Flagstaff AZ Real Estate Market Data Provided by The Broaddus Properties Group Brokered by eXp / by Joselyn Uy
Flagstaff Home Sales Spike in February 2023, Prices Fall 4%
February is usually one of slowest months in Flagstaff real estate and this year is no different. Prices have declined in recent months, and we can expect a busy spring selling season, fueled by changing mortgage rates and low inventory. Here's our latest update.
FLAGSTAFF HOME SALES
US Existing-Home Sales Surged 14.5% in February, Ending 12-Month Streak of Declines while Greater Flagstaff's housing sales increased 36.7% from the previous month. Lower mortgage rates and the year-on-year decrease in prices pulled buyers back into the market. There were sixty-seven homes sold, a 25.6% decrease from the previous year.
"Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines. Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs,"said National Association of Realtors Chief Economist Lawrence Yun.
The Broaddus Properties Group Brokered by eXp listed and sold seven Flagstaff and Williams homes valued at over $5.7 million in February. Last year, we assisted in the purchase and sale of five homes in Flagstaff and Sedona totaling $4.5 million.
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 98.5%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
The rise in interest rates, combined with a drop in buyer demand, had quite an effect on home prices. This month's median home price is 4% lower than January. Year on year, home price growth has slowed for the third month in a row. Flagstaff's median sold price in February fell 5.8% year on year to $645,000, from a high of $684,500 last year.
Homes are selling faster than in January, with a median of 66 days on the market, but they are still selling much slower than last year's forty-two days
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FEBRUARY 2023 Flagstaff Market Watch Summary
Total Home Sales - 68 homes, down 24.4% vs February 2022.
Median Sales Price - $645,000, down 5.8% vs February 2022
Mortgage rates - Mortgage rates declined across the board this week as the markets reacted to the sudden failures of Silicon Valley Bank and Signature Bank. The average 30-year fixed rate mortgage rate is around 6.9% as of March 21
Longest days on market (SF): 317 days This four-bedroom custom home sits on heavily treed 2.5 acres bordering forest service located in the Rio Rancho neighborhood.
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 homes.
- The Flagstaff single-family luxury market is a Balanced Market with a 17% Sales Ratio.
- Homes sold for a median of 94.39% of list price in February 2023.
- The most active price band is $975,000-$999,999, where the sales ratio is 100%.
- The median luxury sales price for single-family homes is $1,800,000.
- The median days on market for February 2023 was 89 days, up from 43 in February 2022.
FLAGSTAFF'S PRICIEST HOMES SOLD in FEBRUARY 2023
Photo courtesy of Symmetry Realty Brokerage
- The highest-priced single-family Flagstaff home that sold in February 2023 was a $5,165,000 four-bedroom custom home in Pine Canyon overlooking the 18th fairway with floor to ceiling windows and pocket doors
- The highest-priced Flagstaff townhome sale was a $624,900 three-bedroom, south-facing, energy-efficient, highly upgraded townhome in Forest Springs.
- The highest-priced Flagstaff condominium sale was a $444,400 two-bedroom new build, modern bungalow in Woodshire on Butler Condominiums nestled among towering ponderosa pines
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in FEBRUARY 2023
- The lowest-priced single-family Flagstaff home that sold in February was a $128,000 off-grid get-away on ten acres in Other East Rural area
- The lowest-priced Flagstaff townhome sale last month was a $375,000 two-bedroom in Lower Greenlaw close to schools, shopping, hiking, restaurants
- The lowest-priced Flagstaff condominium sold was a $262,585 studio in Switzer Mesa building four with separate bedroom (no window), already under construction
Flagstaff Home Buyer Advice
Data from the Northern Arizona MLS show that only one hundred nine new homes were on the market last month, 35.1% lower than last year. Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation
Should I buy a home this spring? Here are three reasons you should consider making a move:
- Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is rent is going up.
- Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
- Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.
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:
Click here to see all Flagstaff homes for sale
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Flagstaff Home Seller Advice
There is less than two months' supply of inventory. The Flagstaff real estate market is firmly in favor of sellers for homes priced under $1,500,000 and could trigger prices to rise again. Many existing homeowners are reluctant to sell their current home, buy a different property and then borrow at a higher rate, thereby restricting the supply of homes for sale.
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
Home Selling Tips Our blog for Northern Arizona home sellers has tons of tips to help sell your home faster and add thousands of dollars to your bottom line. Check it out.
We at the Broaddus Properties Group 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’ve been waiting since 2020 to make a move, I can help you decide if now is the right time. If you have any questions about buying or selling in Flagstaff, or want to get the process started, give me a call or send an email. I look forward to hearing from you! Don’t hesitate to call us at 888.446.5602 or email kelly.broaddus@exprealty.com.
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