Since the beginning of 2006 we´ve reported that, although the market figures for home sales have been off more than a third compared with the past few years, the buying activity is focused primarily on the upper end of the spectrum. When we look at luxury homes (those over $1,000,000), we see considerable relative strength. So far in 2006, eleven such homes have sold compared with an average of 8.5 through mid-March in recent years. With fourteen currently under contract, we´re well on track to exceed 2005´s record of 52 luxury home sales.

Inventory, however, is also relatively high with eighty-two million dollar homes now on the market. That abundance of supply is giving buyers some negotiation leverage. The median list price of luxury homes presently available is $1,650,000. The median sales price thus far, however, is only $1,225,000. In 2005 that figure was $1,250,000. On a price per square foot basis, too, we´ve seen some slippage, $306 up to this point, versus last year´s median of $327.

The upshot of all this is that we have a very healthy market for luxury homes. Buyers able to afford those homes are, indeed, appearing. They have plenty to choose from, however, and are increasingly discerning and in a position to bargain. Sellers would be well advised to price their homes realistically if they want their properties shown.

GREATER SEDONA MARKET UPDATE: Current Median prices:

Single Family Homes:
SOLD: 72 (since 1 Jan 2006); Median: $571,000; DOM: 84
ACTIVE: 289 (vs.175 in May 2005); Median List Price: $727,000; DOM: 75 Pending/Under Contract: 87

Condo/Townhomes:
SOLD: 17; Median: $340,000; DOM: 63.
ACTIVE: 42; Median List Price: $369,500; DOM: 52.

Vacant Residential Land:
SOLD: 26; Median: $467,500; DOM: 98.  
ACTIVE: 258 (vs.106 in May, 2005); Median List Price: $525,000; DOM: 75 Pending/Under Contract: 38

Roy E. Grimm, PhD, the broker/president of Russ Lyon/Sotheby’s Buyer Brokers Group of Sedona, is a Certified Luxury Homes Specialist and a member of Who´s Who in Luxury Real Estate. Natalie Kurz is the team statistician & Buyer Brokers´ Office Manager. Their office is in The Old Market Place (282-2757/800-282-2959).