarter of this year sales of single family homes have doubled compared with last year. Prices are still at their lowest level since 2003. Inventory is down and demand is up. But a steady supply of foreclosures and short sales is keeping the market at the present low level, as it forces regular sales to compete with their prices.

Luxury home sales are lagging behind.
Land sales are clearly picking up.

Single family home sales: With 99 sales in the first 3 months we are up 98% compared with the 50 sales in 2009.
The median recorded sales price of $390,000 is down 9% from the first quarter of last year ($427,000) and the average price per square foot is with $177 about 11% under the price at the same time of 2009.
Part of this drop is due to only one $1,000,000 + home selling (luxury sales bring up the average price per square foot).
Inventory is down at 375 compared with 459 at the end of March last year.
With 75 pending homes we are seeing the highest number at the end of a first quarter since March of 2006.

Luxury market: In the first quarter of this year only one $1,000,000 + home sold. The lowest number in the last 10 years.
At the same time we have 86 active listings in the $ million range and 6 pending homes at the beginning of April.
The price point of the top 10% sales (which is the luxury market) has come down from originally $1,000,000 + to $750,000.

Condos: 13 condos were sold in the first 3 months, compared with 96 active listings. 12 Condos were pending and the median sales price was $299,000.

Vacant Land: Land is on the up. Compared with 2009 sales have quadrupled. 5 sales in the first quarter of last year compared with 20 sales this year.
The median sales price was with $207,000 clearly higher the year 2009 ($135,000).
At the same time there are 403 active land listings and 14 pending.

Sedona Market Analysis 2009

The overall market has leveled out and is starting to sail in calmer waters. Prices are down to the level of 2003/04, but that makes it a great market for buyers. And buyers have started to show up and take advantage. Competition with foreclosures and short sales has brought prices down below re-build cost. That coupled with all time low interest rates is bringing buyers and investors back. Properties that are priced competitively are selling.

Sales of single family homes:
The number of residential sales has gone up for the first time since the record number of 599 sales in 2003. After a steady decline we hit rock bottom in 2008 with 227 sales. 2009 shows a jump of 52% (!) to 344 sales.

At the same time the median recorded sales price of $398,000 is down 17% from $480,000 in 2008.
The median price per square foot of $182 is down nearly 22% from $233 in 2008. During 2009 the median price per square foot remained steadily close to $190. These prices are comparable with prices in 2003/2004.

59% (202) of the single family home sales were traditional sales. 10% (36) were short sales and 31% (106) were bank-owned/foreclosures.

Encouraging: the number of active listings decreased by over 26% - from 459 at the end of 2008 to 338 on 12/31/09.

Luxury market (homes $1,000,000+):
While the overall number of single family home sales has jumped up, the number of luxury home sales decreased. While 25 luxury homes sold in Sedona in 2008, only 19 sold in 2009 (down 24%). Way down from our high of 55 sales in 2006 (65.45%!).
In the beginning of the real estate recession luxury home prices held firm, while prices in none-luxury homes declined to compete with foreclosures and short sales. At that time the only sign of a declining market for the luxury segment of the market where decreasing number of sales.

As we started to see short sales and foreclosures in this part of the market and due to the few sales, prices have started to drop significantly.

Statistically the number of active listings has come down from 93 at the end of 2008, to 85 on 31/12/09. But the reason is that a large number of former $1,000,000+-homes dropped their prices under the $1,000,000-mark.

The average price per square foot in 2009 was noted with $341. That seems fairly stable compared to $343 in 2008, but does not reflect the fact, that the buyers got more for their money: higher quality, newer homes, bigger views and more space.

At the end of 2009 only one home was pending.

Condos/Townhomes:
With 54 units sold in 2009 compared to 55 in 2008, the number of sales shows fairly stable. (The high was 154 sales in 2003.)

The average price per square foot of $232 in 2008 dropped 11% to $207 in 2009.

81% or 44 sales were traditional sales.
9 or 17% of the sales were foreclosures and only 1 sale was a short sale.

Vacant land:
After 5 years of declining sales numbers, the number of sales has jumped up 64% (!) from 58 sales in 2008 to 95 sales in 2009.

At the same time the median recorded sales price dropped from $300,000 in 2008 to $135,000 in 2009. A drop of 55%!
With prices back to the level of 2001, buying land and building is becoming interesting again.

And given the limited supply of land in Sedona - being an island surrounded by Forest Service - land is an excellent investment for investors that have cash to spare.

Overall: Arizona is one of the states with the highest growth rates. Recent demographic studies expect the population of Sedona to grow from 10,700 presently to 15,360 in the next 15 years. The projected numbers for the rest of the Verde Valley are even higher.

