Flagstaff AZ Real Estate Market Data Provided by The Kelly Broaddus Real Estate Advisors Team / by Joselyn Uy
Flagstaff Home Sales Slide in May, Strong Rebound Expected in June
These numbers indicate what we’d expect – the pandemic affected home sales. However, as we move through summer, housing is poised to pick up once again. Here's the latest update on the Flagstaff housing market.
FLAGSTAFF HOME SALES
The US existing home sales dropped for the third straight month in May at 9.7% vs the previous month and 26.6% year over year. This is the largest annual decline since 1982. Meanwhile, Greater Flagstaff's housing sales bounced 9.7% with 133 homes sold from 124 in April 2020, according to the latest data compiled from the Northern Arizona Multiple Listing Service (NAAR). Looking at year-over-year figures, home sales slowed for the second straight month by 22%. See the breakdown below.
"Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point,” said Lawrence Yun, NAR’s chief economist. “Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”
Despite the pandemic, our Kelly Broaddus Real Estate Advisors Team posted our second-best May sales with 6 homes sold valued at around $4.1M. Our best record was last year at $4.6M.
FLAGSTAFF MEDIAN HOME PRICE
Housing prices in the Flagstaff region hit another new monthly high. This May the median sales price came in at $468,750 which is up 19% from May ’19.
There's a very high level of demand and very low inventory. The severe shortage of affordable starter homes is pushing home prices to record levels. However, the moment might not last. Flagstaff MLS data reported an uptick in new listings at the end of May. The number of homes on the market is likely to become higher in the coming months.
DOWNLOAD THE FULL FLAGSTAFF MARKET REPORT HERE
May 2020 Flagstaff Market Watch Summary
Total Single Family Home Sales - 84 homes, down 30% vs May 2019.
Median Home Price - $468,750, up 18.5% vs May 2019
Mortgage rates - 30-year fixed-rate mortgage remained at an all-time low of 3.13% for the week ending June 25th
Longest days on market (SF): 693 new build 4-bedroom, two-story townhome in the Elk Pass neighborhood
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 May 2020
Photo courtesy of RE/MAX Fine Properties
- The highest-priced single-family Flagstaff home that sold in May was $3,023,000 - a 5 bedroom Pine Canyon luxury custom home with endless views of golf and mountains.
- The highest-priced Flagstaff townhome sale was a $972,483 - Elk Pass 2 story Townhome in Pine Canyon with 4 bedrooms, 3.5 bathrooms with an open floor plan perfect for entertaining
- The highest-priced Flagstaff condo sale was $827,747 - a three-bedroom, 1967 sqft luxury unit in Pine Canyon with a covered wrap-around patio, open floor plan, gourmet kitchen, and 2 car garage
THE MOST AFFORDABLE FLAGSTAFF HOMES SOLD in May 2020
Photo courtesy of Village Land Shoppe
- The lowest-priced single-family Flagstaff home that sold in May was a $254,000 - 3-bedroom move-in ready home in Mountainaire that has been a second home since its construction
- The lowest-priced Flagstaff townhome that sold was a $219,900- 2 bed, 1 bath with a large Trex deck overlooking the mini par 3 golf course and around the corner is the Continental Country Club
- The lowest-priced Flagstaff condo that sold was a $135,000 - a one-bedroom condo on the 2nd floor at the Arbors and located near NAU.
Flagstaff Home Buyer Advice
Data indicates more homebuyers are jumping back into the market. Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Locking in at a low rate could save you thousands of dollars over the lifetime of your home loan. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.
If you are ready to buy your dream Flagstaff home now, take advantage of the low mortgage rate. Here is what you need to know about the mortgage process.
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.
The market favors sellers for Flagstaff homes under $600,000 but favors buyers in the higher price ranges. Inventory was already low before the coronavirus hit. Click below to see available homes
Follow these tips to simplify your Flagstaff home search.
1. 5 Steps to Finding Your Next Home in Northern Arizona
Follow these five steps—and complete the corresponding worksheet offered —to assess your priorities, streamline your search, and choose your next home with confidence.
2. What can we afford? - Many buyers become so caught up in how much they can afford that they don’t realize their total buying power—that is, the total amount of purchasing potential they actually have.
3. Ask Questions - Some important questions to ask include:
While walking around the property, have an eye for detail. If anything looks unfinished or in disrepair, make a note of it. Although it might not be significant enough to keep you from buying the home, it could be enough for you to request a lower price. Keep a list of all of your concerns. After the showing, express your concerns to your realtor.
4. Be Open-Minded - Your dream home could be hiding under your nose. But to find it, you need to be open-minded. Keep in mind that you could make a few changes to the home to make it more your style.
5. Work with an Experienced Real Estate Agent
Flagstaff Home Seller Advice
There's an unexpected outcome of the pandemic shutdown: Home prices are surging right now.
What explains such explosive growth in the time of a pandemic? There are three reasons:
- First, buyers are rushing back into the market. Folks who were hoping to buy a new home during the spring peak season can finally do so.
Also, due to quarantine, some people are re-evaluating their current homes more carefully and possibly looking to buy a home with more space. This is pushing up the number of buyers even more.
- Second, we currently have record-low mortgage rates. For home buyers, this makes it a particularly attractive time to get into the market.
- Third, there is very little inventory.
So there you have it: tremendous demand for homes and very limited supply. The upshot is that home prices are rising, and homes are seeing more bidding wars.
INVENTORY
There is an extreme lack of inventory. In residential real estate, how many items are available in relation to how many consumers want to buy that item is called months supply of inventory. A normal market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.
What does this mean for you?
With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Simply put, if you're looking to sell your home, it's a great time to do so. If you were to list your home in the current market, you could sell it quickly and for top dollar. Check out our 5 Tips for Attracting Buyers on Virtual Tours During COVID-19
In case you're curious how much your home is worth in the current hot market, take a look at the following home value calculator, which is based on recent (area) sales: Click below and Enter your address to find out what your home is currently worth
If you have any questions, give me a call at 928-606-6749. It's a confusing and challenging time, even more so if you're thinking of selling your home, but I'm here to help.
LET'S CONNECT TODAY!
Whether you connect by phone or video chat, we can help you understand how to safely navigate the housing market so that you can prioritize the health of your family without having to bring your plans to a standstill. Give us a call at 888.446.5602 or email kelly.broaddus@exprealty.com. Whether you’re looking to buy or sell, we know the best protocol as well as the optimal resources and lenders to help you through the process in this fast-paced world that’s changing every day.
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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