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Strong Home Sales in Flagstaff

(Published on - 7/23/2020 5:29:50 PM)

Home sales in Flagstaff for the first 6 months of the year have been far stronger than expected.

Note that before I start, you will see all these stats in the following chart.

I pulled statistics on July 12th for all home types, Single Family, Townhome, Condos and Manufacture in the General Flagstaff area.


For all categories, for the first 6 months plus a few days, we have sold 13.9% more homes this year than the prior year. 
The Median Price is up 8.1% to $413,459. 
During this same time-period, we have had -2.1% fewer homes come to the market and the Days on Markets has stayed stable at 107 days. 

The Absorption Rate, the number of months it would take to sell all our homes under the current home sales trend is 3.44 months, that is down 1.2 months from last year.
The Experts in the Real Estate field feel that 6 months is a nice healthy point to be, any less and it is a Sellers’ Market, any more and a Buyer’s Market.

One last stat I dug up, 22.04% of the homes sold this year were cash sales, compared to 19.76% back in 2010, so this figure though climbing slightly is not out of the norm for Flagstaff.

Using information from ShowingTime, the system we are using in Flagstaff as well as a lot of the nation to schedule showings, we see that we are on the same track as the rest of the nation on showings.

  Single Family homes, which account for 67.59% of the sales in Flagstaff, sold at even a more robust rate with 18.9% more than homes than the prior year. Median Prices are up 10.9%* to $474,000, adjusted to $450,000 or a 7.4% increase (see Note below). We had 8% fewer homes come to the market. The average price per sq. ft. has risen to $247.00 from $223.23.
Condominiums you will notice in the chart below, we sold 13.2% fewer Condos, with prices up slightly at 2.3%. This lackluster showing is caused by the lack of Condos in the Flagstaff market with no new being built.
Townhomes showed the highest increase in number sold at 32.0%, with Median Pricing climbing 7.3% to $357.186. The increase in numbers sold is mainly attributed to the sales in a couple of areas in town- Presidio in the Pines and Railroad Springs- 
 which have been bringing more townhomes to the Market.
Manufactured home sales climbed by 7.5% with the Median Price climbing 7.5%.

Note,
* You noticed I put an ‘*’ next to the Median Price for the Single-Family homes above.
This figure does include the Gated Communities we have in Flagstaff (Forest Highlands, Flagstaff Ranch and Pine Canyon).
It is interesting to note that the overall home sales in these three areas are up substantially at 65.3% through July 15th, with the median price climbing 15% to $954,720. Along with selling 65.3% more homes, they have had -8.6% fewer homes come to the market. 

The question begs to be asked? 

What is happening with the higher priced homes? There was an article in the Vale area, they said that their buyers are looking for more mountains, clean air and less crowded destinations for their alternate home.  

 

So taking these out of the mix for single family homes, we have a slightly lower median price for Single Family Homes in Flagstaff, at $450,000.

In Summary;

We are in interesting times which we are all aware of. What we did not expect was what has happened in the housing market. 
Will this trend continue? Great question.
As long as the mortgage rates stay at the current level, which they are expected to through the year, and inventory stays at historic lows, which they are expected to, then we may see this trend through the rest of the year.
There are of course a few things that could sway the remainder of the year, 
Covid-19 and the coming November Elections.
But today, 
If you are a Seller or thinking of Selling, you should be reaching out to me, this may be a great opportunity and we can discuss if this is the right time for you and your family.
If you are a Buyer, not all is lost, there are homes coming to the market daily, you need a strong local lender and a full time Real Estate Agent helping you find the right home, so again, reach out to me.

We did not cover my Native Wildflower garden, but it is doing very well, nothing blooming or even close to that stage though. Will cover more about that next month. If you missed my blog about the Wildflowers, click on the link above and that will take you to that newsletter.

In the meantime,
There is lots to talk about, so please never hesitate to reach out, besides Real Estate, we can talk about our upcoming Arizona Trail 6-day hike coming in October, my Wildflowers, or most any subject you would like.
Am looking forward hearing from you.

Jeff

 

About the Author:

Jeff Ross
Realty Executives of Flagstaff
Phone: 928-773-9300
Direct: 928-225-3511
Mobile: 928-607-5556
Email: JEFF@ALLFLAGSTAFFHOMES.COM
Website: www.AllFlagstaffHomes.com

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