Sedona Market Update January - September 8, 2009

In short: The number of residential sales continues to pick up. Prices seem to have leveled out at a price point comparable to 2003/04. Part of this is due to the fact that 40% of the sales since January were foreclosures and short sales. This forces sellers to price competitively.
Inventory continues to decrease. In June of 08 we had 525 active residential listings. While we had 530 active listings on 9/1/08 we were down to 371 (30%!) at the beginning of September this year. A very encouraging sign.

Luxury home sales are still below last year’s sales.
Condo/Townhome sales are slowly picking up.
Vacant land sales are picking up in numbers while or because prices have dropped to a price level we have seen in 2001.

Sales of single family homes: with 207 sold homes, sales are up 36% from last year’s 152 sales in the same time period (January – August).

At the same time the median recorded sales price of $422,500 is down 14% from 8/31/08. The good news is that it has slightly recovered. It was down 17,50% at the end of June this year. (We hit the price bottom in January with $341,000.)
The reported median price per square foot with $192 is down 21% from 2008 – also a slight recovery from being down 26,50% at the end of June 09.
With 87 pending homes we are seeing another all time high (74 in June of 05 and 78 in April of 2009).
Encouraging: the number of available homes continues to decline – from 525 in June of 08, to 449 at the end of April 09 to 371 at the beginning of September 2009!

Luxury market: with 13 sales of homes over $1,000,000 we had fewer sales than in previous years (18 in the same time period in 08, 37 sales in 07). The average price/sq.ft. for luxury homes sold was down to $353 from $408 at the same time in 2008.

Condos/Townhomes: with 28 sales in the first half of 2009 we were slightly down from the 31 sales in the same time period of 2008 and the 33 in 2007. By the end of August 39 sales were recorded with an average price per square foot of $223 - slightly less than in 2008.

Vacant land sales: the median recorded sales price has dropped significantly from $345,000 in the first half of 2008 to $120,000 in the same time period in 2009! (A drop of 65%!) At the end of August it was $121,000.
After a several year long decline, we are seeing rising numbers of sales – 46 January -August 2009 compared to 37 in 2008. We are back to a price level comparable to 2001. Buying land and building might soon be interesting again.

Sedona with its unique beauty, great life style and limited supply of land promises strong appreciation in the future.

As the real estate market starts to recover nationwide we are expecting sales in Sedona to continue to accelerate. Buyers, who had to sell their home in another state to move, are starting to sell.

Financing proved difficult this last year. As a reaction to the bank and finance crises lenders swung from loose requirements to seemingly unnecessary conditions and restrictions. The same can be said for appraisals. Swinging the pendulum back to a sound middle would help sales and the further recovery of the real estate market.

After a long and extreme decline of real estate sales and values we have hit rock bottom and are poised for recovery.


Update July 09 / January – June 2009

In short: The number of residential sales continues to pick up. At the same time prices are still falling. Part of this is due to the fact that 38% of the sales since January were foreclosures and short sales. This forces sellers to price competitively.
Inventory continues to decrease. In June of 08 we had 525 active residential listings. This number dropped to 449 at the end of April and was down to 397(!) at the beginning of this month. A very encouraging sign.

Luxury home sales have picked up but are still below last year’s sales.
Condo/Townhome sales are only slowly picking up.
Vacant land sales are picking up in numbers while or because prices have dropped to a price level we have seen in 2001.

Sales of single family homes: with 146 sold homes, sales are up 29.20% from last year’s 114 sales in the same time period (January –June).

At the same time the median recorded sales price continued to drop 17.5% from $520.000 in 2008 to $429.500 in 2009. The reported median price per square foot with $188 is even down 26.5% from 2008.
With 80 pending homes we are seeing another all time high (74 in June of 05 and 78 in April of 2009).
Encouraging: the number of available homes continues to decline – from 525 in June of 08, to 449 at the end of April 09 to 397 at the beginning of July 2009!

Luxury market: with 9 sales of homes over $1,000,000 we had fewer sales than in previous years (13 in the same time period in 08, 30 sales in 07). At the same time there was a jump up from the 3 homes that were sold by the end of April 2009 (6 homes sold in the previous two months – 3 in the four months before!). The average price/sq.ft. for luxury homes sold was $348.

Condos/Townhomes: with 28 sales in the first half of 2009 we are down from the 31 sales in the same time period of 2008 and the 33 in 2007. But we there was a jump up from the 15 condo and townhome sales that were recorded till the end of April of this year! – The average price per square foot of $225 is down from $240 in 08 but up from $209 at the end of April 2009.

Vacant land sales: The median recorded sales price has dropped significantly from $345,000 in the first half of 2008 to $120,000 in the same time period in 2009! (A drop of 65%!)
After a several year long decline, we are seeing for the first time a rising number of sales – 33 in the first half of 2009 compared to 29 in 2008. (At the end of April we had only 12 recorded sales. This number nearly tripled in the last two months!) We are back to a price level comparable to 2001. Buying land and building might soon be interesting again.

