Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff's Housing Market Inventory at Record Low as Home Values Continue Trend Up
The spring market is back with a vengeance. After a full year of dealing with COVID-19, a vaccine surge is on the horizon and the economic outlook is positive. March, a historically active month for the market, is once again poised for a strong performance. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US existing home sales descend 6.6% after 2 months of gain while Greater Flagstaff's February housing sales dip 3% vs the previous month. According to data from the Northern Arizona Multiple Listing Service (NAAR), Flagstaff home sales dropped 5.6% with 102 units sold vs February 2020 when there were 108. Here's why: record low inventory.
More inventory this spring could grease the wheels of the housing market and lead to huge increases in sales. February is traditionally a slow month, but we are excited to share that we broke our best February record sales with 9 homes sold valued at over $4.3M. Big thanks to our clients!
FLAGSTAFF MEDIAN HOME PRICE
February housing prices in Flagstaff hit a new monthly high with the median sales price coming in at $530,000.
“With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady,” NAR Chief Economist Lawrence Yun.
February 2021 Flagstaff Market Watch Summary
Total Home Sales - 102 homes, down 5.6% vs February 2020.
Median Sale Price - $530,000, up 33.5% vs February 2020, highest in more than a decade
Mortgage rates - A 30-year fixed-rate mortgage with 5% down and very good credit is at an average of
Longest days on market (SF): 453 days Originally listed for over $670,000 in 2020 this 24.99-acre ranch in the Forest Survey Tract area stayed on the market for just 14+ months before it sold.
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 FEBRUARY 2021
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in February was a $2,160,000 - 4 bedroom modern luxury home in Pine Canyon.
- The highest-priced Flagstaff townhome sale in January was $795,000 - a 4 bedroom tri-level luxury townhome in Switzer Mesa. An elevator ensures accessibility to each floor.
- The highest-priced Flagstaff condo sale in February was a $430,000 - three-bedroom unit with 2 decks perfect for a private getaway, or entertaining friends and family. Enjoy all that Flagstaff and Flagstaff Ranch has to offer, golf, tennis, pickleball, fine dining, etc
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in FEBRUARY 2021
Photo courtesy of Realty One Group, Mountain Desert
- The lowest-priced single-family Flagstaff home that sold in February was a $285,000 - charming two-bedroom in Timberline with awesome views. Itused to be a successful AirBnb
- The lowest-priced Flagstaff townhome that sold in February was a $320,000 - 3 bedroom 2.5 bath Swiss Manor townhome located at the base of Mount Elden with hiking and biking trails nearby.
- The lowest-priced Flagstaff condo that sold in January was $163,000 - 931 sqft Sunnyside 2bedroom unit. This home needed updates and was priced below market to compensate.
Flagstaff Home Buyer Advice
Millennials—the largest generation in American history—will continue to pour into the market after helping Zillow’s traffic skyrocket to 9.6 billion visits last year. With more sellers primed to enter the market, weary homebuyers may find a smidgen of relief—but they still won’t be calling the shots. (Offers over list price will still be par for the course.)
Great news for buyers: the Fed intends to keep mortgage rates artificially low.
On March 10th, 2021 Fannie Mae imposed a 7% limit to the number of Second Homes and Investment Properties in their portfolio. This resulted in interest Rates hike on all Second Home and Investment Property transactions.
So what does this all mean for you?
There are scarcely any homes going up for sale, so you’ll want to be as prepared as possible when you’re ready to buy. Though some home buyers may be deterred by interest rates ratcheting up a bit, many more are rushing to lock in affordable monthly payments while they still can.
As mentioned in my previous blog, if you're in the market to buy your second home or investment property rates could go up as high as 4.5% with stricter borrowing rules. This means your purchasing power will decrease, your credit score will have to be higher, you’ll have to put more money down, or you’ll have to look stronger on paper.
FLAGSTAFF HOUSING INVENTORY
Inventory remains very tight on all price ranges with available homes under 1 month supply, except at the $2M to $2.2M with a normal 6 months supply. See All Active and Pending Homes
With demand for affordable Flagstaff homes exceeding supply, the competition will heat up in the months ahead. Beginning your home search now could lead to a successful and less stressful buying experience.
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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 lenders that best fits your needs.
Flagstaff Home Seller Advice
This seller’s market has led to homes in Flagstaff fetching a jaw-dropping number of bids before going under contract for tens of thousands of dollars over list price.
Would-be sellers who sidelined their plans last spring due to COVID-19 may feel more optimistic this time around. They’ve watched the 2020 housing market triumph in the face of adversity, and they’re seeing consumer confidence rise now.
So what does this all mean for you?
In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. You have the leverage to sell your house on your terms.
Should you renovate before you sell?
Your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.
Home values are going up and spending fewer days on the market, so having a professional on your team to help you navigate offers will be important for any seller. The competition will increase markedly over the next few months. Netting top dollar is still more than possible, but overpricing a home and failing to prepare it for the market is a losing strategy.
If you'd like to get an idea of what your home is worth right now, you can use our home value calculator, which is based on recent Northern Arizona MLS sales. Click the image below then enter your address to find out what your home is currently worth.
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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