Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy

It's  A  Supply Challenge, Flagstaff's Home Prices Continue to Break Records

At this time of year kids are back to school and our schedules tend to get a lot busier. And while inventory is slowly starting to increase, there is still not enough housing on the market to satisfy demand. Here's the latest update on the Flagstaff housing market.

FLAGSTAFF HOME SALES

The US Existing-Home Sales Rise 2.0% in July marking two consecutive months of increases while Greater Flagstaff's July housing sales shrink 1.4% for the first time since the start of the year. Flagstaff home sales also posted a 28.7% decline from a year ago with only 214 units sold, according to data from the Northern Arizona Multiple Listing Service (NAAR). Back in July 2020, Flagstaff home sales broke records with 300 homes sold, the most in over a decade, due to pent up demand and mortage rates falling under 3% for the first time since 1971.  

"We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available," 

Lawrence Yun, NAR's chief economist. 

Demand remains strong, with the current housing market is being driven by three main factors.

• MILLENIALS Millennials are now the largest generation in the country, and they’re enlarging their families and buying homes. “We anticipate that millennials will continue to lead homeownership demand,” said Odeta Kushi, deputy chief economist at First American Financial Corp.
• MORTAGE RATES Low mortgage interest rates continue to drive vigorous home-buying demand. While mortgage rates remain low for now, there’s a good chance that we’ll see an uptick in the coming month.
• PANDEMIC The U.S. real estate market is also still being driven in part by reactions to the pandemic, as many buyers move from urban apartments to suburban houses. 

In the homebuilding sphere, many builders are capping sales to manage their costs and make sure they don’t sell more homes than they can build as high demand persists. This July we sold 12 homes in Flagstaff valued at $10.3M. 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 July jumped 27% year over year to $610,000, a new monthly high. Low mortgage rates have stoked the hot Flagstaff housing market for more than a year, with a shortage of inventory pushing prices ever higher.

DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE

July 2021 Flagstaff Market Watch Summary

Total Home Sales -   214 homes, down 28.7% vs July 2020. 

Median Sale Price -  $610,000, up 27.1% vs July 2020, highest in more than a decade

Mortgage rates  - A 30-year fixed-rate mortgage rates remained virtually unchanged week over week at 2.87 percent with an average 0.7 point for the week ending August 12, 2021, up from last week when it averaged 2.77 percent. A year ago the 30-year averaged 2.96 percent.

Longest days on market (SF): 379 days This is a 2678 sq foot, 3 beds, 3.5 bath, new construction townhome in Flagstaff Ranch

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 JULY 2021

Photo courtesy of RE/MAX Fine Properties

• Two luxury homes in Pine Canyon sold for $2,850,000.  2556 S Pinyon Jay Dr & 2610 E Bueno Vista Court are the highest-priced single-family Flagstaff homes that sold last month
• The highest-priced Flagstaff townhome sale was a $1,500,000 3 bedrooms, 3 baths, 3,369 sq. ft. Pine Canyon home with a separate single bedroom and full bath casita with a private entrance.
• The highest-priced Flagstaff condo sale last month was a $350,000 impeccable 2 bed 2 baths second home in Summit Park Condos

THE MOST AFFORDABLE  FLAGSTAFF HOMES SOLD in JULY 2021

Photo courtesy of Village Land Shoppe 

• The lowest-priced single-family Flagstaff home that sold in July was a $255,000 two-bedroom single family residence in Sunnyside
• The lowest-priced Flagstaff townhome sold last month was a $359,900 turnkey 2 bedroom, 1 bath Continental Country Club home. 
• The lowest-priced Flagstaff condo that sold was a $199,000 one bedroom condo in University Meadows (Riordan Ranch) close to NAU, downtown Flagstaff, shopping, and entertainment

Flagstaff Home Buyer Advice 

Mortgage rates have again done the incredible by dropping close to their recent record lows. Rates have fallen partly due to the Federal Housing Finance Agency abandoning its 0.5% fee on refinances. The recent decline in rates is also partly due to the economic uncertainty created by the again growing COVID-19 infections. 

“It remains to be seen how long we'll be able to enjoy these rates," says Matthew Graham of Mortgage News Daily. The craziness we’ve seen in the real estate market for the last few months seems to be waning a bit.  

All this means it’s an excellent time to buy a house if you’ve been considering it. These fantastic rates may not last very long, and you don’t want to miss them. Additionally, with some buyers leaving the market, that means less competition for properties.

Take a look at the homes that are available in Northern Arizona right now.

Click here to see all Flagstaff homes for sale

Search Northern Arizona Homes For Sale

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.

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.

Need a lender recommendation for your home loan? We work with trusted lenders who will walk you through the entire process and have your best interest at heart. Contact Kelly today and we will get you one of our trusted lenders that best fits your needs.

