Realty Executives of Flagstaff

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Realty Executives of Flagstaff


A Flagstaff Overview of Housing Market in 2021, Will It Change?

(Published on - 3/2/2022 4:53:12 PM)

What do you do when you have a question, and you want to find a quick answer? Chances are, you do what we all do! You Google it.

There’s nothing wrong with that. However, I’m sure you’ll agree, it’s not easy to sift through all the information you get from a search to find an answer that’s accurate, up-to-date, and relevant to your situation.

After all, you don’t want to end up acting on bad information.

That’s where we can help.

You see, when it comes to real estate, you want to make sure you get the most accurate information possible, based on the most up-to-date data that pertains to this local market.

We can provide that.

But, more than just solid information, we can also give you insights that make that information relevant to you. For example, we can tell you approximately how much your home would likely sell for today.

So, if you need the best information, contact either of us, We would be happy to help.

An Overview of 2021 and What's to Come

Well, it was an interesting year in Real Estate in Flagstaff and Northern Arizona in 2021 and as we progress into 2022, the market has not changed.

All through 2021 we were plagued by extremely low inventory of homes, and a very strong buyer base.
These two factors contributed to a median price increase across all types of homes at 20.6% increase and a median price of $540,000. You will see all the stats for individual home types in the charge below.

Cash sales rose to 27.56% of all homes, up from 19.86% in 2010. Days on Market dropped from 92 days in 2020 to 52 days in 2021 and the average per sq. ft. price skyrocketed above $310.40 for 2021, up from $250.46 in 2020, a figure we never saw coming.


Now to some, this housing price increase is reminiscent to the early 2000’s which then brought on the housing crash in 2009’ish.
BUT HONESTLY, today and 2009 are as different as an apple and orange. 

Back to 2009, we had loan practices that allow folks to refinance their homes and use that money for most anything, along with very loose qualification practices, driving a pricing frenzy that drove up pricing of homes. On top of this, we had an overabundance of homes on the market.
As an example, we had as many as 500-700 homes on the market, and as few as 50 buyers. We had so many homes, so few buyers and the sellers had to sell for assorted reasons, so prices dropped, along the way those sellers had refinanced homes at higher values to draw out the cash from this you saw and remember the housing crash and rise in foreclosures.

Before we move forward, yes, we continue to have some type of Foreclosures but as the slide to the right indicates, they will be extremely rare.


Move to today, the situation has reversed. As I write this article on Wednesday Feb 16th, we had only 47 homes of all types on the market in the General Flagstaff area. We should have 300-500 homes on the market. With that said, we have as many 500 buyers out there waiting to find the right home, and as last year showed, 28% of those are cash, so they are not hindered by the loan and appraisal process, so offer prices are coming in some cases well above asking list price. It is seldom we see an offer and sold price that is at list or below. 

I bring this up because the comment we are getting throughout the Real Estate industry, ‘The Bubble will Burst’.
Well it could happen, but the cause will be different, 2009 it was mainly caused by a huge number of homes and a slim number of buyers.

Today reverse that, with very few homes and very large number of buyers.

So, what can cause a dramatic decrease in housing? 
Great question, in today’s market, more than likely something that causes loss of jobs, thus those losing their jobs need to sell their homes. At present our economy may not be showing any signs of that type of weakness. We are back to ‘Time will Tell’.

Since we are in uncharted territory, few know what will happen in 2022.
We have lots of builders out there at full capacity, with new developments on the books. Is it enough? Are there jobs to sustain today’s prices? Or will buyers slowly move to the outskirts of Flagstaff: Bellemont, Parks, Williams to the west, or Winslow to the East, or even Munds Park and further, to the South?

What we do know today,

You are in one of the strongest markets to sell with huge demand for your home, we do not know how long this will last. Talk to your experienced Real Estate professional to make sure the time is right for you and your family.

Today more than ever, you will lean on that experienced Real Estate agent to wade through the many offers, along with the confusing and complex contingences written into the offers by the buyer's agents to sway your decision. 

Be patient, find an experienced Real Estate Professional that can guide you through today’s market - a professional that is there for you and will not leave anything to chance.

About the Authors:


Jeff Ross * Renee Gaun
Your 1st Choice in Real Estate®
Your Team for Success

928-607-5556  Jeff
928-606-6232 Renee


15 E. Cherry Ave
Flagstaff, AZ. 86001




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