Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
It's A Supply Challenge, Flagstaff's Home Prices Continue to Break Records
At this time of year kids are back to school and our schedules tend to get a lot busier. And while inventory is slowly starting to increase, there is still not enough housing on the market to satisfy demand. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US Existing-Home Sales Rise 2.0% in July marking two consecutive months of increases while Greater Flagstaff's July housing sales shrink 1.4% for the first time since the start of the year. Flagstaff home sales also posted a 28.7% decline from a year ago with only 214 units sold, according to data from the Northern Arizona Multiple Listing Service (NAAR). Back in July 2020, Flagstaff home sales broke records with 300 homes sold, the most in over a decade, due to pent up demand and mortage rates falling under 3% for the first time since 1971.
"We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available,"
Lawrence Yun, NAR's chief economist.
Demand remains strong, with the current housing market is being driven by three main factors.
- MILLENIALS Millennials are now the largest generation in the country, and they’re enlarging their families and buying homes. “We anticipate that millennials will continue to lead homeownership demand,” said Odeta Kushi, deputy chief economist at First American Financial Corp.
- MORTAGE RATES Low mortgage interest rates continue to drive vigorous home-buying demand. While mortgage rates remain low for now, there’s a good chance that we’ll see an uptick in the coming month.
- PANDEMIC The U.S. real estate market is also still being driven in part by reactions to the pandemic, as many buyers move from urban apartments to suburban houses.
In the homebuilding sphere, many builders are capping sales to manage their costs and make sure they don’t sell more homes than they can build as high demand persists. This July we sold 12 homes in Flagstaff valued at $10.3M. Big thanks to our clients!
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 104.4%." List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property.
The median sold price in July jumped 27% year over year to $610,000, a new monthly high. Low mortgage rates have stoked the hot Flagstaff housing market for more than a year, with a shortage of inventory pushing prices ever higher.
July 2021 Flagstaff Market Watch Summary
Total Home Sales - 214 homes, down 28.7% vs July 2020.
Median Sale Price - $610,000, up 27.1% vs July 2020, highest in more than a decade
Mortgage rates - A 30-year fixed-rate mortgage rates remained virtually unchanged week over week at 2.87 percent with an average 0.7 point for the week ending August 12, 2021, up from last week when it averaged 2.77 percent. A year ago the 30-year averaged 2.96 percent.
Longest days on market (SF): 379 days This is a 2678 sq foot, 3 beds, 3.5 bath, new construction townhome in Flagstaff Ranch
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 JULY 2021
Photo courtesy of RE/MAX Fine Properties
- Two luxury homes in Pine Canyon sold for $2,850,000. 2556 S Pinyon Jay Dr & 2610 E Bueno Vista Court are the highest-priced single-family Flagstaff homes that sold last month
- The highest-priced Flagstaff townhome sale was a $1,500,000 3 bedrooms, 3 baths, 3,369 sq. ft. Pine Canyon home with a separate single bedroom and full bath casita with a private entrance.
- The highest-priced Flagstaff condo sale last month was a $350,000 impeccable 2 bed 2 baths second home in Summit Park Condos
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in JULY 2021
Photo courtesy of Village Land Shoppe
- The lowest-priced single-family Flagstaff home that sold in July was a $255,000 two-bedroom single family residence in Sunnyside
- The lowest-priced Flagstaff townhome sold last month was a $359,900 turnkey 2 bedroom, 1 bath Continental Country Club home.
- The lowest-priced Flagstaff condo that sold was a $199,000 one bedroom condo in University Meadows (Riordan Ranch) close to NAU, downtown Flagstaff, shopping, and entertainment
Flagstaff Home Buyer Advice
Mortgage rates have again done the incredible by dropping close to their recent record lows. Rates have fallen partly due to the Federal Housing Finance Agency abandoning its 0.5% fee on refinances. The recent decline in rates is also partly due to the economic uncertainty created by the again growing COVID-19 infections.
“It remains to be seen how long we'll be able to enjoy these rates," says Matthew Graham of Mortgage News Daily. The craziness we’ve seen in the real estate market for the last few months seems to be waning a bit.
All this means it’s an excellent time to buy a house if you’ve been considering it. These fantastic rates may not last very long, and you don’t want to miss them. Additionally, with some buyers leaving the market, that means less competition for properties.
Take a look at the homes that are available in Northern Arizona right now.
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Flagstaff Home Seller Advice
Home price growth has accelerated in the past year as buyers frantically competed for a limited number of houses on the market. Prices continue to increase and break records as strong demand collides with low supply. Sales of new and existing homes have declined somewhat in the past few months, mainly due to those sky-high prices.
The median list-to-sales ratio for the Flagstaff area is 104.4%. However, experts predict home price growth to slow by the end of the summer, as the availability of new listings helps relieve some of the pressure brought by competing buyers. Ralph B. McLaughlin, Chief Economist at Haus, Inc said, “I think it’s absolutely likely that price growth will slow throughout the end of the year, as they’re already slowing from their peak in June,” McLaughlin says. “We expect price growth to moderate to the mid-high single digits by December.”
With home supply slowly improving, those considering selling may want to get their houses on the market sooner rather than later to get the best price.
If you’re interested in knowing your home’s value in the present market based on recent sales in the Northern Arizona MLS, enter your address here to find out what your home is worth right now. 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.
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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