Flagstaff Home Seller Advice 

Home price growth has accelerated in the past year as buyers frantically competed for a limited number of houses on the market. Prices continue to increase and break records as strong demand collides with low supply. Sales of new and existing homes have declined somewhat in the past few months, mainly due to those sky-high prices. 

The median list-to-sales ratio for the Flagstaff area is 104.4%. However, experts predict home price growth to slow by the end of the summer, as the availability of new listings helps relieve some of the pressure brought by competing buyers. Ralph B. McLaughlin, Chief Economist at Haus, Inc said, “I think it’s absolutely likely that price growth will slow throughout the end of the year, as they’re already slowing from their peak in June,” McLaughlin says. “We expect price growth to moderate to the mid-high single digits by December.”

With home supply slowly improving, those considering selling may want to get their houses on the market sooner rather than later to get the best price. 

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.

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. 

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 kelly.broaddus@exprealty.com. 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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A breakdown of all the new market data we have from this summer.

Today I'll go over the latest data from our market this summer.

In June, the median price was $601,620. Last year it was $474,000. The median days on market is 48 days; last year it was 61 days.

From Winslow to Ashfork, there are 236 homes on the market right now. The highest-priced home is $5.2 million and is located in Pine Canyon. The lowest-priced home is $82,000 and is located in Winslow.

"24% of home sellers expect to get more for their home than what they are listed for, and some don't even want to sell if they don't get more than it's listed for."

If you're looking in and around the Flagstaff area, there are 150 available homes. Last year we only had 84. The lowest-priced home is $175,000 and is located in Kachina Village. It's a 5,000 square foot lot.

24% of home sellers expect to get more for their home than what they are listed for and some don't even want to sell if they don't get more than it's listed for. Housing sales jumped 32% versus the previous month. That’s due to increasing inventory. We're seeing a lot more financed offers and fewer cash offers versus a couple of months ago. Also, the 30-year fixed-rate mortgage dropped to an average of 2.93%. Things typically slow down around this time of year so if you're looking to buy, this would be a really good time.

If you have any questions, call me anytime at 928-606-6749. I would be happy to help you.

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

While many areas of the economy have contracted, the housing market has stayed remarkably strong. But can the good news last?

When COVID-related shutdowns began in March, real estate brokers and clients scrambled to respond to the shift. Record-low interest rates caused some lenders to call a halt to new underwriting, and homeowners debated whether or not to put their houses on the market. However, those first days of uncertainty ushered in a period of unprecedented demand in the U.S. real estate market, which ended the year with increasing average home prices (up 13.4% from the previous year) and shrinking days on market (13 fewer than in 2019).¹

Now, as the spring market approaches, you may be wondering whether the good times can continue to roll on. If you’re a homeowner, should you take advantage of this opportunity? If you’re a buyer, should you jump in and risk paying too much? Below we answer some of your most pressing questions.

How is today’s market different from the one that caused the 2008 meltdown?

At the beginning of the pandemic, fears of an economic recession and an ensuing mortgage meltdown were top of mind for homeowners all across the country. For many buyers and sellers, the two seemed to go hand in hand, just as they did in the 2008 economic crisis.

In reality, however, the conditions that led to 2008’s recession were very different from those that triggered the current downturn—and this time, the housing market is the source of much of the good news.² This is in line with historical patterns, as housing prices traditionally hold steady in the face of recession, with homeowners staying put and investors putting their money into bricks and mortar to ride out uncertainty in the stock market.

This time around, because of lessons learned in 2008, banks are better funded, homeowners are holding more accrued equity, and, crucially, much of the economic activity is focused on financial factors outside the housing market. As many industries quickly pivoted to work-from-home, early fears of widespread job loss-related foreclosures have failed to materialize. Federal stimulus payments and the Paycheck Protection Program also helped to offset some of the worst early effects of the shutdown.

Are we facing a real estate bubble?

A real estate bubble can occur when there is a rapid and unjustified increase in housing prices, often triggered by speculation from investors. Because the bubble is (in a sense) filled with “hot air,” it pops—and a swift drop in value occurs. This leads to reduced equity or, in some cases, negative equity conditions.

By contrast, the current rise in home prices is based on the predictable results of historically low interest rates and widespread low inventory. Basically, the principle of supply and demand is working just as it’s supposed to do. In addition, experts predict a strong seller’s market throughout 2021 along with increases in new construction.³ This should allow supply to gradually rise and fulfill demand, slowing the rate of inflation for home values and offering a gentle correction where needed.

Effects of low interest rates

According to Freddie Mac, rates are projected to continue at their current low levels throughout 2021.⁴ This contributes to home affordability even in markets where homes might otherwise be considered overpriced. These low interest rates should keep the market lively and moving forward for the foreseeable future.

