Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Group Brokered by eXp / by Joselyn Uy
Spring Rush Came Early to Flagstaff, Home Sales Surge in March
Hello spring! Flagstaff Home Sales are up, prices are too, and days on the market are down. Here's our latest update
FLAGSTAFF HOME SALES
The US Existing-Home Sales Slip 2.7% in March while Greater Flagstaff's housing sales surged 42.7% from February according to data provided by the Northern Arizona MLS. There was a total of 127 homes sold, which is down 15.9% from a year ago, the highest recorded March sales.
"The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power," said Lawrence Yun, NAR's chief economist. "Still, homes are selling rapidly, and home price gains remain in the double-digits."
FIRST QUARTER 2021 HOME SALES DOWN
The first quarter home sales are historically the slowest of the year. There were 324 units sold and this is down 8.7% from 355 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.
In the month of March, the Broaddus Properties Group Brokered by eXp Realty sold two properties in Northern Arizona valued at over $600K. Big thanks to our Flagstaff and Parks clients. Last year we helped buy and sell 8 homes worth $3.3M+.
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 101.5%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
The median sold price in March is up 31.2% year over year to $697,150, a new monthly high. Homes remained on the market for an average of 35 days. This is much faster than the 42 days we saw in February, and faster than the 43 days we saw a year prior. This is welcome news for home sellers, which shows that overall demand remains historically high.
March 2022 Flagstaff Market Watch Summary
Total Home Sales - 127 homes, down 15.9% vs March 2021.
Median Sale Price - $697,150 up 31.2% vs March 2021, highest in more than a decade
Mortgage rates - Average 30-year fixed-rate mortgage rate ended 4/19 at 5.27%. Rates 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): 381 days This is a newly built custom 4-bedroom home in Flagstaff Ranch with decks and a walkout basement. Nestled on large lot with beautiful ponderosa pines.
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'S PRICIEST HOMES SOLD in MARCH 2022
Photo courtesy of Realty One Group, Mountain Desert
- The highest-priced single-family Flagstaff home that sold in March was a $2,210,000 six-bedroom on over 5 acres located in Saskan Ranch, a short drive to Downtown Flagstaff. This luxury home boasts a full-sized sand volleyball court, playhouse, in-ground pool with spa and rock waterfall.
- The highest-priced Flagstaff townhome sale was a $775,000 luxury 3-bedroom townhouse in Pinnacle Pines located on a private cul de sac with mountain views and oversized backyard.
- The highest-priced Flagstaff condominium sale was a $401,000, two-bedroom, Summit Park condo with Carport parking and views of beautiful pines.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in MARCH 2022
Photo courtesy of RE/MAX Fine Properties
- The lowest-priced single-family Flagstaff home that sold in March was a $299,000 two-bedroom Mountain View Ranchos fixer-upper on 2.05 acres that is zoned AR, allowing for many uses. No HOA. There is a barn with 4 storage sheds and corral.
- The lowest-priced Flagstaff townhome that sold last month was a $275,000 two-bedroom Sunnyside townhome with mountain views and proximity to hiking trails, downtown Flagstaff, Buffalo Park, hospital
- The lowest-priced Flagstaff condominium sold was a $250,000 one bedroom The Village (Litzler Lane) unit on Building #10. Located next door to community gym, mail, and activity space. Close to Northern Arizona University, shopping, restaurants, trails, hiking, and biking.
Flagstaff Home Buyer Advice
There are several different issues facing homebuyers these days. For example, due to pandemic-related economic issues and the tragic collapse of a condo building in Surfside, Florida, new adjustments have been made to mortgage rules and regulations for condos nationwide. Extra due diligence is required from lenders for approving condo units for conventional loans.
Additionally, condo associations for buildings that were built 20 or more years ago that have deferred maintenance, building inspection findings, or jurisdictional findings are under increased scrutiny. The purchase of older condos may be more difficult and expensive for buyers.
Another thing to know is that because of the expanded pool of second-home buyers, mortgages for high-balance loans and vacation home loans will have an extra fee as of April 1, 2022. For high-balance loans, borrowers will pay between 0.25% and 0.75% of the loan amount. For second-home loans, borrowers will pay 1.125% to 3.87%.
This updated fee structure is meant to increase the capital available to Fannie Mae and Freddie Mac to help first-time buyers and low-income households. This comes at a time when record-high home appreciation and reduced purchasing power make it difficult for these groups.
Other changes include the fact that additional COVID-related paperwork is no longer required for self-employed borrowers. Two years of tax returns can be used instead. Additionally, loan applicants without a robust credit history can now use on-time rent payments to build their credit and get a better loan.
Even with an outstanding credit score, this seller’s market can be frustrating to navigate if you’re a buyer. Sustained strong buyer demand, low inventory, record-high price appreciation, rising mortgage interest rates, and diminishing affordability have made purchasing a home more competitive than ever.
To combat inflation, the Federal Open Market Committee is raising the federal funds rate, which will reduce demand for big-ticket items typically financed by debt. However, as mortgage interest rates increase, buyer affordability declines, and with appreciation being as high as it is, this loss of buying power is felt hardest by first-time and lower-income buyers.
So, what can you do to combat this?
- First, keep your credit score clean and, ideally, increase it. Consider the aforementioned on-time rent payment credit building programs. A higher credit score will always help you secure a better loan.
- You should also try to keep your housing costs to no more than 20% of your income. This will stress-test your budget and cash flow and help you understand if this is feasible.
- Additionally, after you purchase, be very patient with spending, and overestimate what you think you’ll need for expenses like furniture, yard maintenance, and repairs. These tips will make your experience a lot smoother.
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
Today, there are far more buyers looking for homes than sellers listing their houses. Here are the maps of the latest buyer and seller traffic from the National Association of Realtors (NAR) to help paint the picture of what this looks like:
Notice how much darker the blues are on the left. This shows buyer traffic is strong today. In contrast, the much lighter blues on the right indicate weak or very weak seller traffic. Briefly, the demand for homes is significantly greater than what’s available to purchase.
What That Means for You
If you want to take advantage of this market and extract as much value out of your property as possible, now is the time to sell. Selling when demand is high, and supply is low sets you up for a big win.
Last year was a hot sellers’ market. This year, inventory is even lower, and that means an even bigger opportunity for you. Even though finding your next home in a market with low inventory can be challenging, is that concern worth passing on some of the best conditions sellers have ever seen?
A skilled agent can help you capitalize on the fantastic opportunity you have as a seller today and guide you through the buying process until you find the perfect place to call your next home.
If you’re ready to move, you have an incredible opportunity in front of you today. Trust the experts. Let’s connect so you have expertise on your side that can help you win when you sell and when you buy.
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.
You Might Be Interested In: