Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff's Housing Market Off to a Slower Start In January, Inventory Remain Very Light
January is traditionally one of the slowest months in real estate. With February almost in the books and the home selling season getting ramped up, we wanted to pass on some information on how the year kicked off.
FLAGSTAFF SINGLE FAMILY HOME SALES
The US existing home sales rose 0.6% while Greater Flagstaff's January housing sales dropped 42% vs Dec 2020. Compared to a year ago Flagstaff home sales started slower with 99 units sold vs. January 2020 when there were 113. Here's why: record low inventory and bad weather.
With last year's deals finally closing last month, 2021 started very strong for the Kelly Broadus Team. We bagged our highest January sales ever with 10 sold properties valued at $7.6M. We expect that spring's going to be a great market if we can have more homes on the market!
FLAGSTAFF MEDIAN HOME PRICE
January housing prices for the greater Flagstaff area jumped 22% year-over-year, with the median sold price coming in at $486,000. This is a new monthly record.
January 2021 Flagstaff Market Watch Summary
Total Home Sales - 99 homes, down 12.4% vs January 2020.
Median Sale Price - $468,000, up 22.4% vs January 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 3.09% (2/24/2021).
Longest days on market (SF): 710 days Originally listed for over $2.7M in 2019 this luxury home stayed on the market for 23+ months before it sold. This is also the most expensive property sold in Jan 2021.
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 JANUARY 2021
Photo courtesy of Flagstaff Top Producers R.E
- The highest-priced single-family Flagstaff home that sold in January was a $2,355,000 - 4 bedroom, Hidden Hollow luxury home with views of the San Francisco Peaks and Mt Elden. This is an architectural masterpiece tucked on 9.65 acres backing National Forest Service, close to Flagstaff Medical Center and Downtown.
- The highest-priced Flagstaff townhome sale in January was $656,779 - a 3 bedroom new build luxury townhome in Flagstaff Ranch. The new owners had to purchase the required membership to the Flagstaff Ranch Golf Club since it is not included in the list price
- The highest-priced Flagstaff condo sale in January was a $320,000 - one-bedroom unit in Continental Country Club boasting unobstructed views of Mt. Elden and the Continental Par 3 course from the main deck.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in JANUARY 2021
Photo courtesy of HomeSmart
- The lowest-priced single-family Flagstaff home that sold in January was $325,000 - charming rustic two-bedroom mountain cabin retreat in the North of Hospital (NoHo) area
- The lowest-priced Flagstaff townhome that sold in January was $290,000 - 2 bedroom 2.5 bath Townhome located in the Boyington area. Close to NAU, Coconino Community College, National Forest Service land, and Lake Mary.
- The lowest-priced Flagstaff condo that sold in January was $140,000 - 486 sqft upper-level Woodlands Area (Arbors) studio unit perfect starter or vacation home
Flagstaff Home Buyer Advice
For first-time buyers, the decline in the 30-year fixed rate from 3.65% in mid-March when the pandemic hit to a record-low of 2.65% on January 7, 2021, has provided unexpected leverage, reports Realtor. com. “Practically, for many buyers, lower rates allowed them to stretch their budgets and buy more expensive homes than they would have.”
Home loan rates have increased sharply this past week.
So what does this all mean for you?
Because of extremely limited supply, a lot of home buyers are bidding over asking price, and they can do that because the interest rates were so low. If you are buying a home this winter, get pre-approved for a mortgage now. Take advantage of current mortgage rates that are still below pre-COVID levels, before it goes up.
If you have the budget, buying a larger home that reduces crowding is probably better for your family than living in a smaller home, according to a study published in the Journal of Environmental Psychology. Researchers said that if a home is too small, life's stresses feel amplified. Interestingly, though, researchers also noted that perceptions of space were more important than actual square footage.
FLAGSTAFF HOUSING INVENTORY
Inventory remains very tight on all price ranges with available homes under 1.5 months supply, except at the $2M to $2.2M with a normal 6 months supply.
- There are 10+ houses available in the $350K to $399,999 range and
- 10+ houses available to purchase in the $400K to $450K range
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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Flagstaff Home Seller Advice
The inventory of Flagstaff homes for sale last month fell under 1.5 months supply. Demand far outstrips supply. Few homes are on the market, and prices continue to surge. Homes are being sold as quickly as they come to market.
House-price appreciation right now is going up too much,” Kelly Broaddus said, noting the record highs markets seem to be hitting as demand outpaces supply.
So what does this all mean for you?
Mortgage rates are also still near historic lows, making the market even tighter. Buyers want to take advantage of the current low rates, but some simply can’t find homes to buy.
All this has combined to make it a great time for anyone looking to sell a home. The best time to sell is now. In these conditions, you could sell a home quickly, without hassle, and often at a premium.
More inventory is going to come back to market as people feel more comfortable. Ali Wolf, Chief Economist at Zonda, says some people will feel comfortable listing on the front half of this year. Probably more in the second half of the year, and then even going into the spring of next year.
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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