Effects of low inventory

Continuing low inventory is another reason for higher-than-average home prices in many markets.⁵ This should gradually ease as an aggressive vaccination rollout and continuing buyer demand drive more homeowners to move forward with long-delayed sales plans and as new home construction increases to meet demand.⁶

Aren’t some markets and sectors looking particularly weak?

One of the big stories of 2020 was a mass exodus from attached home communities and high-priced urban areas as both young professionals and families fled to the larger square footage and wide-open spaces of suburban and rural markets. This trend was reinforced by work-from-home policies that became permanent at some of the country’s biggest companies.

Speculation then turned to the death of cities and the end of the condo market. However, it appears that rumors of the demise of these two residential sectors have been greatly exaggerated.

With the first vaccine rollouts, renters have begun returning to major urban centers, attracted by the sudden rise in available inventory and newly discounted rental rates.⁷ In addition, buyers who were previously laser-focused on a single-family home responded to tight inventory by taking a second look at condos.⁸ While nationwide condo prices continue to lag behind those of detached homes, they’ve still seen significant price increases and days on market reductions year over year.

In addition to these improvements, the 2020 migration has spread the economic wealth to distant suburban and rural enclaves that normally don’t benefit from increases in home values or an influx of new investment. As many of these new residents set up housekeeping in their rural retreats, they’ll revitalize the economies of their adopted communities for years to come.

How has COVID affected the “seasonal” real estate market?

Frequently, the real estate market is seen as a seasonal phenomenon. However, the widespread shutdowns in March 2020, coming right at the beginning of the market’s growth cycle in many areas, has led to a protracted, seemingly endless “hot spring market.”

While Fannie Mae’s chief economist Douglas Duncan predicts slower growth from 2020’s historic numbers, the outlook overall is positive as we embark on the 2021 spring selling cycle.⁹ Duncan anticipates an additional lift in the second half of 2021 as buyers return to business as usual and look to put some of their pandemic savings to work for a down payment. Thus we could be looking at another longer-than-usual, white-hot real estate market.

How will a Biden administration affect the real estate market?

Projected policy around housing promises to be a boost to the real estate market in many cases.¹⁰ While some real estate investors bemoan proposed changes to 1031 Exchanges, the Biden plan for a $15,000 first-time homebuyer tax credit aims to increase affordability and bring eager new home buyers into the market. In addition, Biden-proposed policy pinpoints low inventory as a primary driver of unsustainable home values and is geared toward more affordability through investments in construction and refurbishment.

Overall, according to most indicators, the real estate news looks overwhelmingly positive throughout the rest of 2021 and possibly beyond. Pent-up demand and consumer-driven policies, along with a continued low-interest-rate environment and rising inventory, should help homeowners hold on to their increased equity without throwing the market out of balance. In addition, the increase in long-term work-from-home policies promises to give a boost to a wide variety of markets, both now and in the years to come. 

STILL HAVE QUESTIONS? WE HAVE ANSWERS

While economic indicators and trends are national, real estate is local. We’re here to answer your questions and help you understand what’s happening in your Flagstaff neighborhood. Reach out to learn how these larger movements affect our local market and your home’s value. 

Homebuyers and sellers in Northern Arizona can reach The Kelly Broaddus Real Estate Advisor Team with eXp Realty at the following numbers: 888-446-5602, 928-332-3524, 928-256-5029 & or call Kelly direct at 928.606.6749. Email us at kelly.broaddus@exprealty.com.

Sources:

1. Realtor.com -
   https://www.realtor.com/research/december-2020-data/
2. New York Magazine -
   https://nymag.com/intelligencer/2020/06/why-this-economic-crisis-wont-be-as-bad-as-2008.html
3. Washington Post -
   https://www.washingtonpost.com/business/2021/01/11/2021-housing-market-predictions/
4. Freddie Mac -
   http://www.freddiemac.com/research/forecast/20210114_quarterly_economic_forecast.page?
5. Wall Street Journal -
   https://www.wsj.com/articles/housing-market-stays-tight-as-homeowners-stay-put-11611226802?mod=re_lead_pos1
6. Marketwatch -
   https://www.marketwatch.com/story/new-home-construction-activity-soars-to-highest-level-in-over-a-decade-as-builders-rush-to-produce-single-family-homes-2021-01-21
7. Forbes -
   https://www.forbes.com/sites/noahkirsch/2021/01/14/signs-of-a-rebound-new-york-city-rent-prices-are-climbing-back
8. Washington Post -
   https://www.washingtonpost.com/business/2021/01/07/condo-sales-rebound-amid-dwindling-inventory-houses/
9. Mortgage Professional America -
   https://www.mpamag.com/news/fannie-mae-chief-economists-forecast-for-us-economy-housing-market-in-2021-244045.aspx
10. Inman -
    https://www.inman.com/2020/11/09/what-a-joe-biden-presidency-means-for-real-estate-and-housing/

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by Joselyn Uy

Flagstaff, AZ, August 5, 2021 - The list is out for the July 2021 eXp ICON Agent Agent awards, and 181 agents across the US and Canada have been recognized for achieving production goals and demonstrating company culture. Congrats and thanks for all that you do!

eXp Realty, the largest residential real estate brokerage by geography in North America, announced that Kelly Broaddus, along with 181 top-producing agents across the country, has been given the eXp Realty ICON Award for July 2021.  She has achieved $35 million dollars in sales volume with 66 transactions in the first seven months of 2021. Kelly received her first ICON award in August 2018 during her first year of joining eXp Realty.

