Sept. 28, 2020
Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
August Flagstaff Home Sales Sizzle Amid Low Inventory, Rising Prices
Despite the season change, the housing market continues to sizzle. According to the most recent National Association of Realtors Housing Report, August was a record-setting month for home sales. Fall is typically the time of year when we start talking about the housing market taking a breather, but it's still showing no sign of cooling off. Here's the latest update on Flagstaff real estate.
FLAGSTAFF HOME SALES
The US existing home sales jump to near 14-year high in August marking three consecutive months of significant gains. Greater Flagstaff's housing sales have slowed down by 12% compared to last month, however, it rose 24% from the same period last year. There were 259 houses sold in August, the most in 14 years. A big contributor to the strength in our real estate market is mortgage rates which recently hit all-time lows.
In the month of August, our kelly Broaddus Real Estate Advisors team hit a record of 13 homes, selling over $4M of Flagstaff and nearby area real estate.
FLAGSTAFF MEDIAN HOME PRICE
"The median US existing-home price2 for all housing types in August was $310,600, up 11.4% from August 2019 ($278,800), as prices rose in every region. August’s national price increase marks 102 straight months of year-over-year gains." - NAR
Flagstaff home prices have gone up to $505,000 from July 2020 when the median sold price of $480,000. This is 28% higher from a year ago with the median sale price coming in at $394K, setting a new August monthly price high.
DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE
Aug 2020 Flagstaff Market Watch Summary
Total Single Family Home Sales - 184 homes, up 44% vs Aug 2019.
Median Home Price - $505,000, up 28% vs Aug 2019
Average Mortgage rates - 30-year fixed-rate mortgage rose 3.13% on Aug 31. Mortgage rates change daily but they remain very competitive and are worth locking in.
Longest days on market (SF): 5,253 This is a 5-bedroom luxury custom new build home in Flagstaff Ranch's Aspen Shadows. Property owners in Flagstaff Ranch must purchase either a Golf ($60,000) or Social Membership($30,000).
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 AUG 2020
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in Aug was a $3,700,000 5-bedroom luxury home on 1.21 acres in Pine Canyon. This private enclave boasts a 10-car garage soaring ceilings, extensive glass, and a flowing stream that is a showpiece from the dining, great room, and master quarters.
- The highest-priced Flagstaff townhome sale was a $1,050,000 3-bedroom luxury Mountain Villas townhome in Pine Canyon
- The highest-priced Flagstaff condo sale was a $459,000 newer two-bedroom unit at Dale Condominiums in Flagstaff Townsite. Located in the heart of downtown with views of the town's most historic landmarks.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in AUG 2020
Photo courtesy of Santa Fe Realty
- The lowest-priced single-family Flagstaff home that sold in August was a $190,000 1-bedroom on a cul-de-sac in Sunnyside. It features a fenced yard and large Ponderosa trees. Zoned HR limited.
- The lowest-priced Flagstaff townhome that sold was a $254,900 2-bedroom, 1.5 bath North Pointe Townhouse in downtown Flagstaff (Flagstaff Townsite neighborhood)
- The lowest-priced Flagstaff condo that sold was a $134,850 renovated Arbors (Woodlands Area) studio unit located right next to the parking spot, near NAU.
Flagstaff Home Buyer Advice
Mortgage rates keep dropping, but should you go for it? Could rates continue to drop? If you are looking to buy or refinance your mortgage, should you wait to scoop up an even better deal in the months to come?
In theory, rates could indeed continue to go lower—all the way down to 0%. That's never been seen here in the U.S. However, it's a current reality in other countries, such as Denmark and Finland. Such a scenario is unlikely to happen here. It would require the Fed to make its rates negative, and keep them there for years. That's something Fed executives said they are opposed to.
Still, even if rates don't go all the way to 0%, they still might go lower than they are now. Several mortgage brokers have offered rates as low as 1.99% recently. However, you need to be careful if you see such offers. The ultra-low mortgage rates that have been offered recently all came with very high upfront costs, which tacked on thousands of dollars right out of the gate.
The fact is, when considering a new mortgage, it’s important to look at several factors. These include the interest rate, upfront costs, and monthly payments. Sometimes, it might be better to get a loan with a slightly higher interest rate in exchange for lower costs.
So what does all this mean for you?
Well, current mortgage rates are the lowest on record and are far below anything ever seen in the real estate market. These low rates are making homes more affordable. While there is a chance that rates will go still lower, there is also a chance that this is as good as it gets. Additionally, many of the lower rates that are popping up aren't as good as they seem at first blush. That's why I think it makes sense to consider taking advantage of the current low rates.
Of course, this is a complex question. It makes sense to enlist the help of a good lender because they can help you get the best possible rate with the best-attached conditions. If you are looking for financing, give me a call at 928.606.6749. I know and work with several top lenders I can recommend. They can guide you through this complex issue and help you come out the other end with the best possible solution.
If you are just considering buying, take a look at some of the beautiful homes that recently came on the Flagstaff market.
Home Buying Tips Our home buyer's blog will help you plan and prepare for your successful home purchase and avoid headaches and surprises that may arise during the process.
Flagstaff Home Seller Advice
This August, nearly a third of renters were unable to pay rent. Likewise, a growing number of homeowners are falling behind on mortgage payments. These are lingering effects of the economic lockdown surfacing now because unemployment benefits and various mortgage forbearance programs are coming to an end. That's why experts predict a rise in defaults and evictions, which is likely to wash over the entire market in the coming weeks and months.
What does this mean for you? Well, if you have been thinking of selling, now might be a golden moment. The supply of Greater Flagstaff homes for sale in August further declined from last month to under 3 months, we were at 5.88 a year ago. A severe lack of homes for sale means you could sell in record time, and since low mortgage rates are making homes more affordable, you could get top dollar for your home.
A normal market would have 6-7 months of inventory. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices. It's a seller's market for Flagstaff homes except in 1 high-end price range.
However, the situation could change things quickly. We could see an influx of new homes for sale on the market this fall, which would drive down prices and put us into a buyer’s market, with many homes sitting for months while buyers pick and choose among them.
If you are considering selling your home, you can start by simply finding out what you could get for it in the current hot market. An easy way to do this is with the following home value calculator, which takes into account recent area sales. Click below and Enter your address to find out what your home is currently worth
If you’d like a free consultation regarding your home’s value, give us a call at 888.446.5602. Kelly will be happy to talk about strategy and tell you how to take advantage of the current market. Our team sold 85 homes last year, so we know how to guide you through any situation and make sure you sell quickly and for top dollar.
LET'S CONNECT TODAY!
Whether you connect by phone or video chat, we can help you understand how to safely navigate the housing market so that you can prioritize the health of your family without having to bring your plans to a standstill. Whether you’re looking to buy or sell, we know the best protocol as well as the optimal resources and lenders to help you through the process in this fast-paced world that’s changing every day. Give us a call at 888.446.5602 or email email@example.com.
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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