Sedona

Sedona is a small town in Arizona which was called most beautiful place in the United States on different occasions. (yahoo, forbes, etc.) Well let's take a look at home and land prices over there:
(difference = year over year)
1. Homes Above the $1,000,000
Median Price rose 9%Median Price now $1,405,000
2 year inventory

2. Vacant Land - SEDONA
Median Price has dropped by 42%
Median Price now $357,000
2 year supply of inventory

3. CONDOS - SEDONA
PRICES DROPPED BY 18%MEDIAN PRICE - $235,000
13 MONTH ABSORPTION RATE

It looks like land and home prices DO go down... even in the most beautiful place in the USA, the supply and demand theorema holds.