Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Group Brokered by eXp / by Joselyn Uy

January 2022 Flagstaff Market Report

 

 2022 Flagstaff Home Sales Off to a Great Start, Inventory Continues Decline

 

I hope that your year is off to as good of a start as the Flagstaff housing market. Here's our latest update

 

FLAGSTAFF HOME SALES

The US Existing-Home Sales Surge 6.7% in January while Greater Flagstaff's housing sales declined by 22.3% from December according to data provided by the Northern Arizona MLS. There were a total of 108 home sold last month which is up 5.9% from a year ago. This is the second-highest January Flagstaff home sales activity in more than a decade. The highest on record was from 2020 when there were 113. 

 

January 2022 Flagstaff Home Sales By Type

 

In the month of January, the Kelly Broaddus Group Brokered by eXp Reaty sold five Northern AZ properties valued at over $4.7M. This is our second best January home sales on record. Big thanks to our Flagstaff and Sedona clients. Last year we helped buy and sell ten homes worth $7.7M. 

 

FLAGSTAFF MEDIAN HOME PRICE

Flagstaff Median Home Price & DOM January 2022

"The median list-to-sales ratio for this area is 103%." List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property.

“Homes priced at $500,000 and below are disappearing, while supply has risen at the higher price range.” said Lawrence Yun, NAR’s chief economist.  He noted that such increases will continue to shift the mix of buyers toward high-income consumers. Clearly, more supply is needed at the lower-end of the market.

The median sold price in January is up 41.8% year over year to $689,000, a new monthly high. Homes remained on the market for an average of 52 days. This is down from of 63 days we saw in December, and faster than the 58 days we saw a year prior. This is a welcome news for home sellers, which shows that demand overall remains historically high.

DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE

 

January 2022 Flagstaff Market Watch Summary

2022 Flagstaff Real Estate Market Watch Total Home Sales -   108 homes, up 5.9% vs Jan 2021.

Median Sale Price -  $689,000 up 41.8% vs Jan 2021, highest in more than a decade

Mortgage rates  - Average 30-year fixed-rate mortgage rate ended 2/17 at the highest levels in 2 months at 4.23%. Mortgage rates are climbing and just above August 2019 levels.

Longest days on market (SF): 345 days This is a new build rustic farmhouse in Slayton Ranch Estates. Open concept 5 bedroom, 3.5 bath, with breathtaking views of the San Francisco peaks.

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 2022

FLAGSTAFF'S PRICIEST HOMES SOLD in January 2022

Photo courtesy of Russ Lyon Sotheby's International Realty

  • The highest-priced single-family Flagstaff home that sold in January was a $1,725,000 Equestrian Estates home located on 1.45 acres bordering State Trust land. 4,287 SQ.FT, 4 bedroom, 4.5 bathroom and multiple entertainment decks & patios. 
  • The highest-priced Flagstaff townhome sale was a $1,200,000 furnished, upgraded four bedroom home in Switzer Mesa, a newer townhome community in Flagstaff.
  • The highest-priced Flagstaff condo sale last month was a $680,000 luxury 2nd story private treetop condo, with views on all 3 sides, situated on a quiet cul-de-sac in the gated Flagstaff Ranch neighborhood. 

 

THE MOST AFFORDABLE  FLAGSTAFF HOMES SOLD in JANUARY 2022

Lowest Priced Flagstaff Home in January 2022

Photo courtesy of RE/MAX Fine Properties

  • The lowest-priced single-family Flagstaff home that sold in January was a $340,000 two-bedroom malapai rock cabin in Mountainaire with numerous old growth Ponderosa Pine trees on a quarter acre lot.
  • The lowest-priced Flagstaff townhome that sold last month was a $318,000 one bedroom Pointe North townhouse in Flagstaff Townsite ( Historic downtown Flagstaff)
  • The lowest-priced Flagstaff condo that sold was a $225,000  one bedroom fully remodeled University Meadows (Riordan Ranch) unit located at the edge of NAU and near Riordan State Park. Perfect for investors or as a starter/vacation home.

