A client who has been looking for a vacant lot in Sedona recently emailed to say that she thought prices were coming down, and cited two lots that had reduced their list prices. But, in fact, prices are still going up. In the past two years, the median sales price of a vacant lot in Sedona has gone from $167,500 to $250,000...an increase of 49%. The rate of increase is slowing, but prices are still climbing. What has happened is that land is in demand because of the scarcity of homes for sale, and prices no longer seem fully dependent on comparable sales. We have gone to the true definition of market value, which is what a willing buyer will pay to a willing seller. Some sellers want to take advantage of this situation, but still manage to price their property above what any willing buyer will pay. That's when they may have to reduce the asking price, which was what happened with the properties mentioned above.