Is it going to be a good or a bad year for Flagstaff real estate? Although it is still very early in the year to forecast a trend my instincts tells me that we are going to have a very good year. January started off nicely with the median sale price rising 12% from the same period in 2013. This January’s median sale price of a house that sold in the greater Flagstaff area was $268,600.
What is Selling?
Total house sales dropped 9% coming in at 48. Most homes sold are in $200 to $300k price bracket. The average price per-square-foot paid rose 14% to $161.This January, distressed sales dropped by half totaling 8 down from 16 a year ago. Sales volume is low and the root cause of this is still the low inventory of homes for sale. Buyer demand is back and if there are more homes for sale, we will likely see a surge in home sales.
Low Inventory Levels
How bad is it? We had low inventory last year and we are still in relatively the same status quo. For houses priced under $350K there is barely a four month supply and for houses priced under $300k that supply figure drops to less than three and a half months. We are expecting inventory levels to recover come spring & summer as more home sellers come in during these season.