Sedona Luxury Houses Market Update
After being the doldrums since mid-2007, the market for million dollar houses took off like a shot in the first half of 2011, only to sputter and peter out for the rest of the year. In 2012, the Sedona luxury market seemed to be following the same bust and boom pattern. Powerful start; summer stall. Come fall , however, this year is proving to be different. Were experiencing a sales surge in both the general Sedona real estate market and luxury houses. Even the empty land market seems to be kicking in.
With inventories on the decline in all sectors of the Sedona AZ Real Estate market, and sales humming, we are starting to see a gradual rise in prices that seems to be paralleling the national economy’s slow recovery. True bargains, nevertheless, still abound – for the moment. We just have to work harder to find them.
That’s particularly the case in the Sedona luxury market. The undeniable fact that the inventory of million buck houses is less than 1/2 what it was back in 2008 provides a challenge for the luxurious customer. However, as we learned by examining the price and sales histories of individual houses in the post-boom age, it isn’t that million buck houses have not sold well. They just have not been selling for a million dollars.
One definition of a luxury market is the top ten percent of sales. By that reckoning, so far in 2012, houses selling for $740,000 and above are luxury houses. That’s slightly less than it has been during the past 2 years. Back in 2007, though, the threshold for the top ten percent was $1,300,000 — hence a 43% drop from that time. The mean selling price of the luxurious group was $1,529,000 in 2007 compared to the prevailing median of $1,000,000. That’s down $25,000 from last year, but up $80,000 from 2010s $920,000. Although the entry point for the top ten percent is relatively low in 2012, the high end of the range shot up to $2,900,000.
In the crucial {average price|typical price|average price-tag / square foot class, after a top of $506 in 2006 for the top ten percent, we are at present at $294 per square foot up from last years $267, but still close to 2003 levels.
How is all that playing out in terms of the differential between Median Retail price and Recorded Selling Price? Oddly enough that leaped from 4% in 2011 to 14% in 2012, indicating either that sellers have begun to over-price their houses this year or customers have driven harder bargains. Most likely both.
All in all, 2012 Sedona Real Estate for luxury homes are stronger than they’ve been since 2008 and purchasers are still getting good deals.
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