Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Home Sales & Prices Slide in October
Happy Thanksgiving Flagstaff! Heavy snow and blowing snow is expected, I figured a lot of people would be hunkered down inside today. Stay safe and warm! I would like to share a quick update on the Flagstaff housing market before we all go on vacation for Thanksgiving.
FLAGSTAFF HOME SALES
The US Existing home sales climb by 1.9% in October 2019 while the Flagstaff real estate home sales declined 19% vs September 2019 numbers. We typically expect to see a seasonal slide in inventory and buyer activity in the 4th quarter of the year and this year does not look any different. October housing sales in the greater Flagstaff region remain relatively flat compared to the same month a year ago. There were 110 single-family houses sold in October vs 112 in October 2018.
While Flagstaff home sales are slightly down, this is the 2nd best October sales in the last 5 years for the Kelly Broaddus Team with 7 closings at over $2.5M. 2014 was our best year at 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 MEDIAN HOME PRICE
Greater Flagstaff's October housing prices hit a new monthly high with the median sale price coming in at $426K which is up 6% from the same month last year. The average price paid per square foot was $232 up 10%. The big news, year to date through October, prices have risen 10% from a year ago.
EXCITING NEWS!! FHFA (Federal Housing Finance Agency) announced Tuesday that loan limits will be increasing on January 1. Following a decade of zero changes in the loan limits, the last four years have ALL seen an INCREASE in allowable loan limits.
This is STRONG NEWS for ALL homebuyers and homeowners as it reflects FHFA’s view that housing values have been increasing in the past, remain healthy in the present, and are also anticipated to continue to grow.
The full announcement may be seen here: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2020.aspx
In short, a few key details pertaining to Coconino County are:
- Conventional loan – limit for 1 unit properties increased to $510,400
- VA & FHA – have not yet announced but traditionally follow with an increase when Conventional does
October 2019 Flagstaff Market Watch Summary
Total Home Sales - 110 homes (SF), up 1% vs October 2018.
Median Home Price - $426 (SF), up 6% vs Octoberber 2018
Mortgage rates - Today, the average U.S. rate for a 30-year fixed mortgage is 3.7%
Longest days on market (SF): 474 Days That's just a year and 3 months on the market! This listing is a 4 bedroom Forest Highlands home with multiple living and dining areas and Trex deck perfect for entertaining.
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 2019
- $2,075,000 - Pine Canyon luxury home with 7 bedrooms and 6 baths, over 5,000 sqft of living space, boasting panoramic San Francisco Peaks, golf course and water views.
- $875,000 - Last month's priciest townhome is another luxurious Pine Canyon property boasting 5 bedrooms, gated courtyard, and a separate casita.
- $375,000 - 2 bedroom condo with loft and attached garage in Flagstaff Townsite, walking distance to downtown
The most AFFORDABLE Flagstaff Homes Sold in OCTOBER 2019
- $158,000 - The most affordable single-family Flagstaff home that sold in October is located in the Flagstaff Old Town area (La Plaza Vieja). Home is a teardown but the value is in the lot.
- $218,000 - A 3 bedroom townhouse with loft and hardwood/ceramic tiles throughout, located in Christmas Tree Estates
- 100,900 - University Meadows one-bedroom unit close NAU, shopping, hiking, and minutes from downtown.
Flagstaff Home Buyer Advice
“With only a 3.5% down payment, and as low as a 580 FICO score with a debt-to-income ratio as high as 50% you can buy a home using a FHA/VA mortgage. In many cases, renters aren’t aware of how much mortgage credit is open to help them pursue the American Dream, and instead are absorbing higher annual housing costs, which can be a difficult cycle to break out of for many young consumers.” – Ivy Zelman, CEO Zelman Associates
If you’re looking to buy a home, now is a great time to lock in a low mortgage rate. It will shrink your monthly payment and could save you a bundle over the long term. Or if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.
Move-up buyers, if you’re ready to trade in your starter home for something more luxurious, you may get the best of both sectors. We’re still witnessing a strong demand for entry-level homes, giving sellers the upper hand.
Luxury buyers, buyers of high-end homes are finding a greater selection (and more negotiating power) than they’ve had in years.
FLAGSTAFF HOUSING SUPPLY
Flagstaff inventory has been going down over the last three months too. 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. Let's talk about your situation in person! Call Kelly at 888.446.5602
Flagstaff Home Seller Advice
Year over year, the gap between what we’re listing this year versus last year is getting worse. We need affordable listings desperately. Right now, Flagstaff has less than 2.7 months of supply of homes for sale under $600,000.
Sellers typically list during the months of April to June where the supply of homes is around 5 months. Here's why you need to list now instead of waiting until the spring:
- Less competition means you are going to get more money for your house and have fewer hassles in selling the house
- New construction - New building permits, building permits for new construction, newly constructed homes, are up 7.7 percent over this time last year. Guess what. Many of those houses are going to be built this spring
The ‘sweet spot’ for the seller is right now from now all the way through March. Without an inventory, two things can happen. Number one is we have fewer sales and number two prices will start to reaccelerate. Now, I know for the sellers, that’s a good thing, but for the overall housing market, the moderation in prices actually caused a drive of buyers to the market.
GET IN TOUCH
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. Let’s get together to determine the specific options available for you and your family. Contact 928.606.6749 or email email@example.com 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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