Realty Executives of Northern Arizona
Here is an update through the end of August and then through the middle of September.
The Month of August was one interesting month in Real Estate, to say the least!
Interest Rates are staying low, Buyers are out in droves trying to take advantage of those rates, and Sellers have been hesitant to put their homes on the market for a number of reasons.
What were some of the reasons for fewer homes coming to the market? There may be two primary reasons, the Covid situation and the seller hesitant in allowing people in their homes, second, if they sell and downsize or even upsize, will they be able to find a home?
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For the month of August for all home types, Single Family, Condo, Townhome and Manufactured.
We sold 24.6% more homes. This is 218 homes sold compared to August 2019 of 175 homes. Year to date we have sold 20.5% more homes.
For the month of August, we had -12.7% FEWER homes come to the market.
At the end of August, we had -38.5% fewer homes active, available to purchase on the market compared to the year before.
Our Absorption Rate, the number of months it would take at the current sales rate to sell all our current homes on the market, plummeted to 2.73 months, down from 5.2 months for August 2019.
Our Year to Date Median Sales Price for all home types is up 9.09% to $420,000.
Switching gears some,
Our Single-Family home median prices thru September 16th, 2020 are up 11.9% to $485,000.
Year to date again for single family, we have sold 25.1% more homes, while during the same time frame 4.0% fewer homes come to the market.
In numbers, we have sold 175 more homes this year than last and 44 fewer have come to the market, a difference of 219 homes, which is a big difference and no wonder we have such a tight inventory of active homes on the market.
What do we see in the future?
That Crystal Ball is a little cloudy,
What we do know is that interest rates from recent reports may remain low for quite some time.
Buyers are out there; they have not found the homes they need today because there are so few to be had, so they will continue to look.
There is a chance that more homes may start to come to the market as sellers see the upside in selling in the current market, but it still comes down to where will they go?
Then there is the Second Home Market?
There is a possibility that those owners may decide it is time to take advantage of this hot market, especially if they have not been using their second home as much as they had hoped or family dynamics have changed.
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There are lots of dynamics happening in the Real Estate market and I would enjoy speaking to you if you have any questions.
Please never hesitate to reach out, as I have said in the past, if it is not about Real Estate, there is Gardening, Hiking, Biking or Golf we can talk about. I would enjoy visiting.
Stay Safe and Healthy during these Interesting Times
Jeff
About the Author:
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When most people think of Arizona weather, they picture a hot, desert climate. Flagstaff weather is nothing like the rest of Arizona. Flagstaff enjoys all four seasons: summer, fall, winter and spring.
What is the weather like in the summer?
Summers in Flagstaff have sun, wind, and rain. There are the summer ‘monsoons’ that bring rain every afternoon for a few weeks in the middle of summer. The average daytime temperature is anywhere from 65 degrees to 80 degrees; nighttime averages range from 35 to 55 degrees. One thing to remember about summer: always have an umbrella—a sunny morning can easily turn into a rainy afternoon. The best time to visit for warm-weather activities is from mid-June to late August.
What is the weather like in the fall?
Fall is full of colorful leaves and cool, crisp days. You’ll want to wear layers (a scarf, sweater, boots), because the temperature will fluctuate as the sun rises and sets. The average daytime temperature ranges from 50 to 75 degrees; nighttime temps range from 20 to 40 degrees. It’s bit early for snow just yet; the first snow is usually around Halloween but does not stick or last very long.
What is the weather like in the winter?
Surprise! Snow, snow, and more snow. Flagstaff winter days are cold and snow filled—not what many visitors expect. Some winters are milder than others so check the weather report before making plans. The average daytime temperature ranges from 20 to 40 degrees. The average nighttime temperature ranges from 10 to 20 degrees. The coldest day of the year on average is January 4, with a low of 19°F and high of 42°F.
What is the weather like in the spring?
Spring days are a mix of everything from snow and rain, to sun and wind. You will definitely want to check the weather report before heading out. At high altitude (Flagstaff is around 7,000 feet) the sun is more intense—drink plenty of water and rest often. The average daytime temperatures range from 50 to 70 degrees; the nighttime ranges from 20 to 30 degrees.
