Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Group Brokered by eXp / by Joselyn Uy
Is the Flagstaff Real Estate Market Shifting to Favor Homebuyers?
The Flagstaff market has been cooling off a bit in recent weeks, as more homes are available, and demand is less. The rapid rise in mortgage interest rates in March and April was slowing home sales, along with still-rising home prices. We are still in a Seller's Market. If the market continues to cool, then we will move to a more "balanced market". Expect prices to follow lower. Here's our latest update.
FLAGSTAFF HOME SALES
The Existing-Home Sales Retract 2.4% in April while Greater Flagstaff's housing sales declined 7.9% from March according to data provided by the Northern Arizona MLS. There was a total of 117 homes sold, which is also down 30.4% from a year ago.
"Higher home prices and sharply higher mortgage rates have reduced buyer activity," said Lawrence Yun, NAR's chief economist. "It looks like more declines are imminent in the upcoming months, and we'll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years."
In the month of April, the Broaddus Properties Group Brokered by eXp Realty sold two properties in Northern Arizona valued at over $600K, thanks to our Williams and Flagstaff clients. Last year we helped buy and sell 8 homes worth $3.3M+.
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 103.1%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
The median sold price in April is up 26% year over year to $696,000 a new monthly high. Homes remained on the market for an average of 38 days. This is slower than the 35 days we saw in March, but faster than the 46 days we saw a year prior.
If the market continues to cool, then expect prices to follow lower. It may take a few more weeks of slack demand for prices to reflect and begin to fall.
APRIL 2022 Flagstaff Market Watch Summary
Total Home Sales - 117 homes, down 15.9% vs April 2021.
Median Sale Price - $696,000 up 26% vs April 2021, highest in more than a decade
Mortgage rates - Average 30-year fixed-rate mortgage rate ended 4/19 at 5.27%. Rates can change rapidly during the day, and massively from week to week even though they can also be very boring for months on end.
Longest days on market (SF): 443 days This is a newly built single level 3-bedroom, 2.5 baths home in the Timber Sky community with a 3-car attached garage
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 must be off the MLS for at least 90 days for the CDOM to restart, even if a different agent lists it. We report the average days on the 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 APRIL 2022
Photo courtesy of Realty One Group, Mountain Desert, Melinda Morfin
- The highest-priced single-family Flagstaff home that sold in April was a $2,950,000 four-bedroom luxury custom home in Pine Canyon described as "mountain modern meets contemporary industrial"
- The highest-priced Flagstaff townhome sale was a $704,000 4-bedroom townhouse in Presidio with an open floor plan and a two-story great room
- The highest-priced Flagstaff condominium sale was a $1,400,000 three-bedroom, luxury main level Mountain Vista Condo in Pine Canyon, turn-key and fully furnished
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in APRIL 2022
Photo courtesy of RE/MAX Fine Properties, Weston Foster/Justin Bemis
- The lowest-priced single-family Flagstaff home that sold in April was a $260,000 3-bedroom home in Sunnyside with an HR zoning that allows for multiple units - there's potential to convert the existing home to a duplex or build another home on the lot.
- The lowest-priced Flagstaff townhome sale last month was a $275,000 three-bedroom Christmas Tree Estates townhome, no HOA. Close to the mall, shopping, and movie theater.
- The lowest-priced Flagstaff condominium sold was a $205,000 one-bedroom second story studio in The Arbors. Close to Northern Arizona University, downtown shopping, restaurants.
Flagstaff Home Buyer Advice
Good news: Flagstaff home inventory rose 16% in April to a total of 602 homes listed on the NAMLS. Homebuyers have more homes to choose from, but this number is still lower than the same period last year.
Mortgage rates are still rising. When mortgage rates rise, so does the monthly payment you’re able to lock in on your home loan. That could limit the amount of home you can afford to buy that’s within your financial reach. .
Today, the average 30-year fixed mortgage rate is above 5%, and in the near term, experts say that’ll go up in the months ahead.
While it’s true rising mortgage rates and home prices mean buying a house today costs more than it did a year ago, you still have an opportunity to set yourself up for a long-term win. Buying now lets you lock in at today’s rates and prices before both climb higher.
If you’d like to look at what’s available on the market today, you can view the homes that are available in the Northern Arizona MLS right now:
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Flagstaff Home Seller Advice
While increased interest rates are causing a dip in buyer demand, home inventory is still scarce. Slowing demand is also discouraging some homeowners from selling.
With demand and supply both slipping, the market isn’t likely to flip from a seller’s market to a buyer’s market anytime soon.
As a result, home prices are still expected to increase throughout 2022. Zillow predicts that annual home price appreciation will “continue to accelerate through the spring, peaking at 22% in May before gradually slowing to 17.8% by February 2023.” The increased mortgage rates will slow home price growth, but every major real estate firm still expects home prices to grow this year.
You may be wondering how inflation and our general economic situation play into this. While inflation is hitting the average consumer hard and some worry, we may see a recession in 2023, the real estate market is expected to remain strong. Interest rates are slowing down buyer activity, but it likely won’t be enough to cause a crash.
In the lead-up to the crash of 2008, the real estate market had already experienced a significant downturn. That’s something we are not seeing today. Many are actually looking to the real estate market to lessen the impact of a possible recession in 2023.
Overall, it is still a fantastic market in which to sell your home. Prices have never been better, and while higher interest rates may make it harder to buy, there are plenty of strategies that can help you find a new home and make the whole process smoother.
The market projections are positive, but the future is still uncertain. This may be your last best chance to sell your home for top dollar before rates climb even more and price more buyers out of the market.
If you’re curious about what your home is worth in today’s market, click the image below then enter your address to instantly calculate your home’s value in today’s market based on recent Flagstaff home sales
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.
If you have any questions about our market or are thinking about buying or selling in Flagstaff, don’t hesitate to call us at 888.446.5602 or email us at firstname.lastname@example.org. We’re out in the market every day helping clients to buy and sell in Northern Arizona, and we do research so we have the best advice to give you, no matter your situation.
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