Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
The 2017 Flagstaff Housing Market In Review
Happy New Year! First, we would like to share our exciting news. We started 2018 with a new brokerage, eXp Realty, and we hope to provide our clients an even better service. Flagstaff's December 2017 housing numbers are in and it's that time of the year for our annual review. Let's take a look how December 2017 figures wrapped up Flagstaff housing stats for the year 2017!
FLAGSTAFF SINGLE-FAMILY HOME SALES
The US single-family home sales declined 2.6% for the month of December but in the Greater Flagstaff region, we have set a new record with 91 single-family homes sold, up 17% vs last year.
The Flagstaff total single-family home sales for the year came in at 1157 up 2% from the previous year. We are at the highest level in more than a decade. The record was 1210 sales set back in 2005 when prices were quite a bit lower. US total 2017 existing home sales posted a 1% growth vs 2016.
“Closings scaled back in most areas last month... Affordability pressures persisted, and the pool of interested buyers at the end of the year significantly outweighed what was available for sale," Lawrence Yun, NAR Chief Economist.
FLAGSTAFF MEDIAN HOME PRICE
2017 saw both sales and prices of single-family residences rise in the greater Flagstaff region. The median sales price rose to $375,000 up 7% from 2016, just missing the record of $379,000 set in 2006. Median price, the value where half sold for more, while the other half sold for less, more accurately reflects market conditions compared to the average sales price.
A COOL TOP AND A SMOKING BOTTOM
This is an apt description of the Flagstaff housing market for the whole of 2017. Strong buyer demand for affordable homes under $500,000 and extremely low supply set the Flagstaff real market smoking hot in the lower price range. Rapid price appreciation ensued and market conditions favored sellers. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a two-month supply of homes for sale under $500,000. Inventory tend to drop in winter, expect to see more homes as we move closer to spring.
By contrast, conditions continue to favor buyers for homes priced above $500,000. Buyers with budgets above $1.1 M have a lot of homes to choose from. We finished 2017 off very strongly, and I believe 2018’s going to be a great year.
December 2017 Flagstaff Market Watch Summary
Total Home Sales- 91 homes, up 17% vs 2016. This represents a new record.
Median Home Price- $375,000, second highest in more than a decade
Mortgage rates are about a 1/4th of a point higher from a month ago. A 30 year fixed rate mortgage with 5% down and very good credit is now at 4%.
Days on Market (Flagstaff): Over 45% of homes that closed in December was on the market for less than 90 days while three-quarters sold within 6 months. Longest days on market: 403 days
Days on market indicates the period of time when a property goes active on the Multiple Listing Service (MLS) to when it goes under contract. US luxury homes sold slower in December with national average days on market up to 183 days from 176 days in November. Phoenix AZ luxury homes stay 182 days on market on the average. See the December 2017 Luxury Market Report.
DECEMBER 2017 HIGHLIGHTS:
The Most Expensive Flagstaff Single Family Home Sold in December 2017 Sold for $1,707,000 This fantastic 5 bedroom Pine Canyon custom luxury home located on the 12th fairway of Pine Canyon's award-winning golf course boasts additional 3 guests suites and a massage room!
December 2017's Most Expensive Flagstaff Townhome Sold for $804,000. It's a 3 bedroom new mountain retreat in one of Flagstaff's premier golf community, Pine Canyon.
The Most Affordable Flagstaff Homes Sold in December 2017 are:
- $160,000- 3 bedroom Banked owned home located east of Flagstaff. This house tops the list of the most affordable single family home in Flagstaff.
- $165,000- This 1 bedroom unit with 622 sq ft of living space located in Tanglewood claim last month's most affordable condo spot.
- $144,000 - December 2017's most affordable Flagstaff townhouse is a one bedroom townhouse in the Christmas Tree area in the northeast side of Flagstaff.
Flagstaff Home Seller and Buyer Advice
What impact will the new tax code have on Flagstaff home values? Data released by Corelogic & NAR show that Arizona home values will increase by 5.6% to 5.7% by the end of 2018 considering the impact of the new tax law. The consensus is the effect of the new tax law is much less significant than originally thought.
Generally, high prices, limited availability, and quick sales of those homes that do come up for sale make the Flagstaff real estate market a favorable environment for sellers of "affordable homes".
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First-time home buyers and recent arrivals to the Flagstaff area find themselves at a disadvantage in the current environment. Many turn to renting or to buying condominiums or townhomes for their first residential purchase. Buyers with a larger budget ($500K and up) have a surfeit of homes to choose from.
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We are your Flagstaff home experts! Check out our 5 Star Zillow reviews for our happy client testimonials. Please contact us at 888.446.5602 or email firstname.lastname@example.org if you are looking for a Northern Arizona realtor to help you purchase or sell in Flagstaff/Sedona real estate and the surrounding areas.
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