Sedona Real Estate Market Analysis - April 2009

Dear Neighbors,

What a year! The economy and the finance- and investment markets have been shaken up and so have the Real Estate markets. Sedona is no exception.

Between 1998 and 2002 the number of single family homes sold in Sedona rose continuously from 403 in 1998 to 520 in 2002. In 2003 the number of sales reached a peak of 599 homes sold with an average price of $168 per square foot. (The price per square foot includes the land.)
In 2004 and 2005 the number of sales stayed high with 591 and 582 sales, while the average price per square foot rose from $195 in 2004 to $248 in 2005.
Interestingly the price per square foot of sold homes continued to climb to a record high of $284 in 2006 while the number of sales dropped to 386.This number steadily declined to 254 sales of single family homes in 2007 and 227 in 2008 (60+% down from the peak years of 2003 – 2005!)
The average price per square foot dropped at the same time from $270 in 2007 to $233 in 2008. And it looks like we hit rock bottom at the end of last year.

In spite of the high inventory – 459 active listings on 3/31/09 (down from 517 on 7/1/08) – and more foreclosures and short sales coming into the market, we are seeing positive signs: rising sales in California, surging sales in the devastated Phoenix market as well as a rising number of sales in Sedona.

While we saw 45 sales of single family homes in the first quarter of 2008, there were 50 sales in 2009. At the same time the price per square foot has continued to decline to $208, a price comparable to 2004 and 2005 before the market sky-rocketed.

With 43 pending homes at the end of March we are seeing a number higher than 2006 before the market crumbled down and about three times as many as in December 08 (15 pending homes). An encouraging sign.
More sales are the first step to stabilizing the Real Estate market by absorbing the high inventory. Incredible deals paired with historic low interest rates seem to start pulling buyers and investors off the fence.

Interestingly only 3 of the 50 homes sold in the first quarter of 2009 sold over $1 Million and 47 sold under. The market seems to be picking up in the single family homes under $1 Million while the luxury market is still slow (3 sales in the first quarter of 2009 compared with 5 in the same time of 2008 and a median sales price of $1,348,500 this year compared with $1,600,000 last year).
Part of this can be contributed to the fact that prices have dropped so much, that a number Million $ homes have dropped below the $1 Million mark. –

Vacant land is quite a different story. With homes priced so low that it is not possible to build a home any where near the prices we are seeing in residential sales and the fact that there are hardly any land loan programs out there at this time, land sales have dropped to a low of 5 sales in the first quarter of this year compared with 13 sales in 2008, 9 in 2007, 21 in 2006, 17 in 2005 and 28 in 2004. The median sales price in the first quarter of 2009 was $225,000 compared with $390,000 in 2006.

This is one way of looking at it. On the other hand incredible land deals are to be had if somebody is able to buy with cash. And given our limited supply of land (being an island in the middle of National Forest) good appreciation can be expected in the future. –

Condo and Townhome prices and sales are still down. The median recorded sales price in 2008 was $295,000 which compares to sales in 2004 and 2005 ($279,000 in 2004 and $312,000 in 2005).

With 55 sales in 2008 we are seeing a record low. (59 sales in 2007, 86 sales in 2006, 111 sales in 2005, 129 sales in 2004, 154 sales in 2003, 150 sales in 2002 and 134 sales in 1997).

The average price per square foot of $225 is close to the prices we saw in 2004, when the average price per square foot of Condos and Townhomes was $211.
Condos and Townhomes are more often than not bought as a second home or holiday get-away. In an economically challenged time many potential buyers are holding off on spending money on a second home. On the other hand it is a good time to get an amazing deal. –

The Sedona Real Estate market has either hit its bottom or is very close to it. Many available listings in all categories do not reflect the value of the property anymore but how desperate the owner or the bank is to sell it. With interest rates at an historic low it is an investor’s paradise and the right time to buy. Investors understand that and are starting to come back into the market.

Many who have lost money in the stock market are now starting to think how to gain back their losses. And Real Estate has always been a good investment in uncertain times.

Arizona is the state with the highest growth rate. And Sedona with its unique beauty, great lifestyle and limited supply of land promises good and strong appreciation in the future. Once the Real Estate market nationwide starts moving, we will see sales in Sedona strongly accelerating, as many are waiting to buy in Sedona but cannot sell their homes at the present time.

If you have any questions or are interested in learning more about the Sedona Real Estate market and its current opportunities, just call me at (928) 300-6567 or send me an email at gilasedona@aol.com

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Sedona Arizona Real Estate Agent Gila Hager-Sherman has 27 years of experience in buying, selling, developing, managing and renovating residential, commercial and investment properties.