Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Housing Market Downshifts to Fall Season
Just like the weather, the real estate market is finally starting to cool off slightly. In this fall market, we expect to see less competition among buyers, more listings, and slightly more days on market. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US Existing-Home Sales jump 7.0% in September while Greater Flagstaff's housing sales drop 11% from August according to data provided by the Northern Arizona MLS. This September saw the second-highest Flagstaff home sales activity in more than a decade. The highest on record was last year with 262 units sold.
NAR chief economist Lawrence Yun said, “Some improvement in supply during prior months helped nudge up sales in September. Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.”
This September the Kelly Broaddus Real Estate Advisors Team sold 3 homes in Flagstaff valued at $3.4M. Big thanks to our clients!
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 104.4%." List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property.
The median sold price in September is up 26% year over year to $597,000, a new monthly high. Homes remained on the market for an average of 55 days. This is down from the all-time low of 43 days we saw in March, and slower than the 52 days we saw a year prior. A lot of this change is seasonal, and some of it is buyer fatigue, but demand overall remains historically high.
September 2021 Flagstaff Market Watch Summary
Total Home Sales - 191 homes, down 27.1% vs Sept 2020.
Median Sale Price - $597,000, up 22.6% vs Sept 2020, highest in more than a decade
Mortgage rates - Average 30-year fixed-rate mortgage rate ended 10/27 at the highest levels in 2 months at 3.2%. Mortgage rates remain low and just above the all-time lows seen at the outset of the year.
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 SEPTEMBER 2021
Photo courtesy of Symmetry Realty Brokerage
- The highest-priced single-family Flagstaff home that sold in September was a $2,568,189 3 bedroom, 3.5 bathroom luxury home that is not yet under construction. Located in Pine Canyon, a stunning, 600+ acre private golf community in southwest Flagstaff. Kelly brought the buyers for this home!
- The highest-priced Flagstaff townhome sale was a $758,000 updated 3 bedroom luxury townhome with beautiful Peaks views in Switzer Mesa, just a short walk to downtown Flagstaff!
- The highest-priced Flagstaff condo sale last month was a $1,230,000 luxury “lock-and-leave” 3 bed 2 bath Mountain Vista condo with access to all of Pine Canyon’s amenities, but without the burden of maintenance that can come with a single-family home.
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in SEPTEMBER 2021
Photo courtesy of RE/MAX Fine Properties
- The lowest-priced single-family Flagstaff home that sold in September was a $237,500 off grid, one-bedroom home in Leupp/Winona on 27.96 Acres. It features solar panels, a log Building used as storage & a Tiny Home/Shed.
- The lowest-priced Flagstaff townhome that sold last month was a $250,000 one bedroom townhouse close to NAU, forest trails, shopping, restaurants and local bus stop. This townhouse is located in Christmas Tree Estates.
- The lowest-priced Flagstaff condo that sold was a $188,000 one bedroom Timberline Place condo offering Mt. Elden Views
Flagstaff Home Buyer Advice
While spring and summer are the seasons that typically see the most buyer activity and competition, Realtor.com found that the fall is when buyers find the best deals. According to their analysis, the best week in October for buyers to shop for homes is October 3 through 9.
Their research has also uncovered that buyers are facing 18% less competition now than they did at the peak of the summer season and 6% less competition than another standard week. They also discovered that listings increased 31% and that houses stayed on the market for an extra seven days during this week.
Maybe the most exciting part is that many sellers have been known to list at a lower price during this optimal week. 7% of active homes also typically lower their prices at this time. With 705,000 listings on the market in October, that means that about 50,000 houses will see a price reduction. Buyers could potentially save around $10,000 on a mid-range home if they buy during the optimal week, according to Realtor.com.
That all sounds great, but you might be wondering why you shouldn’t wait longer since the market is cooling. The reality is that waiting even longer will end up costing you more.
The driving force behind this is rising mortgage interest rates. They are expected to reach 3.5% by the end of the year. Choosing to wait means that you would need home prices to drop by 10% to compensate for a 1% rise in interest rates. We didn’t even see house prices drop by 10% during the Great Recession, so don’t expect it to happen now.
Two main factors could cause interest rates to rise soon. The first one is pending inflation and how mortgage rates will be adjusted to combat it. The second factor is the Federal Reserve. They typically buy mortgage bonds to stabilize the housing market and boost the economy, but if they decide to reduce their purchases, interest rates will rise, and buyers will end up paying more.
Our market may be cooling, but now is still a great time to buy. It’s time to get off the fence and take advantage of the increased inventory and low rates because they won’t stick around forever.
We suggest you get started by taking a look at the homes that are available right now:
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Flagstaff Home Seller Advice
We’re very much still in a seller’s market, but the incredible rate of appreciation we’ve been experiencing has started to slow as of late. Home prices are still rising, albeit a bit more slowly. Despite the increase in new inventory, Flagstaff houses are still selling in under two months.
What does this mean for you? If you’re thinking about selling your home, you haven’t missed your chance. This is still a seller’s market, and you can net a great profit from your house.
If you’re interested in knowing your home’s value in the present market based on recent sales in the Northern Arizona MLS, enter your address here to find out what your home is worth right now. 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.
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 firstname.lastname@example.org. 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.
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