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Toll Free: 1-800-282-2959
For Sedona Real Estate…
Go with the Trusted Experts:
Roy Grimm’s Buyer Brokers Team
Sedona Real Estate has been one of the hardest hit markets in the country. While that’s bad news for the Sedona Real Estate Seller, the times couldn’t be better for the Sedona Real Estate Buyer. At Russ Lyon – Sotheby’s Buyer Brokers Group, headed by Roy E. Grimm, Ph.D., we focus on getting our buyers the best deal possible, regardless of who the seller is or who the listing broker is. That’s our specialty and our promise to you. And, that’s one of the reasons Roy has been the top agent representing buyers of Sedona and Verde Valley real estate for the past three years. Founding member and past president of the elite Sedona Luxury Real Estate Professionals organization, Roy is the acknowledged expert on Sedona luxury homes and land. He knows how to get you the best deal possible on Sedona luxury real estate.
If you’re looking for a dream home in Sedona – which has been recognized as the most beautiful place to live in America, by USA Today – the time for smoking deals is here, now. Overall home prices have hit bottom and have started creeping back up. But, inventory is shrinking (down 45% in the last three years) and buyer activity has rebounded (numbers of home sales are up 80% from 2008 and have exceeded those of 2006 in 2010 and 2011). Median prices for Sedona homes have fallen back to 2003 levels and in some individual instances they hit price points that we haven’t seen since the late 1990′s.
While the rest of the Sedona home market has largely rallied, Sedona luxury home sales have lagged behind. We’ve seen some strong signs of life there this year, but that’s slowed down of late with all the concern over the deficit and the world economy. Through it all, though, we have been able to capitalize on the strong Buyer’s Market, by getting some great deals for our clients, saving hundreds of thousands of dollars off the original listing price – and in one case, over a million.
Yet the Long-term fundamentals of the Sedona Real Estate market are insulated from the next building boom for one reason. Sedona, set amidst 160,000 acres of Forest Service property has limited land available for development. We’re islands of private property surrounded by National Forest and there is no more room to expand. With these natural supply side barriers, the Sedona Real Estate buyer’s investment is much safer over the long term, and today can be called the perfect shelter from the storm in which to buy Sedona Real Estate. It is our view that Sedona Real Estate Prices will never again be as low as they are right now.
Luxury Market Update
November 2011
After languishing for the past three years, the market for homes selling for over a million dollars took off like a shot in the first half of 2011. Sales were so robust, even in the above-$2 million range, that it was starting to feel like the good ol’, pre-2008, days. Then, poof! Luxury home buyers, at mid-year, began hunkering down in the face of the chaos caused by the political absurdities of the threatened federal default and the international economic uncertainties that followed.
Sales of million dollar homes have limped along in the past three years at a pace about a third of that of the previous five years. So far in 2011 only sixteen sales have been in that range, compared with an average of thirty-six in the first nine months of 2004-2008.
Another accepted definition of the luxury market is the top 10% of sales. By that reckoning, so far in 2011, it translates to homes selling for $745,000 and above. That’s about the same as it was last year. Back in 2007, though, the entry point for the top 10% was $1,300,000 – so, a 43% drop from then. The median selling price of the luxury group was $1,529,000 in 2007 compared with the current median of $1,024,000. That’s up $100,000 from last year’s $920,000. Although the entry point for the top 10% is relatively low in 2011, the high end of the range shot up $900K to $2.6 million. That’s three sales above $2 million so far this year, versus none in 2010.
In the all-important price-per-square foot category, after a peak of $506 in 2006 for the top 10%, we are currently at $277 per square foot – up $10 from last year’s $267, but still close to 2003 levels.
Finally, when we look more closely at the thirty-one homes that make up the top 10% of sales as of 1 October, year over year, we find that 28 of them (90%) were originally listed at over $1,000,000 in 2010 versus 19 (61%) in 2011. Only half of those 28 actually sold in that price range in 2010. In 2011, however, 84% of the sold homes initially listed for over a million wound up selling in that range. Those figures indicate that sellers are being more realistic in their list prices this year. Consequently the average discount from list price to recorded selling price for luxury homes has dropped from 16% in 2010 to about 11% in 2011.
All in all, 2011 luxury home sales are still comfortably ahead of 2010’s, but that market, after an exuberant start, has been very quiet since mid-summer, with only one currently pending sale. It’s liable to stay that way until fears of a double-dip recession subside and some semblance of consumer confidence returns.
Here are some of the most beautiful homes in America — in the most beautiful place in America!
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