Flagstaff AZ Real Estate Market Data Provided by The Broaddus Properties Group Brokered by eXp / by Joselyn Uy
July Flagstaff Home Sales Second Lowest in 10 Years
The good news: Mortgage rates are down from its June high. Some recent potential home buyers who were pushed out of the market may now be able to get back in and qualify for a mortgage. Here's our latest update.
FLAGSTAFF HOME SALES
The US Existing-Home Sales Retreated 5.9% in July while Greater Flagstaff's housing market posted a 17.9% decline from June according to data provided by the Northern Arizona MLS. There was a total of 138 homes sold, 36.1% lower than a year ago. This is the second lowest total reported in July since 2012.
"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR Chief Economist Lawrence Yun. "Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers."
In the month of July, the Broaddus Properties Group Brokered by eXp listed and sold three properties in Flagstaff valued at over $1.7 Million. Last year we helped buy and sell 12 homes worth $10 Million+!
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 102.6%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
The median sold price in July is up 19.7% year over year to $730,000, highest in more than a decade. Homes remained on the market for 53 days (median). This is much slower than the 43 days we saw in June and the 44 days we saw a year prior.
The National Association of Realtors is predicting around a 5% correction on home prices that starts in Q4 of this year and extends into Q1 of next year. According to the latest forecasts, experts are confident prices will continue to appreciate this year, although at a more moderate rate than they did in 2021. Median prices are expected to shoot back up around 9% in Q2 of 2023.
JULY 2022 Flagstaff Market Watch Summary
Total Home Sales - 138 homes, down 36.1 % vs July 2021.
Median Sale Price - $730,000 up 19.7% vs July 2021, highest in more than a decade
Mortgage rates - Average 30-year fixed-rate mortgage rate ended 8/18 at 5.5%. Rates peaked at 6% in June. Now we are seeing a lot of volatility. It can change rapidly during the day, and massively from week to week even though they can also be very boring for months on end.
Longest days on market (SF): 641 days This is a brand new home in Pine Canyon with 3 bedrooms and 3.5 baths
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 home.
- The Flagstaff single-family luxury market is a Seller's Market with a 26% Sales Ratio.
- Homes sold for a median of 99.63% of list price in July 2022.
- The most active price band is $1,000,000-$1,099,999, where the sales ratio is 100%.
- The median luxury sales price for single-family homes is $1,192,500.
- The median days on market for July 2022 was 56 days, up from 35 in July 2021.
FLAGSTAFF'S PRICIEST HOMES SOLD in JULY 2022
Photo courtesy of RE/MAX Fine Properties, Jamie Wong
- The highest-priced single-family Flagstaff home that sold in July was a $2,000,000 five-bedroom luxury mountain home in Pine Canyon located close to the entry of the community & off of the 11th fairway of the golf course.
- The highest-priced Flagstaff townhome sale was a $1,160,000 2-bedroom, 1,755 sqft single-level luxury townhouse in Pine Canyon that boasts 2 baths, and an open living space.
- The highest-priced Flagstaff condominium sale was a $992,344 three-bedroom, new construction in Pine Canyon. There are two separate bedroom suites and a separate guest casita.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in JULY 2022
Photo courtesy of RE/MAX Fine Properties, Dianne Patterson
- The lowest-priced single-family Flagstaff home that sold in July was a $225,000 home in Ponderosa Park. The house has three bedrooms and is ready to renovate. Cash sale.
- The lowest-priced Flagstaff townhome sale last month was a $284,900 two-bedroom remodeled townhome in Sunnyside with mountain views. Close to hiking trails, downtown Flagstaff, Buffalo Park, hospital.
- The lowest-priced Flagstaff condominium sold was a $287,900 one bedroom unit with views off the back patio, located in highly sought-after University Heights area
Flagstaff Home Buyer Advice
Homebuyers may be in a better position to move now. If you tapped out earlier this year due to the extreme bidding wars it is a great time to go back on your home search and work in a much less competitive environment.
If you already own a home, you’ve likely built-up significant equity, and that can help you fuel your next move. Whether you want to downsize, move closer to loved ones, or buy a home in a dream destination, your equity can help get you there. It may be some (if not all) of what you’d need as your down payment on a home that better fits your changing needs.
Northern AZ Housing Inventory
End of July we have 36% more active listings compared to July 2021. However, comparing 2022 to 2021 year to date, inventory actually declined by 4%.
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:
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
The market is cooling off but we are still on a seller market. It's time to reset expectations to days on market. Heading back to school and into fall, days on market has the tendency to grow even more. Sellers late to the market in the summer months are more likely to spend longer on the market, make price reductions and sell at lower prices than spring sellers.
Are you worried home prices are going to decline? Many experts raised their forecasts to say they’ll continue to appreciate in most markets this year. They are confident the housing market will see ongoing appreciation because of supply and demand in most markets. As Bankrate says:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
"We're witnessing a housing recession in terms of declining home sales and home building," Lawrence Yun, NAR Chief Economist. "However, it's not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price."
The market might be slowing, but it is still a very good time to sell your home. If these trends continue, now may be your last chance to sell near peak demand and get the most for your home.
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 email@example.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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