"I have long said that I would much prefer getting a $16,000 stock award at the end of the year to reward my performance and hard work than a pretty statue to put on my shelf.  This company allows us to be "Agent Owners" and that is unprecedented with RE Brokerages.  I am grateful to eXp for allowing me to literally have 3 different streams of income, this is fantastic!"

-Kelly Broaddus, Broker Associate with eXp Realty Northern Arizona

The eXp Realty ICON Agent Award recognizes agents who achieve exceptional production goals and represent a good cultural fit for the brokerage. The eXp Realty ICON Agent Award provides each qualified ICON with up to $16,000 in publicly traded eXp World Holdings, Inc. common stock upon the achievement of certain production goals within an agent’s anniversary year. The company’s cap is presently set at $16,000. Through the program, ICONs effectively can earn up to their entire cap amount back in the form of stock.

ICON can earn up to $16,000 USD Stock Awards:

• ★ $8,000 USD by meeting the ICON Status Production Requirements,
• ★ $4,000 USD by meeting the ICON Status Cultural Requirement and
• ★ $2,000 USD per event for attending Shareholders and EXPCON events

ICON agent qualification details are:

1. Demonstrates company culture through giving back by teaching a class, serving on a panel, or serving on a committee
2. Demonstrates a willingness to promote eXp Realty within their community.
3. Production requirement: $16,000 paid in company cap plus capped status transactions in the same anniversary year resulting in capped status transaction fees of not less than $5,000, OR
4. Production requirement: Annual gross commission income of $500,000 or more with a minimum of 10 closed transactions and payment of an “ICON Qualifying Fee” equal to $5,000 less capped transaction fees paid during the same anniversary year.
5. Approval by the ICON Vetting Committee. - ICON agents,  will be interviewed by a current member of the ICON Vetting Committee in the month of ICON recognition. The goal of the interview is to confirm the candidate operates in alignment with eXp Realty’s core values.

$12,000 in publicly traded eXp World Holdings common stock is awarded and vests after three years, $4,000 is issued with no vesting period.

Kelly Broaddus has been working in the real estate industry for more than 20 years and has extensive experience in buying and selling residential real estate. She leads the Kelly Broaddus Real Estate Advisors Team, a top-producing real estate team based in Flagstaff, AZ offering real estate solutions to home buyers and sellers in Flagstaff, Sedona, Cornville, Williams, and nearby areas. 

eXp Realty provides 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its fully-immersive, virtual campus environment. As a public company subsidiary, eXp Realty uniquely offers real estate professionals within its ranks opportunities to earn company stock for production and contributions to overall company growth. eXp Realty is one of the fastest-growing real estate brokerages in the United States with more than 12,000 agents in 49 U.S. states, the District of Columbia and three Canadian provinces.

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Kelly's Recognition & Awards

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

 Sold! Dream Continental Country Club Home with Golf Course View!  

  4 Beds |  2 Baths | $529,850

Price Reduced 20K! Golf course view! Great opportunity to own a four bedroom two bath home on Continental Country Club's premier golf course. This home is your canvas, create your dream cottage here!  Enjoy sitting on the covered porch watching folks tee off! Close to walking trails, great schools and wonderful park for sports and skating. Large yard. The lot features many mature trees front and back.  No HOA at this property! Great VRBO potential...

Truly a must see, amazing location away from traffic in University and Milton road.

Photos and more information here: northernarizonafinehomes.com/property/186900/

Take a Virtual Tour: https://www.tourfactory.com/2907560

LOCATION

5055 North Country Club Drive

Car-Dependent

Learn more about Continental Country Flagstaff

Amusement & Recreation 

• NAU Art Museum- Includes an exhibit building, research labs, and state of the art collections facilities for more than five million Native American artifacts, natural science specimens, and fine art pieces.
• Hal Jensen Recreation Center - Is designed for family fun and fitness with a variety of drop-in hours.
• Thorpe Park Center - Great place for the whole family including the furry ones. There are plenty of activities for the kids, playground area, picnic tables, lots of grass areas, sports fields, a dog park, adequate parking.  

Dining Nearby

Nearby restaurants include Nomads Global Lounge, if you are looking for an unusual menu with a great range of flavors this is a great place for you. You can also drop by at Tinderbox Kitchen and enjoy the good food and Flagstaff's authentic vibe. Satchmo’s is also a great place for dinner with a group. If you're looking for crafted BBQ and Cajun cooking it's just a small detour from the main road.

