The best places to invest in Sedona depend on what you’re looking for. However, the most popular approach to investing in Sedona is investing in a luxurious vacation property and then turning it into a long-term home. 

Sedona has many advantages when it comes to real estate. Demand is high, it has room to grow, and its perks as a winter vacation destination are irrefutable. 

Record-low mortgage rates are also keeping demand consistent.

With resources such as vacation rental management companies in Sedona, even though you can never predict how a market will respond to fluctuations, Sedona seems like a safe bet. 

Where Are the Best Places to Invest In Sedona?

Is the Sedona Market Healthy?

There have been some changes in the real estate market over the past twenty years, and Sedona is a prime example of those changes.

Twenty years ago, buyers would go to Sedona asking for real estate agents to show them properties. That was before the internet took over. 

The internet shifted the buying conversation from, “hey, can you show me some properties you think fit my preferences,” to, “hey, I saw such and such property on the internet, can you show me those properties?” 

Now, after demand spiked and buyers had their pick of the litter, the supply is starting to dwindle and buyers are again having to rely on real estate agents to find properties based on their preferences.

Now, Sedona can be seen as a luxury market with buyers searching for homes well over the million dollar range.

The Buyers

Sedona is still a second-home market and many of the buyers hail from California looking for a vacation home that allows them to get away from the city.

Many of these buyers are also in their 50s and realizing they can work remotely. Additionally, a healthy number of young entrepreneurs are investing in homes. These indicators suggest the market is healthy with plenty of demand. 

The foreclosure alarm – the one that should have alerted everyone back in 2008 – also isn’t sounding. Combined with Sedona being a second-home market, there isn’t much market indication to suggest a housing bubble.  

Vacation Rentals

The skyrocketing housing prices in Sedona are largely due to the fierce competition for vacation rentals. Buyers are competing for these properties in the short-term with the idea of converting these homes to long-term investments.

Sales Have Cooled

Even though the median price of a single-family home in Sedona continues to set records, sales have cooled in the last 90-day period.

The sales cooling comes on the heels of the largest 12-month increase in sales ever. With the heated demand, residential inventory dropped six percent in the previous 90-days from September 2021. 

Still, buyers have to do their homework before they purchase land. Because there is such a buying frenzy, buyers aren’t receiving the necessary advice from their realtors to make an educated decision.

When buyers don’t receive adequate information, they often become disgruntled. 

Places to Invest in Sedona

West Sedona

West Sedona is a versatile community that offers elegant, luxurious homes unlike other areas that offer smaller, starter homes.

Located near State Route 89A, you will have access to local shops and entertainment as well as convenient access to medical facilities and schools. 

Village of Oak Creek

The Village of Oak Creek is an unincorporated area that was once known as Big Park. You have plenty of homes to choose from in this location and it includes some luxury properties.

It also houses the Sedona Golf Resort and Oak Creek Country Club, both 18-hole courses. For those looking to establish luxury condos, there are ample investment opportunities in the Village of Oak Creek.

For the golf lover, “The Village” is one of the most beloved golf courses in the area. 

Oak Creek Canyon

The high-desert, red rock area community in Sedona is Oak Creek Canyon. This area has perhaps the most natural beauty out of any neighborhood on this list.

The area is also home to the Ponderosa Pine forest and it is within the Coconino National Forest area. It has both vacation investment properties and full-time properties. Tucked into the woods, Oak Creek Canyon is an adorable place.

Uptown

Uptown Sedona sits at the base of Oak Creek Canyon and some of the oldest and more traditional homes are located in this area.

If you want to wake up each morning with stunning views of red rocks and impressive landscapes, Uptown might be the place for you.

It can be a little crowded given its location, but the demand brings about more restaurants, shopping, and entertainment options. The cherry on top is that Uptown houses the Sedona Art Center. 

Chapel

The Chapel and Little Horse Park are smaller Sedona neighborhoods brimming with personality. These are easily accessible locations and they are also less densely populated while offering incredible Red Rock views. 

Red Rock Loop

For those looking for a laid-back environment, Red Rock Loop is an ideal fit. It might be a bit further away from the beaten path, but it makes up for accessibility with privacy and space.

Buying luxurious properties here is easier than elsewhere in Sedona and a number of private estates also exist in the area.  

Key Takeaways

Sedona is a booming location for investment properties and full-time homes alike. Though recently sales have cooled, it is likely not an indicator of cooling demand since sales numbers have consistently reached highs. 

The most popular areas in Sedona are those that contain luxury properties and competition for these properties remains consistent.

Due to its beautiful landscape, room for development, and attractive vacation home potential, Sedona is one of the most popular places to invest in real estate in the country. 

Megan is an Australian Journalist and award-winning travel writer who has been blogging since 2007. Her husband Mike is the American naturalist and wildlife photographer behind Waking Up Wild; an online magazine dedicated to opening your eyes to the wonders of the wild & natural world.

Having visited 100+ countries across all seven continents, Megan’s travels focus on cultural immersion, authentic discovery and incredible journeys. She has a strong passion for ecotourism, and aims to promote responsible travel experiences.