Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Is the Flagstaff Market Slowing Down? Bidding Wars Begin To Cool
The real estate market remains hot for sellers as we approach the midpoint of summer. Prices are still rising, and home seller expectations are sky-high. 24% of home sellers expect to get more than their asking price when all is said and done. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The Existing-Home Sales Expand 1.4% in June breaking four consecutive months of decline while Greater Flagstaff's June housing sales jump 32% vs the previous month. Flagstaff home sales posted a 9.7% decline year-over-year with 214 units sold vs the same period last year according to data from the Northern Arizona Multiple Listing Service (NAAR). A year ago, Flagstaff home sales saw a historic turnaround as stay at home orders around the country were lifted.
The chief economist at the NAR, Lawrence Yun, had this to say: "Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic."
Demand remains strong from first-time homebuyers, year-round residents, second home/move-up buyers and NAU students competing for affordable housing.
This June we sold 13 homes in Flagstaff valued at around $6.9M. Big thanks to our clients!
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 103.8%."
List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property. High demand & low inventory caused the median sold price in June to increase 27% year over year to $601,620, a new monthly high.
Even after more than a year in our frenzied market, home prices continue to soar, which is excellent news for those who own new and existing homes in our marketplace.
Realtor.com's Lawrence Yun also predicted home prices are in no danger of a decline due to tight inventory conditions, but expect prices to appreciate at a slower pace by the end of the year..
June 2021 Flagstaff Market Watch Summary
Total Home Sales - 214 homes, down 9.7% vs June 2020.
Median Sale Price - $601,620, up 26.9% vs June 2020, highest in more than a decade
Mortgage rates - A 30-year fixed-rate mortgage dropped to an average of 2.93% for the week ending June 17 — down from 2.96% last week, giving some borrowers another shot at sub-3% rates.
CDOM The acronym CDOM (Cumulative Days on Market) is used by the Flagstaff MLS to describe how many days a property has been available for sale. A property has to be off the MLS for at least 90 days for the CDOM to restart, even if it is listed by a different agent. We report the average days on market for properties sold based on CDOM.
The number of days a home sits on the market can tell us a lot about pricing. A high CDOM is commonly a strong indicator that the home is overpriced.
FLAGSTAFF'S PRICIEST HOMES SOLD in JUNE 2021
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in June was a $2,850,000 luxurious four-bedroom Lockett Ranches home on 3 Heavily Treed Acres Backing National Forest Service Land
- The highest-priced Flagstaff townhome sale was a $555,000 remodeled two-bedroom SINGLE LEVEL Walnut Canyon Village Townhome on the greenbelt with MOUNTAIN VIEWS. This home is in the Continental Country Club area.
- The highest-priced Flagstaff condo sale last month was a $460,000 completely remodeled 3-bedroom unit in Flagstaff Ranch next to the Flagstaff Ranch golf course as well as the forest
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in JUNE 2021
Photo courtesy of Realty One Group, Mountain Desert
- The lowest-priced single-family Flagstaff home that sold in June was a $240,000 3-bedroom single family residence in the Leupp/Winona area
- The lowest-priced Flagstaff townhome sold was a $255,000 - 2 bedroom 1.5 bath Sunnyside home. One bedroom has a balcony on the second floor for storage or a place to sit outside with views of Mt. Elden.
- The lowest-priced Flagstaff condo that sold was a $192,200 - 1 bedroom condo in the Timberline Place community. Community amenities include the clubhouse, indoor basketball and volleyball courts, fitness room, jacuzzi, sauna ,yoga studio, BBQ area, swimming pool & outdoor fireplace.
Flagstaff Home Buyer Advice
Mortgage interest rates have dipped just below 3% once again. The average for a 30-year fixed-rate mortgage now sits at 2.98%.
The week prior, rates jumped back up above 3%. This was the first time in 10 weeks that rates had risen above 3%.
The news of rates rising above 3% triggered a pretty significant drop in mortgage applications. The Mortgage Bankers Association reported that they dropped by 6.9% last week. That’s their lowest level in almost a year and a half. There were declines in both refinance and purchase applications.
The drop in purchase applications caused them to hit their lowest level since May 2020. Buyers are having difficulties finding affordable homes in a housing market with critically low inventory.
Even if rates jump back up over 3%, mortgage rates will still be at some of the lowest levels in history. Homeowners can save hundreds of dollars per month by refinancing, and buyers can still lock in a very attractive 30-year fixed rate.
Hoping for rates to drop even lower is a big gamble.
As the economy recovers from COVID, many experts (including Freddie Mac’s chief economist) predict that rates will gradually rise during the back half of 2021. If buying or refinancing is in your plans for the summer, it’s time to start the process now and lock in that rate while you can.
If buying a home is in your plans this summer, you can get a jump on the summer market by taking a look at the homes that are available in Northern Arizona right now.
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Flagstaff Home Seller Advice
The Flagstaff real estate market has softened a tad. Homes are still selling FAST. We were getting 10 offers on each homelast month, now it is more like 2 or 3.
53% of sellers expect that they’ll get at least their asking price once they put a home on the market, according to a recent survey by Realtor.com. Why do prices continue to rise, and how much longer will this trend last?
Even with an uptick in inventory, the market may continue at its breakneck pace because...
More homes were listed in Northern Arizona in June, but prices still hit all-time highs. We saw a needed influx of inventory over the past month. New listings increased by 13.2% in June vs May, and they’re up by 1.9% for the year, by 29 homes. This jump is not significant, and the overall number of homes for sale is still down 45% year over year.
Since we have far fewer homes for sale compared to last year, prices have seen a boost. The median list price for all properties in the Northern Arizona MLS is up and now sits at $699,000.
“More homeowners are deciding to put their homes on the market, encouraged by vaccines, a stronger economy, and low mortgage rates,” says Ratiu. “What this means is buyers will have more choices at more affordable prices.” These numbers are all encouraging for homeowners, but some are still hesitant to enter the market since...
Sellers need a moving plan from the start.
While a home is going to sell pretty quickly in today’s market, you’re going to need a plan for buying. Stephanie Ruhle, NBC News senior business correspondent, said “It is very possible that your home will sell quickly, and you don't want to be crashing in a hotel while you compete for a new place.”
Some sellers are negotiating rent-back agreements with buyers that allow them extra time for their home search. Others are finding temporary housing or moving in with relatives during the buying process. Every situation is different, but just know that you do have options to help you reach your goals.
What does all of this mean for you? As long as demand remains high and inventory stays relatively low, homeowners are in a great position to sell. Quick sales with multiple offers continue to be more of the norm than the exception.
While mortgage rates remain low for now, there’s a good chance that we’ll see an uptick in the coming months. Leonard Kiefer, deputy chief economist for Freddie Mac, expects these historically low rates to stay at least through the summer.
If you're curious about what your home is worth right now, you can use our home value calculator, which is based on recent Northern Arizona MLS sales. Click the image below then enter your address to find out what your home is currently worth.
We at The Kelly Broaddus Team with eXp Realty know that the only result that ultimately matters is that your home gets sold — and sold for the right amount. Satisfied clients say it all. Check out our 5 Star Reviews.
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