 

Flagstaff Home Buyer Advice

 

Is it still a good time to buy a home? If you’ve been considering it, you’ve likely been watching the real estate market. You’ve probably seen that interest rates are increasing and home prices rose at record levels in 2021.

 

Does that mean it’s a bad time to buy a home? The experts say no. Jon Meyer, The Mortgage Reports’ loan expert and licensed MLO said, “While it’s always nice to get a better rate and have a smaller total monthly payment, if you can afford the home, it’s never a bad time to buy.” 

However, with home prices and interest rates still rising, it’s a good idea to buy sooner rather than later. Don’t let those two facts discourage you; our rates are still historically low, so even a more expensive house will cost less now than it did in the past.

It’s not a great idea to wait and see if rates decline again. Playing the waiting game with interest rates rarely goes in your favor. On December 15, The Federal Reserve announced that they’ll increase rates a few times in 2022. However, even if you decide to wait to buy until later this year, rates will still be extremely affordable.

 

Current Rates VS the last 5 decades

Across the nation, the median home price climbed 14.6% year over year in December. The excellent news is that home price growth will slow in 2022. However, don’t take that to mean that prices will slip; the rate of growth will just decelerate. 

 

If you’re thinking that you might just rent for a while and see how things go, that’s not the best idea. While you won’t have to pay property taxes or homeowners insurance, rental rates are inflating. In November, the average monthly rental rate jumped up 6.8%!

Inflation has reached its highest point since 1982, and many people turned to renting last year. However, that heightened demand and inflation rates will likely make renting even more financially challenging than buying in 2022.

 

What about the ongoing pandemic; will that affect your home-buying prospects? COVID-19 has been both positive and negative for homebuyers, which means our market has changed somewhat in response. You need to be more in the know than ever, so here are a few tips:

  •     Know what you can afford. How much have you saved for a down payment? What is your credit score? Your score will directly affect the interest rate you can get on your loan. 
  •     Get pre-approved for your mortgage. Your lender will take into account your debt payments, income, and credit score to determine exactly how much mortgage you can carry. A pre-approval letter means your lender has reviewed your credit, analyzed your file, and decided to fund your home loan. A pre-qualification isn’t as good as a pre-approval. 
  •     Decide what trade-offs you’re willing to make. Make a list of the things you can live without so that if you have to make choices, you know what to do. Each decision you make for your new house and the prioritization you give it has consequences. 
  •     Consider housing alternatives. If buying a single-family home is too much right now, think about buying a two- or three-family property, where you’ll live in one unit and rent out the other(s). Also, building a multigenerational household to leverage additional income is a rising trend. With the way COVID is going, remote work is increasing in popularity, so perhaps consider buying in a more affordable area, even if it’s farther from your workplace. 
  •     Work with professionals. Everyone you work with during the process should be willing to kindly share their knowledge and expertise. That includes your real estate agent, home inspector, mortgage lender, tax expert, and whoever else you contact for assistance. Remember to educate yourself about the process both beforehand and during the transaction. 

 

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 a mortgage and buying a house this year is right for you.

 

If you’d like to take a 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

Search Northern Arizona Homes For Sale

 

Home Buying Tips Our home buyer's blog will help you plan and prepare for your successful home purchase and avoid headaches and surprises that may arise during the process.

Sign up for free to receive our updates about coming soon properties and homes for sale not listed on the MLS. I can set up a customized search so you’ll get notified when new listings that meet your criteria hit the market.

 

Flagstaff Home Seller Advice 

 

Though demand remains robust, most consumers are apprehensive about buying a home at present prices. Home prices have skyrocketed as buyers compete for a limited number of houses on the market.

The chart below shows us the 12 month trend of active, new and sold listings in the Northern Arizona MLS. Recent home sales have been stronger than anticipated, and we still have way more buyers than homes to sell to them. The market is especially competitive at lower price points because buyers with limited cash can more easily be outbid by investors or cash buyers.

Northern AZ MLS Listings 12 month Trend

 

If you’re considering selling, NOW is the ideal time because prices are likely reaching their peaks, and buyers won’t continue to pay these prices forever. 

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

 

What is the value of your Flagstaff Home?

 

Home Selling Tips Our blog for 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 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 kelly.broaddus@exprealty.com. 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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