Average Annual Days of Sunshine: 266 days
Average Annual Precipitation: 22.96 inches (58.32 cm)
Average Annual Snowfall: 108.8 inches (276.35cm)
WEATHER INFORMATION
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.
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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
| I looked at a couple communities in Flagstaff to see how many Single-Family Homes were on the market as I write this, Friday morning the 21st of August |
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. |
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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,
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We are in a market that is very favorable to a Seller and tough on the Buyer.
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About the Author:
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Who Knew. . .that Flagstaff was named the world’s first International Dark Sky City in 2001? The designation is awarded to towns and cities “with exceptional commitment to and success in implementing the ideals of dark sky preservation and/or restoration, and their promotion through quality outdoor lighting.” That’s why you see light fixtures that aim light downward and/or are shielded on the sides. Lightbulbs are incandescent and compact fluorescent, yellow in color to minimize glare and sky glow. Look up and you’ll see the stars like you’ve never seen them before! On a clear night, you’ll want to head up to the Lowell Observatory for telescope viewings.
Dark-sky protection in Flagstaff goes back to 1958, when the city enacted the world’s first law to protect night skies, banning advertising and searchlights. There are two major observatories: Lowell Observatory, and the United States Naval Observatory (USNO). Between the two of them, there are more than $125 million in telescope assets in the area. Keeping the skies dark is necessary for astronomical research.
In 2018, Livability.com ranked Flagstaff as the Number 1 dark-sky community that takes stargazing seriously. It is said that even in the city, Flagstaff residents can see the Milky Way overhead as long as they’re away from streetlights. Flagstaff has always valued its environment, and that doesn’t limit itself to the surrounding canyons, deserts, and mountains.
It comes as no surprise that Northern Arizona is frequently listed as one of the top places in the world for stargazing. With clear skies and low light pollution, you can enjoy endless stargazing almost any time of year. Flagstaff sees on average over 280 sunny days per year, meaning dark cloudless nights for stargazing. Head to the Lowell Observatory, Buffalo Park, or take a scenic drive along the Sunset-Wupatki loop drive for the some of the best stargazing in the country. During the summer months, Walnut Canyon offers free stargazing hikes. Also be on the lookout for the annual Festival of Science, featuring more stargazing parties and events than you could possibly imagine.
Are you looking for ways to take your outdoor adventures to the next level? Check out these smartphone applications that may be just what you’re looking for.
14ers.com
This is the smartphone version of the website known and loved by many. It allows user to download images and maps to their phone so that they can be accessed without a cell phone connection. If you’re a hiker, having this app on your phone is a must.
MTN Project
With this app, users put the power of many rock climbing guides into their pocket. Find routes searchable by location and read user review to know what to expect. This app also lets users keep track of which routes they’ve already climbed. Sort routes by discipline, difficulty, star ranking and more.
MTB Project
No cell required, completely free. This is the mountain biking counterpart to the MTN Project. You’ll always know your exact position on the maps and find new trails, all accessible offline.
SkyGuide
Want to add some stargazing to your camping trips? Just hold it overhead to automatically find stars, constellations, planets, satellites and more. With the cinematic time controls you can even see what the sky looked like the moment you were born!
PeakVisor
This app uses augmented reality to allow users to identify distant mountains and elevations. It’s great to use at the top of a mountain so that your know what mountains you’re admiring from afar. It puts 3D maps in the palm of your hand, and it’s free.
AllTrails
This is a great app for finding trails in a given area. You’ll have access to 100,000+ trail maps, along with user reviews, images, and trail condition updates. It turns your phone into a GPS tracker. You can record details of your hike and share your adventures with friends and family.
Strava
Users can track running and cycling with GPS, join Challenges, share photos from your activities and follow friends. Track your performance over time, and even set up custom segments along trails to track performance over time in a highly tailored way. It’s a great motivator if you need an extra push in your training.
Realty Executives of Flagstaff
We've been serving Flagstaff and its surrounding areas for over 43 years.
We’re the experts on the area, from the heart of town, to the top of the peaks.
Where the Experts are - Serving Flagstaff and Northern Arizona since 1977
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