Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Homes Fly Off the Market, Median Home Price Sets New Records
Our monthly market update is back! More record-breaking milestones in Flagstaff real estate last month, as home sales continue to close quickly and the median price steadily increase. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US existing home sales descend 0.9% from the previous month, marking four consecutive months of decline while Greater Flagstaff's May housing sales decline 3% vs the previous month. Flagstaff home sales jumped 19% year-over-year with 162 units sold vs the same period last year according to data from the Northern Arizona Multiple Listing Service (NAAR).
Demand remains strong from first-time homebuyers, year-round residents, and NAU students competing for affordable housing.
We broke our best record May sales with 7 homes sold in Flagstaff, Tucson & Mayer valued at around $5.9M. Big thanks to our clients!
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 104.3%."
List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property. High demand & low inventory caused the median sold price in May to increase 22% year over year to $573,057, a new monthly high.
Even after more than a year in our frenzied market, home prices continue to soar, which is excellent news for those who own new and existing homes in our marketplace.
May 2021 Flagstaff Market Watch Summary
Total Home Sales - 162 homes, up 19% vs May 2020.
Median Sale Price - $573,057, up 22.3% vs May 2020, highest in more than a decade
Mortgage rates - A 30-year fixed-rate mortgage dropped to an average of 2.93% for the week ending June 17 — down from 2.96% last week, 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 MAY 2021
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in May was a $2,800,000 four-bedroom Pine Canyon custom home on an incredible golf homesite on 8 green with a stream flowing and a pond between the double fairways of 8/9.
- The highest-priced Flagstaff townhome sale was a $610,000 four-bedroom Pine Knoll townhome that offers has captivating views of the San Francisco Peaks.
- The highest-priced Flagstaff condo sale last month was a $500,000 three-bedroom unit in Flagstaff Ranch backing State Trust Land.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in MAY 2021
Photo courtesy of Coldwell Banker Northland
- The lowest-priced single-family Flagstaff home that sold in May was a $270,000 3-bedroom single family residence in the heart of Sunnyside. Home is just blocksfrom Killip Elementary school and the skate park.
- The lowest-priced Flagstaff townhome sold was a $281,500 - 2 bedroom 1 bath Christmas Tree Estates townhouse with updates throughout.
- The lowest-priced Flagstaff condo that sold was a $292,500 - lower level 2 bedroom condo in the Summit Condo community. Open floor plan with beautiful views of the community open space from the covered patio.
Flagstaff Home Buyer Advice
Record-low mortgage interest rates have made purchasing homes more affordable, even considering rising home prices. Many people have taken advantage of this and flocked away from urban centers, seeking out homes that offer more space to accommodate working remotely and spending more time at home in general.
The supply of Flagstaff homes for sale is still very limited, and inventory may only continue to shrink. High prices and high demand have contributed to the shortage. This has led to some intense multiple-offer situations, where buyers are throwing out all the stops to compete for homes, including by waiving inspections, appraisals, and other contingencies to draw the seller’s eye to their offers.
Even though homebuilders are trying their best to keep up with demand, the new home construction industry can’t fill the gap in inventory. Increased land, labor, and material costs have made building new homes difficult and expensive, even as demand continues to surge. Still, many are turning to new construction homes because the competition for existing homes is still fierce in our current market.
If buying a home is in your plans this summer, 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.
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.
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
As hectic as it sounds, this market presents some prime opportunities for homeowners to get top dollar for their properties. However, just because options are slim and demand is high doesn’t mean you can simply throw your home on the market and expect it to fetch a maximal price. Before you can figure out how much you can expect to walk away with, you’ll first need to assess how much it will cost you to prepare your home for the market.
Here’s a quick breakdown of some of the costs of selling a home:
Real Estate Commissions. Sellers are responsible for paying real estate commissions, which can range between 2.5% and 3% for your own agent, and a similar spread for the buyer’s representative.
Preparing Your Property. Though you may not need to go all out in getting your home ready for the market, sprucing things up here and there will help maximize your property’s value. For the interior, you’ll want to declutter, clean, paint, and stage; according to the NAR, buyers spend an average of 40 minutes in a staged home compared to five minutes in a non-staged home.
You’ll also want to freshen up your home’s curb appeal. The cost depends on what you need to have done. You should at least make sure that your landscaping is trimmed and neat. Spending as little as $300 on lawn care can get you an extra $1,200 when you sell.
Repairs. Though some buyers are waiving inspections to be more competitive, that isn’t typically recommended, so expect a home inspection. A good rule of thumb is to set aside 2% of your sales price to cover the cost of necessary repairs that may come up on your inspection report.
Closing Costs. As a seller, you’ll be expected to pay a few different fees at the closing table, including title fees, transfer taxes, escrow fees, and miscellaneous taxes and dues. Plan to spend around 8% and 10% of your sales price on these seller expenses, though you may spend less than that.
The bottom line is that now is an excellent time to be a seller. The market leans heavily in your favor, and with just a little time, investment, and guidance from an experienced real estate professional, you can get the absolute best price for your home.
If you're curious about 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.
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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