Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Group Brokered by eXp / by Joselyn Uy
Flagstaff Home Sales Drop in February
A drop in home sales from the fourth quarter of last year to the first quarter of the current year is an expected seasonal norm. Prices have stabilized in the past few months, and we can anticipate an active spring selling season, fueled by changing mortgage rates and low inventory. Here's our latest update
FLAGSTAFF HOME SALES
The US Existing-Home Sales Fade 7.2% in February while Greater Flagstaff's housing sales shrunk 17.6% from January according to data provided by the Northern Arizona MLS. There was a total of eighty-nine home sold which is down 13.6% from a year ago. The highest on record was from 2020 when there were 113. Increasing mortgage rates and record low inventory contributed to the decline.
In the month of February, the Broaddus Properties Group Brokered by eXp Realty sold five Flagstaff properties valued at over $3.8M. This is our best February home sales on record. Big thanks to our Flagstaff clients. Last year we helped buy and sell seven homes worth $3.5M.
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 102.5%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
"Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases," said Lawrence Yun, NAR's chief economist. "Some who had previously qualified at a 3% mortgage rate are no longer able to buy at the 4% rate.
The median sold price in February is up 29.2% year over year to $684,500, a new monthly high. Homes remained on the market for an average of 42 days. This is swifter than the 52 days we saw in January, and faster than the 51 days we saw a year prior. This is welcome news for home sellers, which shows that overall demand remains historically high.
February 2022 Flagstaff Market Watch Summary
Total Home Sales - 89 homes, down 12.7% vs Feb 2021.
Median Sale Price - $684,500 up 29.2% vs Feb 2021, highest in more than a decade
Mortgage rates - Average 30-year fixed-rate mortgage rate ended 3/17 at 4.27%. Rates can change rapidly during the day, and massively from week to week even though they can also be very boring for months on end.
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 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'S PRICIEST HOMES SOLD in FEBRUARY 2022
Photo courtesy of Symmetry Realty Brokerage
- The highest-priced single-family Flagstaff home that sold in February was a $4,500,000 five-bedroom contemporary home sitting on the 18th tee box of Pine Canyon's award-winning golf course
- The highest-priced Flagstaff townhome sale was a $692,000 partially updated Lakeside Acres townhouse, close to Downtown Flagstaff & NAU, listed by Kelly Broaddus
- The highest-priced Flagstaff condominium sale was a $213,000, two-bedroom, modern bungalow in WoodShire at Butler
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in FEBRUARY 2022
Photo courtesy of Linton Real Estate
- The lowest-priced single-family Flagstaff home that sold in February was a $369,000, three-bedroom Greenlaw home with new roof, new hot water heater, remodeled bathroom, new furnace, new sewer lines and tiled throughout all in 2015. Property was sold AS Is.
- The lowest-priced Flagstaff townhome that sold last month was a $400,000, three-bedroom Elk Run townhome on the golf course, sold as is.
- The lowest-priced Flagstaff condominium that was sold was a $372,265 one bedroom fully remodeled Woodlands Area unit located in one of the more privately situated buildings in the complex. Perfect for investors or as a starter or seasonal getaway home.
Flagstaff Home Buyer Advice
Are you looking to buy a home for the first time? If so, you understand how difficult this market is. Inventory for people who typically qualify as first-time buyers (those making between $75,000 and $100,000 annually) is at an all-time low.
Despite the difficult path ahead, it’s still an attractive time to buy a home. As the Federal Reserve raises interest rates to curb inflation, housing will become less affordable. On top of that, Redfin chief economist Daryl Fairweather says that increasing rent prices make buying a better option. “At least when you buy, you get to lock in your monthly mortgage payments.”
The truth is that there are many benefits to buying, even in this tough market. Most buyers enter the market to take advantage of low rates and begin building equity, but there are many tax advantages to owning a home as well. If you’re thinking about buying soon, it’s crucial to be aware of the following benefits:
- Mortgage interest. After five years of owning your home, you can deduct interest on loans up to $1 million, and you can deduct on loans up to $750,000 before that. However, if you’re a first-time buyer, it’s unlikely you’ll hit either cap. This is important because it’s another way your mortgage payment will be cheaper than renting.
- Property taxes. If you’re married, you can deduct up to $10,000 in property taxes no matter how much you owe. Just make sure the tax benefit from doing this is worth more than the standard deduction.
- Private mortgage insurance. The Mortgage Insurance Tax Deduction Act of 2021 passed last year, which reinstated deductions and credits for mortgage insurance that expired in 2020. Once again, make sure deducting your insurance interest instead of taking the standard deduction makes sense for you.
- Energy-efficient upgrades. If you have solar electric or solar water-heating equipment, you can receive a tax credit.
- A home office. More people are working from home, and more houses have offices as a result. If you are self-employed and working from home, you can deduct $5 for every square foot of your office up to three hundred square feet. The sad news is that if you are a W-2 employee, you can’t take advantage of this credit.
What does all of this mean for you?
It’s a tough market, but the benefits of owning a home are still worth it. If you wait, things are only going to get harder. Reach out to us today, and let’s create a plan to achieve your home-buying goals sooner rather than later.
Waiting to buy has plenty of risks. A postponement will hurt your wallet and your ability to qualify for the home you want. Check your eligibility and the latest interest rates to see if locking in on a mortgage and buying a house this year is right for you.
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
If you’ve been sitting on the sidelines, it could be time to finally list your home. The Northern Arizona MLS total inventory was down 9% year over year in February, and new listings were down 19.4%.
Why aren’t people listing their homes even though they can get a fantastic deal? According to Danielle Hale, chief economist at Realtor.com, “Factors like omicron uncertainties could be causing sellers to hesitate even when they know housing conditions are favorable.”
Our lack of supply might lead you to think our market is slowing down, but things might be hotter than they have ever been. The average Northern Arizona home spends just 42 days on the market right now, a. That’s the fastest pace since we started keeping track of it in 2015. Feb of 2015 also recorded 42 days on market.
Home builders are trying to build as fast as possible to meet demand, but supply chain issues are gumming up the works. Now that the worst of the omicron surge is over and builders continue to try and meet demand, our lack of supply (and lack of competition) may be in its twilight.
Supply isn’t the only factor making our current market so crazy. Interest rates are finally increasing, and buyers are feeling the pressure. According to Ralph McLaughlin, chief economist at Kukun, “High levels of inflation could make it more difficult for first-time homebuyers to save for a down payment.
As inflation increases, the Federal Reserve will try to raise rates to keep it in check. Many buyers want to take advantage of the low rates while they can.
If you’re worried you’ve missed the boat on selling because rates are rising, don’t fret. As global tension increases and the world becomes more uncertain, real estate becomes a safer bet for investors. According to Taylor Marr, deputy chief economist at Redfin, tensions with Russia could keep interest rates lower for longer. “On the one hand, you have the Fed putting upward pressure on mortgage rates, and then on the other hand, these global tensions are anchoring rates a little bit."
What does all of this mean for you?
Now is still a fantastic time to sell, but the future is uncertain. Supply levels may finally increase, and demand may finally level out, so if you are looking to sell, this could be the best time to do so for a while. Buyers won’t be able to afford our rising prices forever, so take advantage while you can.
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 firstname.lastname@example.org. 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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