Here’s the latest information from our Flagstaff and Sedona markets.
In July, our Flagstaff and Sedona markets saw a bit of a slowdown, but that’s likely because most people have their minds on getting the kids back to school. This slowdown is a wonderful opportunity for you buyers who have been having a difficult time finding a home. If you’ve been considering buying, now’s the time while things aren’t as nutty. Our inventory has increased a little, but it still isn’t enough to satisfy demand, especially in the Flagstaff market.
Existing home sales across the country increased 2% compared to this time last year, but that number has fallen by 1.4% Flagstaff. I think that’s simply due to our very low inventory, as there aren’t as many homes to sell. In July, 147 single-family homes, 35 townhomes, and 18 condos sold. The demand remains strong, and three things are currently driving the market.
First, the millennial generation is the largest in the country, and they’re at the age where they’re having families and their jobs are paying more, so they’re our largest group of homebuyers right now. Second, we have the lowest mortgage rates we’ve ever seen. Third, the pandemic is affecting how people buy and sell homes. Those three things are creating the perfect storm of people wanting to buy homes.
"Our inventory has increased a little, but it still isn’t enough to satisfy demand."
The median list-to-sale ratio is 104.4% at present, which means homes are selling for 4.4% over list price, on average. The median sales price grew 27% year over year and is at $610,000 these days; the low interest rates have stoked prices. The 30-year fixed mortgage rate has remained at 2.7%, which is excellent.
The two most expensive homes that sold in Flagstaff in July were in Pine Canyon, and I was blessed to be able to sell one of them. They both sold for about $2,850,000. The highest-priced condo sold in Summit Park for $350,000, which is pretty amazing.
If you have any questions about our market or real estate in general, I’m available via phone or text. If there are any topics you’d like me to discuss in a future video, feel free to give us a call or shoot us an email. We’re here to serve you.