Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Home Buyers Are Paying Way Over Asking Price, Home Prices on Record High
Sales are up, homes are selling faster and for more than the asking price. March signal the start of the spring homebuying season and more luxury/vacation/second home buyers are actively looking. This year’s spring home-buying season is set to be one of the most competitive ever, as the pandemic continues to fuel demand in homeownership. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US existing home sales descend 3.7% from the previous month, marking 2 consecutive months of decline while Greater Flagstaff's March housing sales surge 43% vs the previous month. According to data from the Northern Arizona Multiple Listing Service (NAAR), Flagstaff home sales jumped over 10% with 150 units sold vs the same period last year when there were 133.
"This is being driven by an improving job market and strong demand from first-time homebuyers, as well as mortgage rates—which remain quite low from a historical perspective, even with the recent increases," Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association.
Seasonal visitors are purchasing second homes near the beautiful snow-covered mountains and Ponderosa pines in Flagstaff.
“Remote work arrangements have made it possible for some wealthier Americans to move to alternate locations that are not just small, suburban shifts from within their current metro area. More fundamentally, second home demand may also be benefitting by an acceleration of retirement plans, as well as stock market gains.” National Association of Home Builders
Demand remains strong from first-time homebuyers, year-round residents, and NAU students competing for affordable housing.
FIRST QUARTER 2021 HOME SALES FLAT
The 1st quarter home sales are historically the slowest of the year. First-quarter 2021 home sales in the greater Flagstaff region was 355, flat compared to 354 from a year ago, the most ever for the first quarter.
Home sales usually dip in the winter before climbing in the spring as families try to settle in before starting a new school year, but some would-be sellers are staying put because housing prices and interest rate increases have reduced their ability to buy their next homes. Since finding and buying a home is such a challenge, sales lagged a bit at the start of the quarter.
The Kelly Broaddus Team still posted our best March sales with 6 homes sold valued at around $2.4M.
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 102.2%."
Low inventory caused the median sold price in March to increase 27% year over year to $531,500, a new monthly high.
March 2021 Flagstaff Market Watch Summary
Total Home Sales - 150 homes, up 12.8% vs March 2020.
Median Sale Price - $531,500, up 26.7% vs March 2020, highest in more than a decade
Mortgage rates - A 30-year fixed-rate mortgage dropped for the first time since early February to an average of 2.97% on April 22nd, giving some borrowers another shot at sub-3% rates.
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 2021
Photo courtesy of Dana Hubbell Group
- The highest-priced single-family Flagstaff home that sold in March was a $3,227,500 four-bedroom off-grid, SMART, luxury home on 35+ acres in the Hart Prairie Area
- The highest-priced Flagstaff townhome sale was a $1,450,000 four-bedroom Pine Canyon luxury townhome that offers unobstructed views of the Coconino National Forest.
- The highest-priced Flagstaff condo sale last month was a $1,050,000 three-bedroom unit in Pine Canyon perfect for a private getaway, or entertaining friends and family.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in MARCH 2021
Photo courtesy of Realty One Group, Mountain Desert
- The lowest-priced single-family Flagstaff home that sold in March was a $268,000 property in the Cosnino Road Area that is zoned both residential & commercial, that boasts of a log cabin, warehouse, and several storage sheds
- The lowest-priced Flagstaff townhome sold was a $259,000 - 1 bedroom 1 bath Continental Country Club Upgraded single level Townhouse with nice views surrounded by green space and trees.
- The lowest-priced Flagstaff condo that sold was a $195,000 - 682 sqft Woodlands Area (Arbors) 1 bedroom unit. The Abors offers 2 clubhouses, a jacuzzi, and a fitness room.
Flagstaff Home Buyer Advice
If you’re thinking of buying a home this spring, two important questions need to be answered:
1. Should you strive to put down 20% to buy?
In short, if you want to spend less overall on your mortgage, you should try to make a down payment of 20% (or more, if you can). Not only will you be able to secure a smaller mortgage loan, but you’ll also pay less interest over time, have lower monthly payments, and have great loan options and terms.
The real advantage of putting 20% or more down in this historically strong seller’s market, though, is that it gives you greater purchasing power. With a higher down payment, you can afford to buy a more expensive home.
That said, there’s a reason the majority of recent buyers aren’t putting down 20%. Not everyone can afford to do so. If you count yourself in that category, don’t worry. Many lenders have loan products that allow you to pay as little as 3%—and sometimes even 0%—down.
2. If you’re able to pay cash, how much does that matter in a bidding war?
It matters a lot, actually. In fact, homebuyers who make all-cash offers improve their chances of winning a bidding war by a whopping 290%. Just because you make an all-cash offer, though, doesn’t mean you can go below the asking price. Our market is so competitive that any lowball offers in a multiple-offer situation will almost certainly be discounted.
As long as inventory is this low, cash is king. However, more Americans receiving the COVID-19 vaccine means more lumber mills reopening, which means the number of new construction homes should increase and provide relief to this inventory shortage.
If buying a home is in your plans this spring, beginning your home search now could lead to a successful and less stressful buying experience. You can get a jump on the spring market by taking a look at the homes that are available in Northern Arizona right now.
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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 lenders that best fits your needs.
Flagstaff Home Seller Advice
“For sellers, getting in early optimizes odds of a quick sale at a good price before there’s too much competition, but that means acting now … In this environment, sellers probably really can’t go wrong, and that’s especially true in the nation’s hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.” -Daniel Hale, Chief Economist at Realtor.com
If you are thinking of selling your Northern Arizona home this summer, you will likely get the highest price ever for your home. Just these past 3 months in Flagstaff, we’ve seen the median sold price rise an average of 27.5%!
With this shortage of homes, we have several home buyers willing to pay “whatever it takes” to get into a bigger home in a desirable location since so many people are working from home.
I may be able to arrange an off-market sale so you can skip the strangers walking through your home while still getting full market value - at your price.
If you'd like to get an idea of what your home is worth right now, you can use our home value calculator, which is based on recent Northern Arizona MLS sales. Click the image below then enter your address to find out what your home is currently worth.
The No. 1 concern I’m hearing from my seller clients, however, is “Where will I move if I sell now?” I have the solution to this very problem – few people know about it…
I work with a lender who can likely get you a “bridge loan”. For a few thousand dollars of interest (well spent), you can get cash upfront to buy your next home now without selling your current home first. Yep, it’s actually possible to sell your house after buying now.
This allows you to make an all-cash offer to beat out every other buyer who is subject to getting a mortgage and skip the hassle of timing your closing dates. You simply move into your new home and then we sell your old home – it’s what the super-rich do, but now it’s possible for you.
This is how smart sellers are buying their next home in this hot market. You get the certainty of buying the new home you want first and then being able to sell after.
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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