Nearby Schools

• Thomas M Knoles Elementary School
• Mount Elden Middle School
• Coconino High School

Continental Country Club Neighborhood Information 

This neighborhood is quiet but close to Flagstaff's downtown. Dog friendly with city water and sewer. Residents on HOA enjoy access to the restaurant, club house with pools and tennis and all amenities that Continental Country Club has to offer. Safe and friendly area for young and old alike.

Visit the Continental Country Club community page for more information about this premier Flagstaff community with an 18-hole course nestled at the foot of the San Francisco Peaks. 

Contact Kelly Broaddus at kelly.broaddus@exprealty.com  or call 888-4465602 to see other houses and condos for sale in Flagstaff.

Search for Homes in Flagstaff, Arizona

Flagstaff Homes for Sale Under $400,000

Flagstaff Homes for Sale $400,000 - $500,000

Flagstaff Homes for Sale $500,000 - $600,000

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Flagstaff Homes for Sale $700,000 and above

Here’s why there’s no need to worry about a housing market bubble.

Are we in a housing market bubble? That seems to be the big question that’s on everybody’s mind lately, as many people believe that our crazy market is about to crack at the seams. Fortunately, our current market is very different from what we saw in 2008, and today I’ll be illustrating why there’s really not much to worry about.

For your convenience, I’ve included timestamps for today’s video topic. Feel free to navigate to the section(s) you’re most interested in viewing:

(00:08) — Introduction to today’s topic: Are we in a bubble?

(00:51) — Our market is different from the one that crashed in 2008

(01:56) — Lending practices have drastically changed

(02:54) — Everything is verified nowadays

(04:08) — The COVID-19 pandemic played a huge role in our blazing-hot market

(04:47) — It’s a completely different ballgame for buyers and sellers right now

(05:40) — Things may be starting to calm down slightly

(06:41) — Conclusion to today’s video

If you’d like to learn more about our market, or if you have any questions about buying or selling a home, feel free to reach out to me. I look forward to hearing from you soon.

Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy

Is the Flagstaff Market Slowing Down? Bidding Wars Begin To Cool

The real estate market remains hot for sellers as we approach the midpoint of summer. Prices are still rising, and home seller expectations are sky-high. 24% of home sellers expect to get more than their asking price when all is said and done.  Here's the latest update on the Flagstaff housing market.

FLAGSTAFF HOME SALES

The Existing-Home Sales Expand 1.4% in June breaking four consecutive months of decline while Greater Flagstaff's June housing sales jump 32% vs the previous month. Flagstaff home sales posted a 9.7% decline year-over-year with 214 units sold vs the same period last year according to data from the Northern Arizona Multiple Listing Service (NAAR). A year ago, Flagstaff home sales saw a historic turnaround as stay at home orders around the country were lifted.

The chief economist at the NAR, Lawrence Yun, had this to say: "Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic."

Demand remains strong from first-time homebuyers, year-round residents, second home/move-up buyers and NAU students competing for affordable housing.

This June we sold 13 homes in Flagstaff valued at around $6.9M. Big thanks to our clients!

FLAGSTAFF MEDIAN HOME PRICE

"The median list-to-sales ratio for this area is 103.8%." 

List to Sales Ratio is the percentage of the list price that the buyer ultimately paid for the property. High demand & low inventory caused the median sold price in June to increase 27% year over year to $601,620, a new monthly high. 

Even after more than a year in our frenzied market, home prices continue to soar, which is excellent news for those who own new and existing homes in our marketplace.

Realtor.com's Lawrence Yun also predicted home prices are in no danger of a decline due to tight inventory conditions, but expect prices to appreciate at a slower pace by the end of the year.. 

DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE

June 2021 Flagstaff Market Watch Summary

Total Home Sales -   214 homes, down 9.7% vs June 2020. 

Median Sale Price -  $601,620, up 26.9% vs June 2020, highest in more than a decade

Mortgage rates  - A 30-year fixed-rate mortgage dropped to an average of 2.93% for the week ending June 17 — down from 2.96% last week, giving some borrowers another shot at sub-3% rates.

