Housing Shortage? What's Happening in Flagstaff

The Flagstaff Housing Market has been extremely active over the past 3 months and truthfully this full year.

Presently our biggest issue and yes even concern is that we have so many more buyers than we have available homes on the market in Flagstaff.

There were some figures that stood out in July for all types of homes.
In Flagstaff, we sold 25.8% more homes for the month of July,  but had -35.1% fewer homes on the market compared to a year ago.
Year to date thru July 31st we have sold 19.1% more homes than last year.

A little more detail thru August 20th, year to date:

For all types of home sales (Single Family, Condo, Townhome, and Manufactured).

We have sold 19.4% more homes
We had -2.9% fewer homes come to the market
Our Median price is up 8.8% to $420,000

For just Single-Family Homes

We sold 22.9% more homes thru August 20th.
We had -5.9% fewer homes come to the market
Our Median Price is up 10.3% to $480,000

But WAIT, there is more to those numbers than meets the eye!!

When looking at the Single-Family homes in our 3 Gated Golf Communities (Flagstaff Ranch, Forest Highlands, and Pine Canyon)
We sold 113% more homes. 
We had 2.8% more homes come to the market.
The Median Price has climbed 20.1% to $985,000.

So in Reality for the Flagstaff Single Home Market, without the gated communities in the figures
We have sold 17.3% more homes
We had -9.1% fewer homes come to the market
Our Median price is up 6.0% to $440,000

Continental Country Club             2 homes Elk Run                                         3 homes Cheshire                                       0 homes Coconino Estates                         1 home Boulder Pointe                              0 homes University Heights                        1 home Ponderosa Trails                          4 homes This highlights the lack of homes we have on the market today to supply our Buyer’s needs.

What is to come?

Great question and one I am not sure anyone has an answer to.
When taking out the gated communities, our median price is not rising that fast,--- so far?
But our inventory, or Absorption Rate as the experts in the Real Estate field like to use is just at 2.9 month’s supply of homes through the end of July.
That means it would take only 2.9 months to sell every home on the market today!
The experts would like to see 6 months supply to have a balanced market.

Bottom line,

We are in a market that is very favorable to a Seller and tough on the Buyer. As long as interest rates stay low, which they are expected to through the end of the year at least, the Buyers will continue to come to the table. We are now looking for more homes to come to the market to supply those buyers. Am sure this will bring up a lot of questions, so please never hesitate to reach out to me. If you have an interest in either Selling or Buying, I am here to help make the best choice for you and your family.

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