What a difference a year makes. It's not 2005 anymore. Last year, at this time, the Sedona market was roaring. Inventories of homes and land were exceedingly scarce. Days on Market figures seemed to be blinks of an eye. Buyers flooded the market, bidding up prices relentlessly. This year the tide has turned in favor of the buyer. Inventories of single family homes have just set a record by topping 300. Lots and condos offerings are up sharply as well, as are Days on Market. Numbers of sales are way off 2005 figures (except for condos*), down 28% for homes and 57% for land. Comparing 2006 first quarter sales with those of 2003 -2005, we see home sales down 17% and land sales down 58%.

*[We'll devote a future full column to the complicated and contrarian Condo Market where prices, as well as inventories, are way up.]  

Median prices continue to rise for single family homes, but at a much slower pace. Through mid-April we've seen only a 3% increase over the median for all of 2005.  Essentially, that figure has been level since the fall of 2005. We even note a temporary dip in the past two weeks. A peek at the median list price of the pendings will show why we think the price dip is temporary.

Land sales continue to confound logic and the Law of Supply & Demand. The number of sales is off dramatically, inventories are soaring, Days on Market keep lengthening, yet prices are not showing many signs of relenting from their 2005 wild ride. The current median selling price of lots is already up 33% over the 2005 median. It's a slower market, but the focal point is still in high end sales. That phenomenon appears likely to continue. We are, however, seeing more inventory available in the range below $500,000 for the first time in quite a while. That should moderate the run-up in the median selling price a bit this year.

The good news for sellers is the strong figures for pending sales. Buyers, sensing bargains afoot in the short-term, are returning to the market. Single family homes, condos, and land sales are all picking up steam. We see this as an affirmation of the buyers' faith in the long-term prospects for robust value appreciation as well as the lure of the matchless quality of life here.

1st Quarter 2006
GREATER SEDONA MARKET: Numbers and Median Prices as of 31 March 2006:
Single Family Homes:
SOLD: 110 (vs.153, 1st Q. 2005); $560,250 - up 6% from $530,000 (the median for all of 2005); up 17% from $477,150 (the 1st Q. 2005 median); DOM (Days on Market): 82 - up from 66 on 31 Mar 05.
ACTIVE: 269 (vs.175 in May 2005); Median List Price: $729,000; DOM: 90.
PENDING/Under Contract: 88
Condo/Townhomes:
SOLD: 22 (vs. 18, 1st Q. 2005); $365,000 - up 13% from $323,000 (median for 2005); up 36% from $268,000 (1st Q. 2005); DOM: 58 - up from 21 on 31 Mar 05.
ACTIVE: 44; Median List Price: $396,000; DOM: 53.
PENDING/Under Contract: 14
Vacant Residential Land:
SOLD: 34 (vs.79, 1st Q. 2005); $500,000 - up 33% from $375,000 (median for 2005); up 67% from $299,000 (1st Q. 2005); DOM: 105, up from 87 on 31 Mar 05.  
ACTIVE: 229 (vs.106 in May 05); Median List Price: $499,900; DOM: 103
PENDING/Under Contract: 35

Current
GREATER SEDONA MARKET UPDATE:
Numbers & Median Prices as of mid-April 2006:
Single Family Homes:
SOLD: 116 (since 1 Jan 2006); Median: $546,250 - up 3% since 2005; DOM: 84
ACTIVE: 307* (vs.175 in May 2005); Median List Price: $729,000; DOM: 65
Pending/Under Contract: 89; Median List Price: $649,900; DOM: 151
Condo/Townhomes:
SOLD: 26; Median: $392,500; DOM: 62.
ACTIVE: 53; Median List Price: $370,000; DOM: 53
Pending/Under Contract: 12; Median List Price: $435,000; DOM: 34
Vacant Residential Land:
SOLD: 40; Median: $500,000; DOM: 101.  
ACTIVE: 266 (vs.106 in May, 2005); Median List Price: $499,250; DOM: 89
Pending/Under Contract: 44: Median List Price: $587,000; DOM: 72

Natalie Kurz and Roy Grimm represent BUYER BROKERS REALTY of SEDONA, Arizona's top Exclusive Buyer's Agency. Their office is in The Old Market Place (282-2757/800-282-2959). Email: Roy@SedonaRealEstate.com roy@sedonarealestate.com.  For access to ALL Sedona MLS listings, visit award-winning: www.SedonaRealEstate.com.