Longest days on market (SF): 439 days This is a new construction at The Enclave in Presidio, a 91-acre mixed-use urban village and is of the newest community in 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 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 JUNE 2021

Photo courtesy of RE/MAX Fine Properties

• The highest-priced single-family Flagstaff home that sold in June was a $2,850,000   luxurious four-bedroom Lockett Ranches home on 3 Heavily Treed Acres Backing National Forest Service Land
• The highest-priced Flagstaff townhome sale was a $555,000 remodeled two-bedroom SINGLE LEVEL Walnut Canyon Village Townhome on the greenbelt with MOUNTAIN VIEWS. This home is in the Continental Country Club area.
• The highest-priced Flagstaff condo sale last month was a $460,000  completely remodeled 3-bedroom unit in Flagstaff Ranch next to the Flagstaff Ranch golf course as well as the forest

THE MOST AFFORDABLE  FLAGSTAFF HOMES SOLD in JUNE 2021

Photo courtesy of Realty One Group, Mountain Desert

• The lowest-priced single-family Flagstaff home that sold in June was a $240,000 3-bedroom single family residence in the Leupp/Winona area
• The lowest-priced Flagstaff townhome sold was a $255,000 -  2 bedroom 1.5 bath Sunnyside home. One bedroom has a balcony on the second floor for storage or a place to sit outside with views of Mt. Elden.
• The lowest-priced Flagstaff condo that sold was a $192,200 -  1 bedroom condo in the Timberline Place community. Community amenities include the clubhouse, indoor basketball and volleyball courts, fitness room, jacuzzi, sauna ,yoga studio, BBQ area, swimming pool & outdoor fireplace.

Flagstaff Home Buyer Advice 

Mortgage interest rates have dipped just below 3% once again. The average for a 30-year fixed-rate mortgage now sits at 2.98%. 

The week prior, rates jumped back up above 3%. This was the first time in 10 weeks that rates had risen above 3%. 

The news of rates rising above 3% triggered a pretty significant drop in mortgage applications. The Mortgage Bankers Association reported that they dropped by 6.9% last week. That’s their lowest level in almost a year and a half. There were declines in both refinance and purchase applications.

The drop in purchase applications caused them to hit their lowest level since May 2020. Buyers are having difficulties finding affordable homes in a housing market with critically low inventory.

Even if rates jump back up over 3%, mortgage rates will still be at some of the lowest levels in history. Homeowners can save hundreds of dollars per month by refinancing, and buyers can still lock in a very attractive 30-year fixed rate.

Hoping for rates to drop even lower is a big gamble.

As the economy recovers from COVID, many experts (including Freddie Mac’s chief economist) predict that rates will gradually rise during the back half of 2021. If buying or refinancing is in your plans for the summer, it’s time to start the process now and lock in that rate while you can. 

If buying a home is in your plans this summer, you can get a jump on the summer market by taking a look at the homes that are available in Northern Arizona right now.

Click here to see all Flagstaff homes for sale

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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.

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.

Need a lender recommendation for your home loan? We work with trusted lenders who will walk you through the entire process and have your best interest at heart. Contact Kelly today and we will get you one of our trusted lenders that best fits your needs.

Flagstaff Home Seller Advice 

The Flagstaff real estate market has softened a tad.  Homes are still selling FAST. We were getting 10 offers on each homelast month, now it is more like 2 or 3. 

53% of sellers expect that they’ll get at least their asking price once they put a home on the market, according to a recent survey by Realtor.com. Why do prices continue to rise, and how much longer will this trend last?

Even with an uptick in inventory, the market may continue at its breakneck pace because...

More homes were listed in Northern Arizona in June, but prices still hit all-time highs. We saw a needed influx of inventory over the past month. New listings increased by 13.2% in June vs May, and they’re up by 1.9% for the year, by 29 homes. This jump is not significant, and the overall number of homes for sale is still down 45% year over year.

Since we have far fewer homes for sale compared to last year, prices have seen a boost. The median list price for all properties in the Northern Arizona MLS is up and now sits at $699,000. 

“More homeowners are deciding to put their homes on the market, encouraged by vaccines, a stronger economy, and low mortgage rates,” says Ratiu. “What this means is buyers will have more choices at more affordable prices.” These numbers are all encouraging for homeowners, but some are still hesitant to enter the market since...

Sellers need a moving plan from the start.

While a home is going to sell pretty quickly in today’s market, you’re going to need a plan for buying. Stephanie Ruhle, NBC News senior business correspondent, said “It is very possible that your home will sell quickly, and you don't want to be crashing in a hotel while you compete for a new place.”

Some sellers are negotiating rent-back agreements with buyers that allow them extra time for their home search. Others are finding temporary housing or moving in with relatives during the buying process. Every situation is different, but just know that you do have options to help you reach your goals.

What does all of this mean for you? As long as demand remains high and inventory stays relatively low, homeowners are in a great position to sell. Quick sales with multiple offers continue to be more of the norm than the exception.

While mortgage rates remain low for now, there’s a good chance that we’ll see an uptick in the coming months. Leonard Kiefer, deputy chief economist for Freddie Mac, expects these historically low rates to stay at least through the summer.

If you're curious about 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.

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. 

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.

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Here’s what else you need to know about home financing.

When preparing to buy a home, you have to understand the basics of home financing. In other words, you need to know your ability to afford a home relative to the price. 

