Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff 's February Housing Market Very Strong, Coronavirus Casts Uncertainty
This year's spring market was going to be another blockbuster year for real estate however during the past two weeks the COVID-19 crisis has impacted all parts of the economy. You've already heard about the massive stock losses in Feb and March. Mortgage rates hit all-time lows. Spring signal the start of the spring home-selling season and in just a few weeks we will see the impact of volatility and uncertainty surrounding Coronavirus. February numbers are in the books. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US existing home sales jump 6.5% in February while Greater Flagstaff's February housing sales dip 10% vs Jan 2020. According to data compiled from the Northern Arizona Multiple Listing Service (NAAR), Flagstaff home sales remain very strong with 106 units sold vs February 2019 when there were only 73.
February is traditionally a slow month but this year we, the Kelly Broaddus Team, posted our best February sales in value with 3 homes sold valued at around $1.4M. Everything was coming up roses for housing in February. Three weeks later, it’s a whole new world.
FLAGSTAFF MEDIAN HOME PRICE
February housing prices for the greater Flagstaff hit a new monthly high with the median sales price coming in at $420,000.
“With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady,” NAR Chief Economist Lawrence Yun.
February 2020 Flagstaff Market Watch Summary
Total Single Family Home Sales - 70 homes, up 156% vs February 2019.
Median Home Price - $420,000, up 1.7% vs February 2019
Mortgage rates - A 30 year fixed rate mortgage with 5% down and very good credit averaged 3.5%
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 February 2020
Photo courtesy of Russ Lyon Sothebys International Realty
- The highest-priced single-family Flagstaff home that sold in February was $1,687,500 - a 4 bedroom, 4368 sqft, new construction luxury home in Pine Canyon with expansive views of the 8th & 9th Fairway
- The highest-priced Flagstaff townhome sale in February was a $649,558 - 2 bedroom, 2.5 bathrooms new build in one of Flagstaff's premier golf community, Flagstaff Ranch
- The highest-priced Flagstaff condo sale in February was $819,637 - a 3 bedrooms, 3.5 baths Pine Canyon luxury new-build with 2 separate bedrooms suites a separate guest casita
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in FEBRUARY 2020
Photo courtesy of Linton Real Estate
- The lowest-priced single-family Flagstaff home that sold in February was a $250,000 - updated 3 bedroom in Upper Greenlaw
- The lowest-priced Flagstaff townhome that sold in February was a $245,000 - Multi-level 2 bed, 2 baths in Lower Greenlaw with an open patio in the backyard
- The lowest-priced Flagstaff condo that sold in January was a $195,000 - Upgraded 1 bedroom 1 bath upstairs unit in Woodland Area (The Arbors)
Flagstaff Home Buyer Advice
Buyers are clearly rattled by the economic shutdown, job layoffs and the massive drop in the stock market. Some have hit the pause button on their home search while others are forging on. Don't let frightening headlines scare you! If you are ready to buy your dream Flagstaff home now, take advantage of the low mortgage rate and decreased homebuyer interest - which means less competition for you. Here is what you need to know about the mortgage process.
With most buyers on home quarantine, we have seen an increase in the demand for virtual showings amidst the coronavirus outbreak. Use of Virtual Home Tours Spreads as Coronavirus Cases Spike
Inventory level is rising which is normal for this time of year. That's great news for buyers who are desperately looking for a new home. Currently, inventory has improved vs last month.
- There are 60+ houses available in the $350K to $399,999 range and
- 40+ houses available to purchase in the $400K to $450K range
Need a lender recommendation for your home loan? We work with trusted lenders who will walk you through the entire process and have your best interest at heart. Contact Kelly today and we will get you one of our trusted lenders that best fits your needs.
Flagstaff Home Seller Advice
“The temporary softening of the real estate market will likely be followed by a strong rebound once the economic quarantine is lifted, and it’s critical that supply is sufficient to meet pent-up demand.”
Many are concerned the current correction in the stock market is a sign that home values are also about to tumble. What’s taking place today, however, is nothing like what happened in 2008 when the economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.
This time, the stock market correction is being caused by an outside event (the coronavirus) with no connection to the housing industry. Many experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11. As an example, David Rosenberg, Chief Economist with Gluskin Sheff + Associates Inc., recently explained:
“What 9/11 has in common with what is happening today is that this shock has also generated fear, angst and anxiety among the general public. People avoided crowds then as they believed another terrorist attack was coming and are acting the same today to avoid getting sick. The same parts of the economy are under pressure ─ airlines, leisure, hospitality, restaurants, entertainment ─ consumer discretionary services in general.”
Since the current situation resembles the stock market correction in the early 2000s, let’s review what happened to home values during that time.
The S&P dropped 45% between September 2000 and October 2002. Home prices, on the other hand, appreciated nicely at the same time. That stock market correction proved not to have any negative impact on home values.
If you've been considering selling your home, you can get started by getting an idea of what your home is worth in the current hot market using this calculator that's based on recent sales:
CONNECT WITH US
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. Give us a call at 888.446.5602 or email firstname.lastname@example.org. 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.
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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