Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Home Sales Surge in April 2019
We hope everyone had a great Memorial Day holiday weekend! With summer unofficially underway, it looks like the housing market isn’t taking any breaks from sales. Here are last months figures for Flagstaff.
FLAGSTAFF SINGLE FAMILY HOME SALES
In April, US Existing Home Sales dropped for the second time in a row to .04% after a strong rebound in February. Meanwhile, Greater Flagstaff's April housing sales are finally up by 4% (vs last year) with 97 total sales after declining for 3 consecutive months. This April is the second busiest on record. Properties remained on the market for a median of 57 days in April, down from 82 days in March and up from 54 days a year ago.
We are thrilled to share that the Kelly Broaddus team had the best April sales on record, closing the month with a total sales of over $5M!!!
FLAGSTAFF MEDIAN HOME PRICE
Housing prices in the greater Flagstaff region did hit another new high. This April the median sale price (single-family homes) came in at $409K which is up 5% from April ’18. The average price paid per-square-foot was $225 which also is a record. With demand for affordable Flagstaff homes still exceeding supply, we may not see home prices go down.
US home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.
INVENTORY & MORTGAGE RATES
Inventory has significantly improved in the lower price ranges as expected and will provide more choices for those looking to buy an affordable Flagstaff home. Mortgage rates are now at an average of 4.3% for a 30-year fixed rate which is still lower than the 4.5% a year ago.
- Mortgage rates fell again today, just barely inching to the lowest levels since early 2018. Our advice: Lock in the low rates while you can. If the lower rate environment persists, we are in for a great spring home buying season. Here's what you need to know about the mortgage process.
- Inventory levels have improved but the market still favors sellers for homes priced under $500,000.
It's still a seller's market for homes under $300K with less than 3 months supply of houses for sale. Check out the latest list of Flagstaff homes for sale under $300K
April 2019 data show that we are closer to a balanced market with 5 months supply of homes in the $300K to $500K price range. There are 130+ houses available in the $300K to $400,000 range and 50+ houses available to purchase in the $400K to $450K range.
APRIL 2019 Flagstaff Market Watch Summary
Total Home Sales - 97 homes (SF), up 4% vs April 2018.
Median Home Price - $409,000 (SF), up 5% vs April 2018
Mortgage rates - A 30 year fixed rate mortgage with 5% down and very good credit is now at an average of 4.3%
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 APRIL 2019
- $3,800,000 - Our homebuyer client bought this one of a kind mountain luxury estate in Pine Canyon! This is a 7,273-square-foot, three-story custom estate is laden with intricate, hand-crafted design.
- $419,000 - Last month's priciest townhome is an almost brand new 4 bedroom luxury townhome in the Pinnacle Pines area
- $245,000 - Another 2 bedroom unit in Summit Park Condos, same condo community that registered the priciest condo in Flagstaff that sold in March
The most AFFORDABLE Flagstaff Homes Sold in APRIL 2019
- Single-family - $126,858 - 2 bedroom fixer upper in Mountainaire
- Townhouse - $232,000 - 2 bedroom townhouse in Flagstaff Town, minutes to downtown
- Condo - $149,900 - 1 bedroom Tanglewood condo with gorgeous views of Mt Elden and access to amenities in nearby Aspen Valley and Continental Country Clubs
Flagstaff Home Buyer Advice
If you are in the market to buy a home this year, you may be confused about how much money you need to come up with for your down payment. Many people you talk to will tell you that you need to save 20% or you won’t be able to secure a mortgage.
The truth is that there are many programs available that let you put down as little as 3%. Those who have served our country could qualify for a Veterans Affairs Home Loan (VA) without needing a down payment.
These programs have cut the savings time that many families would need to compile a large down payment from five or more years down to a year or two. This allows them to start building family wealth sooner.
So then, why do so many people believe that they need a 20% down payment to buy a home? There has to be a reason! Today, we want to talk about four reasons why putting 20% down is a good plan, if you can afford it.
1. Your interest rate will be lower.
Putting down a 20% down payment vs. a 3-5% down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower the rate they will be willing to give you.
2. You’ll end up paying less for your home.
The bigger your down payment, the lower your loan amount will be for your mortgage. If you are able to pay 20% of the cost of your new home at the start of the transaction, you will only pay interest on the remaining 80%. If you put down a 5% down payment, the extra 15% on your loan will accrue interest and end up costing you more in the long run!
3. Your offer will stand out in a competitive market!
In a market where many buyers are competing for the same home, sellers like to see offers come in with 20% or larger down payments. The seller gains the same confidence that the bank did above. You are seen as a stronger buyer whose financing is more likely to be approved. Therefore, the deal will be more likely to go through!
4. You won’t have to pay Private Mortgage Insurance (PMI)
Simply put, PMI is “an insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.”
As we mentioned earlier, when you put down less than 20% to buy a home, your lender/bank will see your loan as having more risk. PMI helps them recover their investment in you if you are unable to pay your loan. This insurance is not required if you are able to put down 20% or more.
Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put down 20% on their next home.
If you are looking to buy your first home, you will have to weigh the benefits of saving a 20% down payment vs. the time and cost of continuing to rent while you save that amount.
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 lender that best fits your needs.
Flagstaff Home Seller Advice
In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.
Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).
In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!
If you’re thinking about selling now, let’s get started. From hiring the right real estate agent to handing over the keys, here is your step by step guide to the home selling process.
We are your Flagstaff home experts! Contact 928.606.6749 or email email@example.com if you are looking for a Northern Arizona realtor to help you buy/sell your Flagstaff/Sedona real estate and the surrounding areas.
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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