A quick glance at the statistics below is sufficient to see that, overall, Sedona's homes and land market remains in the doldrums. Not nearly as slow as the Phoenix area's, but still way off (about 25%) the normal sales figures for the past five years.  If reports issuing from the National Association of Realtors and other economic think-tanks can be relied on, we're not likely to see a rebound any time soon.

That's all the more reason to lift our eye brows at what's happening with luxury homes.  That market seems to be quite healthy. In fact, so far this year, there have been three more sales of homes over $1,000,000 than we saw at this point in 2005: 45 vs. 42. Days on Market is, however, a bit longer: 149 vs. 133 and inventory is high with 98 million-dollar-plus homes currently for sale. That's about a two year supply.

The Median Recorded Sales Price of such homes is actually slightly lower than last year at this time: $1,295,000 vs. $1,297,500, but so is this median size of the homes that were sold. With luxury homes, particularly, it's necessary to look at price per square foot to gauge the trend more accurately. Currently for million-dollar homes that have sold that figure is $366. Last September it was $342. So, in reality, we have a 7% increase in the past year.

It's instructive to also compare that figure with the cost per square foot of the current listings: $438. That's 20% higher than those that have actually sold.  That would lead us to believe that the median list price of the active listings, $1,537,500, should be closer to $1,300,000 by the time they sell.  Supporting that contention, the eight homes presently under contract have a median list price of $1,325,000 and a cost per square foot of $322.

By the way, another instructive point of comparison is homes that sold for less than a million. There the cost per square foot is $276. The median size of these homes is 1955 square feet versus 3535 for million-dollar plus residence.
Our conclusions: the luxury home market is showing surprising strength relative to the rest of the market, but sellers remain unrealistic in their list pricing. Buyers have an unprecedented number of homes from which to choose and getting the best value is still a high priority for them.

Numbers & Median Prices at the End of September 2006:

Single Family Homes:
# SOLD: Jan-Sept 2005: 466;
   Jan-Sept 2006: 309 - down 34%
Median Recorded Sales Price (Jan-Sept 2005): $525,000
Median Recorded Sales Price (Jan-Sept 2006): $600,000- up 14%
& up 13% from $530,000 since 1 Jan 2006;
Days on Market: 60 (Jan-Sept 2005); 85 (Jan-Sept 2006) - up 42%

ACTIVE: 399 (vs.175 in May 2005); Median List Price: $695,000-
down 5% from $729,000 since 1st Quarter 06;   DOM: 95
Pending/Under Contract: 41; Median List Price: $599,000 -
down 8% from $649,450 since 1st Q. 06;  DOM: 110
Vacant Residential Land:

# SOLD: Jan-Sept 05: 274;
               Jan-Sept 06:  102 - down 63%
MRSP (Jan-Sept 2005):  $360,000
MRSP (Jan-Sept 2006):  $512,500  - up 42%
& up 35% from $375,000 since Jan 2006;   DOM: 83  

ACTIVE: 342 (vs.106 in May 2005); Median List Price: $475,000 -
down 5% from $499,900 since 1st Q. 06;   DOM: 125
Pending/Under Contract: 11: Median List Price: $539,000 -
down 9% from $595,000 since 1st Q. 06;  DOM: 144

Here's the national news from Realty Times:
Here is a link to the "October Real Estate Update":

http://realtytimes.com/95/RoyEGrimmPhD

This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month's issue includes topics such as:

"Real Estate Outlook: Buyers Take Note";
"Tips for Selling in a Buyer's Market";
"Coping With A Changing Mortgage Market";
"Questions to Ask Before Buying a Condo";
"The One And Only AnnualCreditReport.com";

Plus a roundup of September real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

Best Regards,
Roy