Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff 2019 Spring Selling Season Slow Start
I hope that you’re enjoying the first full month of spring! Sales of Flagstaff homes continue to disappoint in March. There are reasons for optimism however as we head into the second quarter.
- Interest rates are now lower at 4.2% than last year at this time when rates were at 4.4%.
- The stock market has fully recovered. The S&P 500 is at all time high while Nasdaq is up 23% this year. 401ks are looking much better.
- 23% Improvement in pending contracts.
Here are last months figures for Flagstaff.
FLAGSTAFF SINGLE FAMILY HOME SALES
US Existing Home Sales dropped 4.9% in March while Greater Flagstaff's March housing sales both the quarter and the month of March were down big. For the 1st quarter, there were a total of 152 single-family home sales, down 28% and for March there were 69 sales, down 24%. This sales drop could be attributed to an inventory shortage and not necessarily any lack of demand. The Flagstaff 1st quarter home sales are historically the slowest of the year.
Jan - declined 48% Feb - declined 6% March - declined 24%
The number of business days in a given month matter too. In March 2019, there are only 21 business days vs 22 in March 2018.
It was about business as usual for the Kelly Broaddus Team, with 3 buyers closing on their dream homes.
FLAGSTAFF MEDIAN HOME PRICE
US Median home prices were up 3.8% over last March at $259,400. This marked the 85th consecutive month with year-over-year price gains. Meanwhile, March was basically flat in Flagstaff with a median sale price of $387,000.
Housing prices in the greater Flagstaff region did hit another new high. The median sale price for the 1st quarter came in at $401,250 up 6% from the same period in ’18. This is the highest quarterly median sale price ever and the very first time above $400K.
March 2019 Flagstaff Market Watch Summary
Total Home Sales - 69 homes (SF), down 24% vs March 2018.
Median Home Price - $387,000 (SF), flat vs March 2018
Mortgage rates - A 30 year fixed rate mortgage with 5% down and very good credit is now at an average of 4%
Longest days on market (SF): 836 days. A 4 bedroom, 2,617 sqft home. Brand New single level construction in the heart of Continental Country Club. That's more than 3 years and 3 months, folks!
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 March 2019
- $1,700,000 - This rural luxury home located northwest of downtown is our most expensive Flagstaff home that sold in March 2019. It is the first time a home in Hidden Hollow made it to the top of our list.
- $477,000 - Last month's priciest townhome is a 4 bedroom luxury townhome in the Pine Knoll area near NAU and Aspen Place shopping.
- $254,000 - 2 bedroom unit in Summit Park Condos, located southeast of downtown Flagstaff
The most AFFORDABLE Flagstaff Homes Sold in March 2019
- Single-family - $130,000 - 2 bedroom off grid Alpine Ranches home located in Leupp/Winona area, east rural Flagstaff
- Townhouse - $265,000 - fantastic 2 bedroom Railroad Springs Townhomes end unit
- Condo - $165,000 - 2 bedroom Pine View Village condo in Sunnyside
Flagstaff Home Buyer Advice
It appears that the US spring buyer market is going to be stronger than many have projected. According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”
Here's the low down in Flagstaff:
- Home prices have NOT fallen. 1st quarter figures are up 6% vs last year. With demand for affordable Flagstaff homes still exceeding supply, we may not see home prices go down. 2018 was a record-setting year with housing prices hitting new highs, this year we are still expecting to see normal price appreciation.
- Mortgage rates are once again on the rise after hitting a 12 month low. Our advice: Lock in the low rates while you can. If the lower rate environment persists, we are in for a great spring home buying season. Here's what you need to know about the mortgage process.
- Supply of affordable homes is still low. Inventory levels are rising but we’re still at four months inventory at the under $500K price range, meaning we’re still in a sellers’ market.
End of March 2019 inventory actually declined for homes under $300K. Check out the latest list of Flagstaff homes for sale under $300K
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 Kelly today and we will get you one of our trusted lender that best fits your needs.
Flagstaff Home Seller Advice
Maybe you have outgrown your current house. Maybe you are wanting to be closer to family and friends. Maybe the Flagstaff home that you love is becoming a burden to clean now that the kids have moved out.
Let's talk about pricing. Home prices are still up across the country and in Flagstaff based on first-quarter figures. There’s no depreciation projected by any of the major projectors or predictors of where prices are going to be going. We are going back to normal appreciation which is about 3.6 % (pre-bubble, country). If we look at the latest Case-Schiller projection below, Arizona will have a strong appreciation as like most states.
There are less than 2 months of inventory in the under $300K price range. It's a great time to sell if you have a starter home. If you’re thinking about selling now, let’s get started. From hiring the right real estate agent to handing over the keys, here is your step by step guide to the home selling process.
We are your Flagstaff home experts! Contact 928.606.6749 or email firstname.lastname@example.org if you are looking for a Northern Arizona realtor to help you buy/sell your Flagstaff/Sedona real estate and the surrounding areas.
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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