Flagstaff AZ Real Estate Market Data Provided by The Broaddus Properties Group Brokered by eXp / by Joselyn Uy
Flagstaff Real Estate Sees Decade-Low Sales, but a Resilient Rebound Looms Ahead
It's common to witness a noticeable slowdown in the housing market towards the year's end, and December 2023 was no different. Homes took more time to sell, median sales prices was up, and there was a decrease in inventory. Here's our latest update.
FLAGSTAFF HOME SALES
US Existing-Home Sales Receded in December vs November while Greater Flagstaff's housing market dropped 23.7% from the previous month according to data provided by the Northern Arizona MLS. With only seventy-four homes sold, this is the lowest December sales in 10 years.
Home Sales by Type
The decrease in these figures doesn't necessarily bring bad news. The slowdown in the market is anticipated, given the time of year and as a result of a year focused on market stabilization.
"The latest month's sales look to be the bottom before inevitably turning higher in the new year. Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months," said National Association of Realtors Chief Economist Lawrence Yun.
Flagstaff Home Sales per Quarter
As evident, sales continue a downward trajectory for the year, starting with high double digits in the first three quarters and then decreasing to single digit in the fourth quarter.
There was a total of 1275 sales which is 18.9% lower than last year. The highest was in 2020 with 2,240 residential housing units sold. The real estate market slowed down throughout 2023, with mortgage rates slightly dropping in the last quarter creating more opportunities for homebuyers,
In 2023, the Broaddus Properties Group Brokered by eXp helped list and sell seventy Northern Arizona homes valued at over $58.9 Million+. In 2022 we listed an sold 59 homes worth $41.1 Million+
FLAGSTAFF MEDIAN HOME PRICE
"The median list-to-sales ratio for this area is 97.5%." List to Sales Ratio is the percentage of the list price that the buyer paid for the property.
The median property price in Flagstaff experienced a modest 2.7% increase, reaching $718,000 in December. In comparison to the same month last year, this reflects a notable 10.5% surge from $650,000. The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.
The selling process for homes extended in December, with a median time on the market reaching 100 days. This marks an increase of 31 days compared to last year and a 20-day slowdown from November.
DECEMBER 2023 Flagstaff Market Watch Summary
Total Home Sales - 74 homes, down 16.9% vs December 2022.
Median Sale Price - $718,000, up 10.5% vs December 2022
Mortgage rates - The 30-year fixed-rate mortgage rate averaged 6.93% this week, up from 6.88 percent last week according to Bankrate.com
Longest days on market (SF): 810 days This is a newer construction one bedroom at the Views at Butler, a 5-story community located in Downtown Flagstaff
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 must be off the MLS for at least 90 days for the CDOM to restart, even if a different agent lists it. We report the average days on the 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.
The luxury benchmark price for Flagstaff single-family homes is $975,000, set by The Institute for Luxury Home Marketing. LUXURY BENCHMARK PRICE is the price point that marks the transition from traditional homes to luxury homes.
- The Flagstaff single-family luxury market is a Balanced Market with a 16% Sales Ratio.
- Homes sold for a median of 99.83% of list price in December 2023.
- The most active price band is $1,100,000-$1,999,999, where the sales ratio is 63%.
- The median luxury sales price for single-family homes is $1,255,000.
- The median days on market for December 2023 was 116 days, up from 57 in December 2022.
FLAGSTAFF'S PRICIEST HOMES SOLD in DECEMBER 2023
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in December was a $2,950,000 five-bedroom luxury custom home in Forest Highlands offering stunning forest and golf course views
- The highest-priced Flagstaff townhome sale was a $710,000 four-bedroom in Forest Spring, located between the prestigious Country Club neighborhood and Downtown Flagstaff
- The highest-priced Flagstaff condominium sale was a $500,000 two-bedroom, 4th floor unit in Flagstaff Town featuring 9ft ceilings, views of Mars Hill and the San Francisco peaks, and assigned parking in the on-site lot
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in DECEMBER 2023
Photo courtesy of Village Land Shoppe
- The lowest-priced single-family Flagstaff home that sold in December was a $305,000 three-bedroom single-level Railroad Springs home boasting a front deck that spans the width of the home and views of the neighborhood Ponderosa Pine trees.
- The lowest-priced Flagstaff townhome sale last month was a $395,000 two-bedroom in Railroad Springs, less than 3 miles from both Downtown Flagstaff and NAU
- The lowest-priced Flagstaff condominium sold was a $238,000 one-bedroom, cost-efficient middle unit in University Heights.
Flagstaff Home Buyer Advice
As we enter the new year, several market areas are experiencing renewed momentum, coupled with a somewhat drop in mortgage rates.
Snagging a home in Flagstaff this year is a smart move, thanks to three game-changing factors: mortgage rates, home prices, and wages. With mortgage rates cooling off, home prices expected to climb at a more relaxed pace, and wages on the rise, buying a home in Flagstaff is becoming more budget-friendly. This upbeat trend is great news for potential homebuyers, pointing towards an overall improvement in affordability.
Securing pre-approval stands as a crucial initial stride in the home-buying process. This not only provides clarity on your borrowing capacity but also signals to sellers your genuine intent to acquire their property. Collaborate with a nearby lender to understand how current interest rates align with your objectives. Feel free to reach out to us at 888.446.5602 or via email at email@example.com, and we'll connect you with reputable lenders who can assist you in exploring your financing options within our local area.
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Flagstaff Home Seller Advice
2023 witnessed the slowest home sales in Flagstaff in the past decade. Sellers, anticipate a soon-to-come surge in sales momentum as we expect to see lower mortgage rates
As mortgage rates decrease, experts predict that the housing market is expected to experience robust demand in early 2024, once again exerting upward pressure on prices, mirroring the patterns observed in the early months of 2023. Consequently, many markets are anticipated to witness further increases in home prices throughout 2024.
Let's chat about how much equity you've got in your current home and how we can use that to make your next move happen. We're here to help you figure out if it's the right time. Got any questions about buying or selling in Flagstaff, or ready to kick off the process? Just give us a call or shoot an email. Looking forward to hearing from you! Feel free to reach out at 888.446.5602 or drop me a line at firstname.lastname@example.org. Cheers!
If you’re curious about what your home is worth in today’s market, click the image below then enter your address to instantly calculate your home’s value in today’s market based on recent Flagstaff home sales
We at the Broaddus Properties Group 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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