Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Cheap Mortgage Rates Tempt Home Buyers, Flagstaff Home Sales Boom in June
I hope that you're well and having a safe summer. As we hit the dog days of summer, June certainly heated up in the housing market. Here's the latest update on the Flagstaff.
FLAGSTAFF HOME SALES
June saw a historic turnaround as stay at home orders around the country were lifted. The US existing home sales rose sharply by 20.7% in June vs the previous month after 3 straight months of decline due to the ongoing pandemic. Meanwhile, housing prices and sales in the greater Flagstaff region hit new highs for the first half of 2020. Greater Flagstaff's housing sales surge nearly 77% with 235 homes sold from 133 in May 2020, according to the latest data compiled from the Northern Arizona Multiple Listing Service. One year ago (June 2019), there were 149 homes sold, this year home sales climbed by almost 58% after slowing down for 2 straight months. See the breakdown below.
(Figures include Other Areas, Williams, Parks homes on the Northern AZ MLS)
Here's why home sales are up:
PENT UP DEMAND
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, NAR’s chief economist. Who are these buyers?
- They are millennials hitting their 30s want to settle down
- Stronger demand for larger spaces as more and more people work from home and desire to move away from crowded cities to avoid exposure to the coronavirus.
- Investors
VERY CHEAP MORTGAGE RATES
The 30-year mortgage rate at 3% provides an extra $100 to $300 of saved monthly housing costs, tempting borrowers
MOVE TO LESS RISKY INVESTMENT
Some investors have pulled out of unpredictable and risky stocks and are putting money in real estate
JOB GROWTH SURGE
Many jobs coming back where there had been temporary unemployment situations
Our team had a very productive 1st half selling over $22M of Flagstaff and nearby area real estate. The Kelly Broaddus Real Estate Advisors Team sold 38 properties in 6 months! In the month of June, we helped 9 sellers and buyers achieve their real estate goals with 8 homes sold over $9.9M.
FLAGSTAFF MEDIAN HOME PRICE
A new price record is set for the month of June. The median sales price for June 2020 came in at $474K up 7% from the same period last year. The previous high of $442K was set last year.
DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE
June 2020 Flagstaff Market Watch Summary
Total Single Family Home Sales - 167 homes, up 64% vs June 2019.
Median Home Price - $468,750, up 1.9% vs June 2019
Mortgage rates - 30-year fixed-rate mortgage rose 3.01% for the week ending July 24th after falling to 2.98%, the lowest ever in 50 years.
Longest days on market (SF): 837 This is a 4-bedroom home with expansive golf course views situated in a cul-de-sac. Located close to the practice tee in Forest Highlands
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 JUNE 2020
- The highest-priced single-family Flagstaff home that sold in June was a $3,750,000 160-acre site on historic Hart Prairie Rd with a rustic cabin and pump house. Listed & sold by our very own Kelly Broaddus!
- The highest-priced Flagstaff townhome sale was a $1,100,000 luxury townhome that backs to the golf course and boasts fairway views on both the main and lower levels. This multi-level Elk Pass Townhome in Pine Canyon has 4 bedrooms, 4 bathrooms.
- The highest-priced Flagstaff condo sale was a $350,000 three-bedroom unit in beautiful gated Flagstaff Ranch, sold with furniture and decor
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in June 2020
Photo courtesy of Better Homes and Gardens Real Estate Grand View North
- The lowest-priced single-family Flagstaff home that sold in June was a $204,500 2-bedroom mid-century ranch in Grandview Homes, located in the northeast section of Flagstaff
- The lowest-priced Flagstaff townhome that sold was a $226,031 2-bed, 1.5 baths end unit in Arroyo Seco Townhomes in Sunnyside, just steps away from Ponderosa Recreation Center.
- The lowest-priced Flagstaff condo that sold was a $155,000 Riordan Ranch (University Meadows) one-bedroom unit tucked in the closest building near NAU.
Flagstaff Home Buyer Advice
Much of the housing market shut down entirely in April. Since this is normally the hottest part of the year for real estate, there is a tremendous amount of pent-up demand. Mortgage rates continue to hit new record lows. The 30-year fixed mortgage rate currently stands at 3.13%, more than a half percent lower than a year ago.
Not surprisingly, this is creating even more demand, as buyers seek to take advantage of these historically low and favorable rates. The typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045 (see average rent prices in Flagstaff) For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher. There's only one thing standing in their way, a lack of inventory.
INVENTORY
In residential real estate, how many items are available in relation to how many consumers want to buy that item is called months supply of inventory. A normal market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.
It's a seller's market for Flagstaff homes under $600,000 however the market favors buyers in 3 high-end price ranges. If you’re buying at the lower price range, having fewer homes on the market could present a few challenges. Don’t worry MORE homes are coming into the market! We can also help you find off-market homes that are not listed on the MLS. Let's talk about your situation in person. Call Kelly at 888.446.5602.
Need a lender recommendation for your home loan? We work with trusted lenders who will walk you through the entire process and have your best interest at heart. Contact us today and we will get you one of our trusted lenders that best fits your needs.
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.
Flagstaff Home Seller Advice
Buyers are showing a greater desire for non-urban properties and rural areas are leading the way as compared to suburban and urban. The inventory of Flagstaff homes for sale was low even before the pandemic hit. It's even lower now since many sellers pulled their homes off the market and have been slow to list them once again. What does all this mean for you? We are in a strong seller's market for homes priced under $600,000 at some high-end price range.
Pent-up demand and low mortgage rates mean there are many buyers on the market. On the other hand, low inventory means much of that demand is not being met. As a result, prices are rising, bidding wars are becoming common, and homes are selling quickly. If you were to sell in the current market, you'd have a great shot at selling for top dollar and in record time.
Like I said, right now might be a unique moment. It's not clear how long this situation will last. As more sellers start listing their homes, we're likely to have some balancing out between supply and demand.
If you are considering selling your home, you can start by simply finding out what you could get for it in the current hot market. An easy way to do this is with the following home value calculator, which takes into account recent area sales. Click below and Enter your address to find out what your home is currently worth
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.
If you have any questions, give me a call at 928-606-6749. I'm talking to buyers and sellers all day long, and I have a great feel for changing market conditions, which I am happy to share with you.
LET'S CONNECT TODAY!
Whether you connect by phone or video chat, we can help you understand how to safely navigate the housing market so that you can prioritize the health of your family without having to bring your plans to a standstill. Give us a call at 888.446.5602 or email kelly.broaddus@exprealty.com. Whether you’re looking to buy or sell, we know the best protocol as well as the optimal resources and lenders to help you through the process in this fast-paced world that’s changing every day.
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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