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.

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:

Looking for free fun activities around Flagstaff this summer?

We’ve got you covered! 

Here is the list, with a more detailed description below:

• First Friday Art Walks
• Picture Canyon Tours
• Disc Golf
• Geocaching
• Self-guided Walk This Talk Historic Route 66 Tour
• Movies on the Square
• Summer Concerts in the Park
• Self-guided Haunted Flagstaff Tour
• Flagstaff Selfie Trail
• Solar System Walk at Lowell Observatory
• Self-guided Flagstaff Public Art Tour
• Flagstaff Brewery Trail
• Lunar Landmarks Trail

First Friday Art Walk: Each first Friday of the month, art galleries and businesses in historic Downtown Flagstaff open their doors from 6-9pm with special art exhibitions, performances. Live music, treats and more. It’s Flagstaff’s monthly street party – the ArtWalk is a night both locals and out-of-towners attend and enjoy.  

Picture Canyon: The Picture Canyon Preserve is a natural and cultural amenity located in northeast Flagstaff. This easy walk through the riparian landscape includes significant Northern Sinagua petroglyphs, and the opportunity to learn about the ecology, geology, and archaeology of the area. It also includes a section of the Arizona Trail, an 800+ mile trail that connects Mexico and Utah.  

Disc Golf: There are numerous disc golf courses around town, accessible for free. If you’d like to make this more than a passing hobby, The Flagstaff Disc Golf Club is an organization that hosts weekly leagues, annual tournaments and beginner clinics. Their website also includes courses and maps that can are available for free.  

Geocaching: Flagstaff is a partner in the Historic Arizona Route 66 Geocaching Project, offering visitors a new way to explore the Mother Road while traveling across the state. There are multiple caches to be found in Flagstaff. Each cache includes a log book and historic information about where the cache is hidden. 

Self-guided Walk This Talk Historic Route 66 Tour: Also known as “The Mother Road”, Route 66 continues to bisect Flagstaff today. This self-guided tour begins at the Historic Train Station, passing by classic drive-in motels and Flagstaff Landmarks of old. Find a map here, and use your mobile phone to dial and listen to a recorded history at each of the ten designated locations on the tour.  Recorded tour: 928-218-2926  

Movies on the Square:  Each summer the Flagstaff Downtown Business Alliance presents a FREE family friendly evening on Heritage Square – Flagstaff’s downtown living room. For the month of June, this year will be transformed to a Drive-In movie series. Every Saturday evening for the month of June, it will be located in the parking lot on the corner of Leroux Street and Cherry Avenue in Downtown Flagstaff. There are limited parking spaces available, so visit the website to reserve a spot. The parking lot will be open at 7pm, and the movie will begin at sunset (around 8pm). Boxed dinners and movie treats will be available for purchase! (more info)

Summer Concerts in the Park: The Summer Concert Series runs Friday evenings all summer long. They are held at Heritage Square, and are free, family-friendly, and showcase Flagstaff’s best local artists. For a schedule and other information, click here. 

Self-Guided Haunted Flagstaff Tour: With more than a century of haunted history and ghostly legends about bank robbers, ladies of the night, eccentric hotel guests and unfortunate lovers, Flagstaff has earned the reputation as one of Arizona’s most haunted cities. Free self-guided map available at the Flagstaff Visitor Center or by download here. 

Flagstaff Selfie Trail: No need to search for the best place to stand for your selfie with Flagstaff’s iconic scenery, the Flagstaff Selfie Trail will point you to the perfect spot. The Flagstaff CVB has provided a map with directions to one-of-a-kind selfie spots throughout the city and placed ground medallions at each location. Experience the neon of Route 66, the architecture of historic downtown and the seasonal favorites of the surrounding area. #Flagstaffselfie to share with friends! Download a printable pdf here. 

Solar System Walk at Lowell Observatory: Walk a scale distance model of the solar system and learn fun facts along the way. For more information or to plan your visit, click here.  

Self-Guided Flagstaff Public Art Tour: Flagstaff has an extensive Public Art program coordinated through the Beautification and Public Art Commission at the City of Flagstaff. More than forty pieces of public art represent the heritage of the area. Each piece tells a story, some inspiring, some meditative and others that intend to leave a legacy for future generations. Download the Flagstaff Public Art Map for information on each piece and where to find them. 

