There is no denying that in the last two years the price of a home in Sedona has experienced a
decrease just as homes everywhere have. However, the decline has not been nearly as severe as in places like Phoenix,
Las Vegas or Miami. Compared to Sedona’s median prices in 2006, February 2008 prices were down only 6.2%,
March 2008 prices were down 2.5%, and April 2008 were down 4.3%. Hardly worth waiting two years for,
if you were expecting a “bargain”. But that’s because Sedona is a special place with a special appeal. It doesn’t really
reflect the trends taking place in the rest of the country.
Interestingly enough, there actually is a “bargain” in the Sedona area that most people appear to have overlooked:
vacant land. Purchasing land is usually not predicated on an immediate need to have a roof over one’s head. It is generally
considered an investment in the future, with the obvious potential to reap a significant financial gain at a later date.
During these past two years there has been a steep drop in the price of land, signaling a buying opportunity that
doesn’t come along very often. Compared to Sedona’s 2006 median prices for vacant land, February 2008 prices were down 43%,
March were down 67%, and April 34%. How long these price decreases will last, no one can say, but for the astute investor
now may be the time to put a pencil to paper and determine if vacant land is the right kind of investment for you.
Remember, Sedona is a cluster of private neighborhoods land-locked on all sides by two million acres of Coconino
National Forest. The town has no room for further expansion. Yet looming on the immediate horizon is a demographic wave
of Baby Boomers about to turn their 401(k)s into solid IRA investments as they plan their retirement. It’s a wave that will
not soon subside because a decade later an even larger second contingent of Baby Boomers, presently in their early fifties,
will find themselves forced to bid up land prices even further because of the diminished supply available at that time.
Investing in vacant land may not be for everyone, but for anyone seeking a relatively safe haven, with a significant
potential for capital appreciation, investing in vacant land might be the ideal ticket. To find out more about Sedona land
values, please feel free to contact me, Lee Congdon. I will be only too happy to review your individual situation without
any obligation on your part.
You can reach me at 928-300-5050 or
E-mail me and tell me about your Northern Arizona real estate
needs.
