Flagstaff AZ Real Estate Market Data Provided by The Broaddus Properties Group Brokered by eXp / by Joselyn Uy
August Flagstaff Home Sales Slow Down, Posts 25% Decline Year Over Year
After a long stretch strongly favoring sellers, the market appears to be rebalancing at last. Inventory is continuing to grow – good news for buyers! – while home price appreciation slows. Here's our latest update.
FLAGSTAFF HOME SALES
The US Existing-Home Sales Slipped 0.4% in August from July while Greater Flagstaff's housing market posted a 17.3% decline according to data provided by the Northern Arizona MLS. There was a total of 163 homes sold, 25.2% lower than a year ago. This is the second lowest August since 2012.
"The softness in home sales reflects this year's escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago," National Association of Realtors Chief Economist Lawrence Yun.
In the month of August, the Broaddus Properties Group Brokered by eXp listed and sold three properties in Flagstaff valued at over $2.7 Million. Last year we helped buy and sell 8 homes worth $4.8 Million+!
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.
Flagstaff's August median sold price declined 13.7% vs last month, however it is still up 5% year over year to $630,000, highest in more than a decade. Homes remained on the market for 56 days (median). This is slower than the 53 days we saw in July and the year prior.
"The market is still suffering the effects of unusually low affordability. Interest rates are much higher than they were at the start of the year and even if prices drop to the level they had in January, homes will still be less affordable due to these higher rates,"
Michael Orr of the Cromford Report.
AUGUST 2022 Flagstaff Market Watch Summary
Total Home Sales - 163 homes, down 25.2 % vs July 2021.
Median Sale Price - $630,000 up 5% vs August 2021, highest in more than a decade
Mortgage rates - The 30-year fixed-rate mortgage rate averaged 6.02% as of September 15, up from the first week when it averaged 5.89%. A year ago at this time it averaged 2.86%.
Longest days on market (SF): 818 days This is a single level, brand new rustic mountain home in Anazasi Ridge with 4 bedrooms and 3.5 baths
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 LUXURY HOME SALES
The luxury benchmark price for Flagstaff single-family homes is $975,000, set by The Institute for Luxury Home Marketing. LUXURY BENCHMARK PRICE is the price point that marks the transition from traditional homes to luxury home.
- The Flagstaff single-family luxury market is a Seller's Market with a 29% Sales Ratio.
- Homes sold for a median of 100.00% of list price in August 2022.
- The most active price band is $975,000-$999,999, where the sales ratio is 71%.
- The median luxury sales price for single-family homes is $1,272,500.
- The median days on market for August 2022 was 50 days, down from 60 in August 2021.
FLAGSTAFF'S PRICIEST HOMES SOLD in AUGUST 2022
Photo courtesy of Symmetry Realty Brokerage, Deana Keck
- The highest-priced single-family Flagstaff home that sold in August was a $3,600,000 four-bedroom luxury mountain home in The Estates at Pine Canyon
- The highest-priced Flagstaff townhome sale was a $990,000 2-bedroom, 1,526 sqft single-level luxury townhouse in Pine Canyon that boasts upgraded features including upgraded stainless steel Viking appliances in the chef's kitchen.
- The highest-priced Flagstaff condominium sale was a $935,636 three-bedroom, new construction in Pine Canyon with large covered balcony and built-in BBQ . The bedrooms each include an en-suite private bath.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in AUGUST 2022
Photo courtesy of Linton Real Estate, Jean Bonderud
- The lowest-priced single-family Flagstaff home that sold in August was a $180,000 home in Sunnyside. The house has three bedrooms and sold in As-is Condition. Cash sale.
- The lowest-priced Flagstaff townhome sale last month was a $187,500 two-bedroom townhome in Rio Homes. This home is part of the Flagstaff Affordability Program. It is deed restricted and is a land lease.
- The lowest-priced Flagstaff condominium sold was a $200,900 one bedroom, energy efficient attainable unit by Miramonte at Ponderosa Parkway, located in the Switzer Mesa area
Flagstaff Home Buyer Advice
Homes aren’t selling as quickly, and buyers are less pressured to bid well above asking price to secure their offer.
"For many of today's buyers, the uptick in for-sale home options is taking away the sense of urgency that they felt during the past two years, when inventory was scarce. As a result of this shift coupled with higher mortgage rates, competition continued to cool in August, with listing price trends indicating that home sellers are noticing shoppers tightening their purse strings," said Danielle Hale, Chief Economist for Realtor.com®
At the end of August we had 48% more active listings compared to the same period last year, but still lower by 6% year to date compared to last year.
IS IT A GOOD TIME TO BUY?
Though mortgage rates have steadily risen over the last few months, it may still be a good time to think about taking advantage of rising home inventories and buying a new home.
Rental prices have continued to rise, and home building has yet to catch up to market demand, so there is no real way to avoid the rising cost of housing going forward. At least when you buy a home, you get to lock in a mortgage payment you can afford - and start building your equity, rather than your landlord's.
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
Seller sentiment has shifted, suggesting that today's homeowners feel like they missed the boat on peak pricing, while others could be concerned about the cost of buying their next home.
“Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.” Sam Khater, Freddie Mac’s Chief Economist
IS IT A GOOD TIME TO SELL?
YES! Inventory is still firmly in Seller’s Market territory. Flagstaff homes for sale under $800,000 strongly favors sellers with less than 3 months of supply.
Waiting is unlikely to reveal better conditions. By the end of the year we could start to approach a more balanced market condition if inventory growth continues at the current level.
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 email@example.com. 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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