For example, what’s the difference between a 30-year and 15-year fixed mortgage? You’ll get a much better interest rate for a 15-year (or 10-year) fixed mortgage, but I always encourage people to opt for the 30-year fixed mortgage because you never know what can happen in life. It’s a lot better to live with a lower payment than a higher one, even if the interest rate is a little higher. You can always make extra payments. Even if you make just one payment a year, you significantly lower the term of your loan. It’s important to have as much control as you can. 

"You need to know your ability to afford a home relative to the price."

The type of loan you get is important as well. If you’re getting down payment assistance or a higher loan-to-value ratio, you’ll pay a higher interest rate. If you’re getting an adjustable loan, it means your rate varies. It usually starts out low and increases up to a certain amount per year. It all depends on your goals. If, for example, you plan on buying a house, fixing it, and flipping it in a year or two, getting an adjustable loan wouldn’t be a bad idea. If you plan on buying a house for your family to live in, you definitely don’t want an adjustable loan. 

These are things a good lender will explain thoroughly to you. If you have any questions for me about this subject, give me a call or shoot me an email. I’d love to speak with you. 

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

See all homes for sale in Forest Highlands

 Sold! Golf, Luxury Living in Quiet & Private Flagstaff Getaway  
2 Beds | 2 Baths | $649,879

Welcome to the perfect Forest Highlands getaway! Tucked into a quiet and private cul-de-sac, this special home with 2 ensuite bedrooms and a loft is charming and fabulous for family & friends. The open kitchen and greatroom is the heart of this home. It's spacious and welcoming with soaring cielings, a fireplace, dining nook, and beautiful windows. Walk out to the large back deck and enjoy the lush green space surrounding you. The split master is perfect for guests. The upstairs loft makes a fanatastic office or extra sleep or media space. Do you love quiet? This is a peaceful and quiet location. Steps away from the Wetlands, a stunning natural preserve that borders FH, you can experience exquisite natural beauty and the ultimate FH luxury life. Furnished! Inspection done. Great shape

Photos and more information here: northernarizonafinehomes.com/property/186370/

Take a Virtual Tour: 

Location

2052 Paleo Place

Car-Dependent

Learn more about Forest Highlands

Dining Nearby

 Are you a Mediterranean food lover? My Pita Wrap offers lots of choices available. Another place definitely worth a visit is Delhi Palace,  excellent food selection, great price for a lunch buffet. Mountainaire Tavern & Coppa Cafe are also nearby.

Attractions & Recreation

• Lowell Observatory - Founded in 1894, this hilltop center with giant telescopes offers tours, solar viewing & stargazing.
• Flagstaff Extreme Adventure Course - Facility at Fort Tuthill County Park offering treetop suspended obstacle courses for kids & adults.
• Walnut Canyon National Monument - features prehistoric archaeological sites that are spectacularly located in cliffs and along the rim of Walnut Canyon. 

Schools

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Forest Highlands Neighborhood Information 

Forest Highlands was established in 1987, the 1,100-acre Forest Highlands community is located two hours north of Phoenix and about five miles south of Flagstaff. Its custom homes and homesites offer exquisite views of the surrounding forest, mountains and lush tree-lined golf courses.

Contact Kelly Broaddus at kelly.broaddus@exprealty.com  or call 888-4465602 to see other houses for sale in Flagstaff.

Search for Homes in Flagstaff, Arizona

Flagstaff Homes for Sale Under $500,000

Flagstaff Homes for Sale $500,000 - $750,000

Flagstaff Homes for Sale $750,000 - $1M

Flagstaff Homes for Sale $1M & Above

Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs,¹ the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever.

That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the contract price. Traditionally, the sale of a home is contingent on a satisfactory valuation. But in a rapidly appreciating market, it can be difficult for appraisals to keep pace with rising prices.

Thus, many sellers in today’s market favor buyers who are willing to guarantee their full offer price—even if the property appraises for less. For the buyer, that could require a financial leap of faith that the home is a solid investment. It also means they may need to come up with additional cash at closing to cover the gap.

Whether you’re a buyer or a seller, it’s never been more important to understand the appraisal process and how it can be impacted by a quickly appreciating and highly competitive housing market. It’s also crucial to work with a skilled real estate agent who can guide you to a successful closing without overpaying (if you’re a buyer) or overcompensating (if you’re a seller). Find out how appraisals work—and in some cases, don’t work—in today’s unique real estate environment.

DOWNLOAD YOUR FREE REPORT: 

How to Bridge the Appraisal Gap in Today’s Real Estate Market

APPRAISAL REQUIREMENTS

An appraisal is an objective assessment of a property’s market value performed by an independent authorized appraiser. Mortgage lenders require an appraisal to lower their risk of loss in the event a buyer defaults on their loan. It provides assurance that the home’s value meets or exceeds the amount being lent for its purchase.

