Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Real Estate Market Closes 2020 with Double-Digit Gains
I hope your year is off to a great start! We typically expect to see a seasonal slide in buyer activity in the 4th quarter of the year, but, great news: 2020 Flagstaff home sales are in the books and it was a record-setting year!
FLAGSTAFF HOME SALES
The latest report by the National Association of Realtors announced that US Existing home sales climbed by 0.7% in December 2020. Here in Flagstaff, residential home sales decreased 2.9% from November 2019 according to data released by the Northern Arizona MLS. , however, December housing sales in the greater Flagstaff region are up 23.2% from a year ago. Here are our latest figures.
- Month: In December single-family home sales jumped 18% from the same month in 2019, this change due to high buyer demand and historically low mortgage rates.
- 4th Quarter: sales are up by 24% from last year with 454 homes sold (all residential property types)
- Year-to-date sales are up by 26%compared to last year (all residential property types)
The Kelly Broaddus Team ended the year with 108 Northern Arizona homes listed and sold, valued at over $55M.
FLAGSTAFF HOME PRICE
Flagstaff housing prices hit new highs 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.
December housing prices in the greater Flagstaff region rose 31% with the median sale price coming in at $500K which is a new record high for the month of December. The previous high was set last year when the median sale price was at $392,500.
December 2020 Flagstaff Market Watch Summary
Total Home Sales - 170 homes, up 23.2% vs December 2019, new high
Median Home Price - $500,000 up 31.2% vs December 2019, new high
Mortgage rates up - A 30 year fixed rate mortgage with 5% down and very good credit is at an average of 2.89%
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 DECEMBER 2020
Photo courtesy of Northern Arizona Legacy Proper
- The highest-priced single-family Flagstaff home that sold in December was a $3,635,000 meticulously-tended retreat- situated on a private cul-de-sac with expansive views of the signature 14th hole of the Forest Highlands Canyon Course and lake.
- The highest-priced Flagstaff townhome sale was a $576,000 3-bedroom townhome in Pinnacle Pines. This home sits atop a hillside with San Francisco Peaks views.
- The highest-priced Flagstaff condo sale was a $672,000 3 bedroom unit in Pine Canyon, a former model home with Mountain Views from the covered deck
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in DECEMBER 2020
Photo courtesy of Village Land Shoppe
- The lowest-priced single-family Flagstaff home that sold in December was a $280,000 2 bedroom home in Mountainaire that backs a 10-acre parcel providing privacy, and space with treed views
- The lowest-priced Flagstaff townhome that sold was a $242,000 4-bedroom townhouse, one of the largest units in The Village, an apartment complex with 207 units located in the University Heights neighborhood
- The lowest-priced Flagstaff condo that sold was a $135,000 one-bedroom upgraded top-floor unit at The Arbors (Woodlands Area). Located close to NAU, hiking & biking, shopping
Flagstaff Home Buyer
These days, people are looking for space and affordability. That's driving the trend away from big cities and into the suburbs. According to the National Association of Realtors, homebuyers in the largest cities were spending more time checking out suburban listings than homes near the city center.
Asking prices have also increased faster in the suburbs.
It's not just location preferences that are changing. Since many more folks are working from home these days, homes with an office sell faster and for more money than homes without one. However, both of those changes pale in comparison to...
Since last spring, the number of first-time homebuyers has risen sharply. 20% of all adults who don’t own a home say the pandemic has them considering homeownership. As a result, first-time buyers now make up 34% of the total number of buyers. Compare that to 2018 and 2019, when first-time buyers only made up 31% of the market.
Buying a home is easier
In 2020, high-tech innovations like 3D home tours, drone footage, and virtual staging became standard replacements for in-person home visits. We also witnessed some mundane but meaningful innovations, like phone-based entry into homes for sale (no appointment necessary) or the availability of remote mortgage pre-approvals, inspections, appraisals, and even closings. As a result of all this, buying or selling a home is now faster and easier than it's ever been.
So what does this all mean for you in 2021?
Home sales have slowed down a bit. Up in the mountains during winter, sales are weather dependent and December & January are the coldest, snowiest months. When the weather’s nice homebuyers can get out and look at properties and it's been snowing up here in weeks. Plan ahead if you are buying in 2021. From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning.
Mortgage rates are expected to increase slowly throughout 2021 but they will still be inarguably low in comparison to previous years, supporting homebuyer demand. Take advantage and reap the benefits of these low rates.
The Freddie Mac weekly survey shows the average rate for a 30-year fixed mortgage is 2.79%, which is up 0.14 points from last week, and down 0.86 points from this time last year.
It's a seller's market with less than a month of supply of Flagstaff homes at multiple price ranges. Housing supply also traditionally shrinks at this time of year, so the choices buyers will be limited. Many beautiful homes have entered the market recently. If you'd like to see them, click the links below to take a look at the latest Greater Flagstaff area listings.
If you’re buying at the lower price range, having very few homes on the market could present a few challenges. Don’t worry MORE new construction homes are coming into the market! We can also help you find off-market homes that are not listed on the MLS. Let's talk about your situation in person! Call Kelly at 888.446.5602.
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.
Flagstaff Home Seller
The real estate market continues to surge ahead. However, clouds might be forming on the horizon for sellers. Let me give you the details:
1. Ultra-low mortgage rates
Throughout 2020, the popular 30-year fixed mortgage rate set 15 new record lows. It ended 2020 just one basis point higher than the latest record low and currently stands at 2.86%, a full percentage point lower than one year ago. These ultra-low mortgage rates are driving an increase in demand. Unfortunately, sales are restricted due to...
2. Record-low inventory
There were just 1.28 million homes available for sale at the end of November, the last month for which we have full data. That is down 22% from a year earlier. It is also the lowest inventory count since the National Association of Realtors began tracking this metric in 1982. Unsurprisingly, home prices are shooting up thanks to strong demand and record low inventory.
The median price of an existing home sold in November was a staggering 14.6% higher than in November 2019.
If you’re worried this pace is unsustainable, you might be right:
3. A change in the market?
Some experts warn that home prices are overheating and that affordability is suffering. They might have a point because, after five consecutive months of gains, closed sales of existing homes lowered in November. Similarly, after three straight months of record highs, homebuilder confidence in December dropped 4%. December mortgage applications also fell.
So what does this all mean for you?
Well, things might get harder soon for home sellers. Lower affordability could hurt demand, and the price growth we've seen over the past months might slow down, or prices might decrease like we started to see before the pandemic.
Fortunately, nationwide trends haven't caught up to us yet in Flagstaff.
Demand is still very strong. If you were to list now, you could sell quickly and at top dollar.
If you'd like to get an idea of 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.
If you are considering selling while the current market lasts, give me a call at 888.446.5602 or email email@example.com. I've helped many people sell in these pandemic circumstances, and I'm here to answer your questions and help however I can.
If you have further questions about our market or real estate in general, please reach out to me by phone or email. I would be happy to help.
GET IN TOUCH
If you have further questions about our market or real estate in general, please reach out to me by phone or email. I would be happy to help. Let’s start making your 2021 real estate dreams a reality! Please don’t hesitate to call, text or email with any questions.
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