Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
December 2018 Flagstaff Home Sales Decline, Prices Up
I hope your year is off to a great start! US Existing-home sales declined 6.4% in December, according to the National Association of Realtors®, after increasing for 2 consecutive months. Flagstaff home sales are down for the month, quarter and year. Here are our latest figures.
FLAGSTAFF HOME SALES
2018 housing sales were slightly down but the quarter and especially the monthly sales number tanked.
- Month: In December there was 67 single family home sold, down 28% from the same month a year ago.
- 4th Quarter: sales are down by 10%
- Year-to-date sales are off by 1%compared to last year.
If this trend continues, expect home prices to begin to pull back. The Kelly Broaddus Team ended the year with 60 homes listed and sold, valued at over $21M.
FLAGSTAFF HOME PRICE
2018 was a record-setting year with housing prices hitting new highs for the year, the 4th quarter and for the month of December. Median price, the value where half sold for more, while the other half sold for less, more accurately reflects market conditions compared to the average sales price.
Month: December housing prices in the greater Flagstaff region rose 1% with the median sale price coming in at $379K which is a new record high for the month of December. The previous high was set back in December of 2006 when the median sale price was at the lower $379K level.
4th Quarter: New high at $390,000, up 5% vs last year
Year: For calendar 2018 the median sale price of a house sold in the greater Flagstaff area was $385K beating the old high of $379K set back in 2006.
INVENTORY
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 15% 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 15%, 3 months supply.
- Above $500K, we have over 6 months of supply. No shortage here. Oversupply is highest at $1.2M - $1.3M with 22 months inventory
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.
Home Buying Tips Our home buyer's blog will help you plan and prepare for your successful home purchase and avoid headaches and surprises that may arise during the process.
Flagstaff Home Seller
How long will it take for my house to sell is a common question? The answer depends on a lot of factors including pricing, inventory, location, your upgrades and more. Take a look at the chart below showing how long properties for sale & sold homes have been on the market in December 2018.
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!
Home Selling Tips Our blog for home sellers has tons of tips to help sell your home faster and add thousands of dollars to your bottom line. Check it out.
WHAT'S AHEAD FOR FLAGSTAFF REAL ESTATE
I'm sure you're wondering what the year is going to be about. With so much uncertainty in the stock market right now, many of our clients are naturally concerned about where the housing market is headed in 2019. Fortunately, the real estate market has some good news to offer.
Economists expect sales levels to stabilize in the coming year and for home values to continue rising, although at a more modest pace than we saw earlier in the decade.
We’re committed to delivering the truth to our clients, whether it’s positive or negative. And the reality is, much like the stock market, the real estate market will experience ups and downs.
But people will always need a place to live and raise their families, and the majority of them will want to do it in their own home. Experts remain confident that the real estate market will continue to offer a path for Americans to build wealth over the long term … and we wholeheartedly agree.
If you’re concerned, or just curious, you should check out our blog, that answers the question: What’s Ahead for Real Estate in 2019?
December 2018 Flagstaff Market Watch Summary
Total Home Sales- 67 homes, down 28% vs December 2017.
Median Home Price- $379,000 up 1% vs December 2017, highest in more than a decade
Mortgage rates up - A 30 year fixed rate mortgage with 5% down and very good credit fell back to an average of 4.375%
Longest days on market: 976 days. FOREST HIGHLANDS custom home with golf course views on one side and dramatic Canyon views on the other. Originally listed for almost 1M, this luxury home stayed on the market for over 2 and a half years before it sold.
The Institute of Luxury Home Marketing's latest review of the luxury market in North America (US & Canada) pegs median days on market in Dec at 56 days.
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.
DOWNLOAD THE FULL MARKET REPORT HERE
Flagstaff's Priciest Homes SOLD in December 2018
- $1,500,000 - Something unexpected! This is the first time that a luxury home in Northridge/Westridge area topped our list of most expensive Flagstaff homes sold.
- $412,497 - with zero townhouses sold in the golf community this Forest Springs property is Flagstaff's most expensive townhome that sold in December 2018
- $436,209 - price of 2 bedroomFlagstaff Town Condo, most expensive unit in Flagstaff that sold last month
The most AFFORDABLE Flagstaff Homes Sold in December 2018
- Single-family - $163,400 - Off-grid on 10 acres in Leup/Winona
- Townhouse - $225,000 - Continental Country Club Townhome
- Condo - $160,000 - Timberline Place Condos
GET IN TOUCH
These stats mean that the market is slowly balancing. There’s still a way to go, but it’s making progress. Down the road, this will be great news for buyers and sellers. If you’re thinking about buying or selling in 2019, I’d be happy to talk about our local market conditions and your specific situation. Please don’t hesitate to call, text or email with any questions.
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