Is the Sedona Luxury Residential Market Coming Back to Life?
By Elisa Andreis J.D.
Russ Lyon Sotheby’s International Realty of Sedona
Sedona AZ (June 21, 2013) – Let’s take a look at the Sedona luxury market in the context of the overall market by analyzing data on sale volume, price per square foot and days on market by price segment. Luxury homes in Sedona are defined as the $1M+ properties.
1. Sales Volume by price segment
In 2006 the $500K+ market represented 56% of sales and the $1M + market 12% of total sales. Today, lower priced homes no longer dominate the number of sales and the luxury market is regaining some of its lost momentum: up to the end of May 5.8% of homes sold in the $1M + segment and 25.5% in the $500K+ segment versus 3.8% and 20.6% respectively in 2012.
2. Price per square foot by price segment
Contrary to most markets, the price per square foot in the Sedona residential market increases with price. This applies to all price segments. While the lower priced segments command a higher price per square foot than a year ago, high end home prices have softened slightly.
This year to date (up to the end of May) the $1M+ segment sold on average at a 42% higher price per square foot ($328/sqft) than the $400K to $500K segment (231/sqft). Luxury homes are selling on average at prices per square foot that are 2.65 times higher than the low end of the market.
3. Days on market by price segment
Days on Market tracks the number of days a property is listed before it is sold. Up to the end of May this year homes in the $1M + range took nearly 21 months to sell, compared with an average of 6.5 months for the rest of the market, a reflection of a higher inventory. Combined with strong sales volume, the pressure on price should remain neutral.
For more information about Sedona Real Estate and to Search for properties, visit www.SedonaFineHome.com or call Elisa Andreis J.D. (928) 274 1521