Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
October 2018 Flagstaff Home Sales
We hope that you had a wonderful Thanksgiving and that your holiday season is off to an incredible start. As we approach the end of the year, US home sales are up after 6 consecutive months of decline while The Flagstaff market declined for the fourth straight month. Looks like the slow season for the Flagstaff real estate market came early. Expect more softening in the Flagstaff market during the holidays. Here are our latest market stats.
OCTOBER HOME SALES TUMBLE
In October there were 109 units sold, off 11% from the same month a year ago. After starting off red hot in the first half of the year, Flagstaff housing sales for the second half of the year are down 15% reflecting the dramatic rise in mortgage rates which hit a 7-year high.
While Flagstaff home sales are down, this is the 2nd best October sales in the last 5 years for the Kelly Broaddus Team with 8 closings at over $2.5M. 2014 was our best year with almost $4M. Homebuyers have not disappeared, numbers are actually greater than the same month last year but there simply is not enough inventory at their price range.
FLAGSTAFF HOME PRICE
October housing prices in the greater Flagstaff region rose 3.5% with the median sale price coming in at $390K which is a record high for the month of October. The previous high was set back in October of 2006 when the median sale price was $387K.
While no one can predict the future with certainty, most experts expect to see modest growth in the U.S. housing market for the remainder of this year and next.
Flagstaff Home Buyer Advice
Great news for buyers! The Federal Housing Finance Agency (FHFA) announced the 2019 general and high-cost area loan limits. The maximum loan limits will increase in 2019; details are available in Lender Letter LL-2018-05.
The new base loan limit in most of the country will be $484,350
This represents a 6.9% increase over the 2018 limit.
The ceiling limit for most high-cost areas will be $726,525
Additional information and updated resources, including the Loan Limit Look-Up Table, are available on the Loan Limits page.
The national average for a 30-year fixed-rate loan is 4.9 percent, a full percentage point higher than it was a year ago. Buyers that are out there right now and the only thing holding them up is the house to buy, as inventory increases that will help both first-time buyers and move up buyers.
Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. Inventory level for starter homes is down a bit vs last month and is still far from what is needed to satisfy the demand for affordable/starter home where homebuyer demand is strongest.
- $200k- $400K, inventory is 13% lower vs last month, less than 3 months supply. It's a seller's market at this price range. A balanced market has 6 months supply of homes for sale.
- $400K- $500K, down by 18 %, only 3 months supply.
- Above $500K, we have over 6 months of supply. No shortage here. Oversupply is highest at $1M - $1.1M and $1.2M - $1.3M
If you’re buying at the lower price range, having fewer homes on the market could present a few challenges. Don’t worry! I can help you come up with a strategy to find your next home. With winter right around the corner, expect to see quite a few more price reductions as sellers become more willing to negotiate.
Flagstaff Home Seller Advice
Many sellers believe that spring is the best time to place their homes on the market because buyer demand traditionally increases at that time of year, but what they don’t realize is that if every homeowner believes the same thing, then that is when they will have the most competition!
Our advice to home sellers:
Do necessary upgrades and list before the summer selling season begins. The #1 Reason to List Your Home in the Winter Months is Less Competition!
October 2018 Flagstaff Market Watch Summary
Total Home Sales- 109 homes, down 11% vs October 2017.
Median Home Price- $390,000 up 3.5% vs October 2017
Mortgage rates up - A 30 year fixed rate mortgage with 5% down and very good credit rose to an average of 4.91% after pulling back a little at Thanksgiving week
Longest days on market: 753 days. Flagstaff Ranch masterpiece with incredible golf course views tucked in next to the 15th tee box. Priced in the low 800's, this luxury home stayed on the market for a little over 2 years before it sold. Flagstaff luxury homes at this price range typically stay on the market for 7-8 months on the average.
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 October 2018
- $1,725,000 - Last month's #1 most expensive Flagstaff single-family home was a Forest Highlands luxury home with 4 bedrooms, 4.5 baths. Originally priced at 2.2M, this single-level masterpiece was on the market for 404 days before it got snapped up by the lucky buyer.
- $668,363 - Switzer Mesa townhome with stunning Mt Elden & San Franciso Peaks views is#1 on the list of the priciest townhome sold in October 2018.
- $415,000 - This Aspen Shadows condo in Flagstaff Ranch, with views of the golf course and the lake, is the priciest condo sold in October 2018. Price does not include golf membership.
The most AFFORDABLE Flagstaff Homes Sold in October 2018
- Single-family - $85,000 - Off-grid cabin on 40 acres in Alpine Ranches, a rural area located east of downtown Flagstaff
- Townhouse - $240,000 - Lower Greenlaw townhome with a fenced backyard. 3 Bedroom, 2.5 Bath, 2 Car Garage
- Condo - $160,000 - Previous model 1 bedroom lower level University Heights condo Very close to NAU, restaurants and walking as well as biking trails. 24-hour privileges to the clubhouse with gym/workout equipment. All utilities except electricity, are covered by monthly HOA fee INCLUDING INTERNET!
GET IN TOUCH
Wondering what all of this means for you? Kelly would be happy to discuss these numbers along with our local market conditions with you personally. Feel free to call with any questions or for a complete home and market evaluation. Please contact us at 888.446.5602 or email firstname.lastname@example.org with any questions you might have about this report of the Flagstaff real estate market. Contact Us
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