Flagstaff Real estate market data, AZ Provided by The Kelly Broaddus Team of REMAX Fine Living / by Josie Uy
Flagstaff Home Sales Slump Amid Inventory Issues
In the Flagstaff real estate market, conditions continue to favor sellers over buyers in the lower priced homes. With higher price ranges, conditions continue to significantly favor buyers even as more homes become available compared to last month. The Northern Arizona Multiple Listing Service reported a total of 113 Flagstaff homes sold in July 2016. This represents a 16% decrease compared to July 2015.
"Severely restrained inventory and the tightening grip it's putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month," Lawrence Yun, NAR Chief Economist
July's decline might be signalling that the market is slowing down, following seasonal patterns and certainly bears watching. Another emerging issue, delays in appraisal, may have also contributed to July's slump. Yun believes that demand will not go away, but buyers are less than excited over anemic inventory.
July housing prices in the greater Flagstaff region continued to rise. The median sale price came in at $354K up 5% from the same period a year ago and up 6% from June. This number once again puts us closer the top of the real estate market in 2006-2007 but is still low compared to May 2016 at $368,000.
It is apparent that rising rents, tight inventory and an increased demand for low cost housing is upwards pressure on home prices. New construction homes for sale available on the market has not put a dent on the inventory shortage and are priced out of reach of the first time homebuyer. Strong price appreciation makes it hard but not impossible for renters to transition to owners.
Homebuyer
Are you a first time homebuyer looking to buy a starter home? The selling season is ending and NOW might be a better time to buy a home below $300k. Inventory has slightly improved with more homeowners and investors putting their homes on the market to take advantage of the housing recovery. You might be in a better position to find a home that suits your needs Choices are still limited however, with only 3 months supply available for Flagstaff homes homes for sale below $300,000.
On the $300,000- $600,000 price range, supply of Flagstaff homes for sale is normal with 6 months inventory available.
With inventory levels rising over the last month and mortgage rates still near historic lows 3.375%, it is still a good time to buy a home!
Flagstaff luxury home buyers and trade-up homebuyers will not find inventory issues.
Homeseller
Home price appreciation in Flagstaff makes selling favorable to homeowners and investors. It is important to consult with a real estate professional knowlegeable about market conditions in your area to get the most out of your transaction.
"With many homes selling at or above asking prices, homes are often not appraising at high enough values to qualify for a mortgage, which has led to delays in closings."- Anika Khan, senior economist at Wells Fargo Securities NY
July 2016 Flagstaff Marketwatch Summary
Total Home Sales- 113, down 16% vs last year
Median Home Price- $354,000
$2,300,000- Price of Flagstaff's most expensive single family home sold in July 2016. On the market for 69 days and a bit more expensive than June 2016's most expensive ($2M), this Pine Canyon home on 2027 E Barranca DR had 4 bedrooms and 5 baths and over 5K sq ft.
$418,164 - Price of the most expensive Flagstaff townhome sold in July 2016. A new build in Miramonte Mountain Reserve, a townhome community consisting of 14 duplex homes with mountain, community park and forest views.
$71,900- You can still buy a Flagstaff home under $100K! The least expensive Flagstaff home sold in July 2016 is a 2 bedroom fixer upper on 10 acres. Located in the Apine Ranches area, the new owners will enjoy the fantastic views and peaceful offgrid living not far from town.
493 days on market- This is a short sale. Continental Country Club condo sold after almost a year and a half on the market. Closing a distressed property is usually slower than a raditional home.
For more information about the Flagstaff real estate market, recent sales and coming soon properties, please contact us at 888.446.5602 or email kellybroaddus@remax.net.
Download the full Flagstaff Market Report here
You might be interested in...
What is My Flagstaff Home Worth?
How to Amp Up The Resale Value of Your Flagstaff Home
August 2016 Flagstaff Market Report