In most cases, a licensed appraiser will analyze the property’s condition and review the value of comparable properties that have recently sold. Mortgage borrowers are usually expected to pay the cost of an appraisal. These fees are often due upfront and non-refundable.²

Appraisal requirements can vary by lender and loan type, and in today’s market in-person appraisal waivers have become much more common. Analysis of the property, the local market, and the buyer’s qualifications will determine whether the appraisal will be waived. Not all properties or buyers will qualify, and not all mortgage lenders will utilize this system.³ If you’re applying for a mortgage, be sure to ask your lender about their specific terms.  

If you’re a cash buyer, you may choose—but are not obligated—to order an appraisal.

APPRAISALS IN A RAPIDLY SHIFTING MARKET

An appraisal contingency is a standard inclusion in a home purchase offer. It enables the buyer to make the closing of the transaction dependent on a satisfactory appraisal wherein the value of the property is at or near the purchase price. This helps to reassure the buyer (and their lender) that they are paying fair market value for the home and allows them to cancel the contract if the appraisal is lower than expected.

Low appraisals are not common, but they are more likely to happen in a rapidly appreciating market, like the one we’re experiencing now.⁴ That’s because appraisers must use comparable sales (commonly referred to as comps) to determine a property’s value. These could include homes that went under contract weeks or even months ago. With home prices rising so quickly,⁵ today’s comps may be lagging behind the market’s current reality. Thus, the appraiser could be basing their assessment on stale data, resulting in a low valuation.

HOW ARE FLAGSTAFF BUYERS AND SELLERS IMPACTED BY A LOW APPRAISAL?

When a property appraises for less than the contract price, you end up with an appraisal gap. In a more balanced market, that could be cause for a renegotiation. In today’s market, however, sellers often hold the upper hand.

That’s why some buyers are using the potential for an appraisal gap as a way to strengthen their bids. They’re proposing to take on some or all of the risk of a low appraisal by adding gap coverage or a contingency waiver to their offer.

Appraisal Gap Coverage

Buyers with some extra cash on hand may opt to add an appraisal gap coverage clause to their offer. It provides an added level of reassurance to the sellers that, in the event of a low appraisal, the buyer is willing and able to cover the gap up to a certain amount.⁶

For example, let’s say a home is listed for $200,000 and the buyers offer $220,000 with $10,000 in appraisal gap coverage. Now, let’s say the property appraises for $205,000. The new purchase price would be $215,000. The buyers would be responsible for paying $10,000 of that in cash directly to the seller because, in most cases, mortgage companies won’t include appraisal gap coverage in a home loan.⁶

Waiving The Appraisal Contingency

Some buyers with a higher risk tolerance—and the financial means—may be willing to waive the appraisal contingency altogether. However, this strategy isn’t for everyone and must be considered on a case-by-case basis.

It’s important to remember that waiving an appraisal contingency can leave a buyer vulnerable if the appraisal comes back much lower than the contract price. Without an appraisal contingency, a buyer will be obligated to cover the difference or be forced to walk away from the transaction and relinquish their earnest money deposit to the sellers.⁷

It’s vital that both buyers and sellers understand the benefits and risks involved with these and other competitive tactics that are becoming more commonplace in today’s market. We can help you chart the best course of action given your individual circumstances.

DON’T WAIVE YOUR RIGHT TO THE BEST REPRESENTATION

There’s never been a market quite like this one before. That’s why you need a master negotiator on your side who has the skills, instincts, and experience to get the deal done...no matter what surprises may pop up along the way. If you’re a buyer, we can help you compete in this unprecedented market—without getting steamrolled. And if you’re a seller, we know how to get top dollar for your Northern Arizona home while minimizing hassle and stress. Contact us today to schedule a complimentary consultation.

Homebuyers and sellers in Northern Arizona can reach The Kelly Broaddus Real Estate Advisor Team with eXp Realty at the following numbers: 888-446-5602, 928-332-3524, 928-256-5029 & or call Kelly direct at 928.606.6749. Email us at kelly.broaddus@exprealty.com.

Sources:

1. Wall Street Journal -
   https://www.wsj.com/articles/u-s-home-prices-push-to-record-high-slowing-pace-of-purchases-11621605953
2. US News & World Report - https://realestate.usnews.com/real-estate/articles/what-is-a-home-appraisal-and-who-pays-for-it
3. Rocket Mortgage –
   https://www.rocketmortgage.com/learn/appraisal-waiver 
4. Money -
   https://money.com/coronavirus-low-home-appraisal/
5. S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index - https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-20-city-composite-home-price-nsa-index/#overview
6. Bigger Pockets -
   https://www.biggerpockets.com/blog/appraisal-gap-coverage
7. Washington Post -
   https://www.washingtonpost.com/realestate/competitive-buyers-waive-contingencies-to-score-homes-in-tight-market/2021/06/02/d335b050-af2c-11eb-b476-c3b287e52a01_story.html

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