Flagstaff Brewery Trail: This is your self-guided beer tasting adventure. Flagstaff’s nine local breweries have something for everyone’s craft brew palate, from distinctive IPAs and light-hearted Sessions to Limited-edition brews and Kolsch-style ales. Flagstaff is being recognized as a Leading Craft Beer City. Grab a passport here or at participating breweries, or the Flagstaff Visitor Center. 

Lunar Legacy/ Landmarks Trail: Did you know every astronaut who walked on the Moon trained in Flagstaff? Now you can walk in their footsteps. Learn about Flagstaff’s impact on our lunar explorations with this fun passport and map. Visit Apollo Astronaut Training Sites and Attractions celebrating Flagstaff’s scientific role in the Apollo Moon Missions. 

Now get exploring!

(Please check ahead of time for any COVID-related closures, cancellations, or protective measures)

Do you know what is tax deductible when buying a house? Tax season is an excellent time to be a homeowner. Unlike renters, you get to take advantage of some tax benefits that are geared towards homeowners – tax breaks that can amount to thousands of dollars in savings, and sometimes even more.

One of the questions clients often ask is, what is tax-deductible from purchasing a home? Nobody wants to leave money on the table when it comes to taxes. The Federal Government gets enough of our hard-earned money as it is!

Considering how much money you may have spend on your home, or may still be spending, you deserve to get a break. But you can only take advantage of tax breaks if you know about them.

So, read on, and learn about the tax deductions that may benefit you and your finances from the home you bought last year. Homeownership tax deductions are plentiful if you know where to look!

Make sure when tax time comes around, you have everything detailed for your accountant to handle. Any good tax advisor will have a handle on all of these tax deductions that can be claimed after a home purchase or a home sale.

Here are the homeowner tax breaks you should be taking advantage of come tax time!

Mortgage Interest

Some tax breaks for homeowners are only mildly beneficial, but others – like mortgage interest deductions – can result in significant savings. Tax law says that you get to deduct up to a million dollars’ worth of mortgage interest. If you are like most homeowners, you are not going to come close to paying a million dollars in interest, so that means you get to deduct all of it.

The mortgage interest deduction is particularly beneficial in the first years of ownerhip, as most home loans make you pay back interest first.

You may wind up easily deducting $10,000 or more of interest in your first year. It all depends on how much your loan was for and how much interest you paid.

You may be wondering whether you can deduct mortgage interest if you hold a reverse mortgage. The IRS considers a reverse mortgage as a loan advance and not income.

So the money you receive isn’t taxable. Additionally, the interest that’s accrued on a reverse mortgage isn’t tax-deductible until the loan is paid off. With a reverse mortgage, you aren’t able to take a deduction for the interest each year like you would with a regular mortgage.

Property Taxes

Property taxes are another deduction that can be ideal for your finances, depending on what part of the country you live in. Years ago, all of your property taxes were deductible. Unfortunately, this is no longer the case. Deductions for property taxes took a significant hit in the last change to the tax code.

It used to be if you lived in an area where your property taxes are high, you could wind up deducting thousands of dollars.

Of course, if you live in an area where you have low property taxes, the benefits are much less noticeable. Whatever the circumstances, it is still worth your time to take the property tax deduction.   

You are able to still get a tax break for paying property taxes, but there is now a limit. You’re able to deduct up to ten thousand (five thousand if married and filing separately) of property taxes in combination with state and local income taxes.

Paying their fair share of real estate taxes is something people are sensitive to. While working as a real estate agent, one of the most common questions I am asked is how to challenge real estate tax assessments. Nobody wants to pay more real estate taxes than they should. Lots of folks think they are paying more in relation to their neighbors.

One thing many people do not realize is that second home real estate taxes are also deductible as well. So if your primary residence is up North and you decided to buy a getaway home down south in the warmer weather, you will be able to deduct the real estate taxes on that property too.

Home Sale Exemption

If you sold your home last year and made money off of the sale, the money you made – your capital gains – is free from taxation as long as you are below the threshold. As of now, a single person can make up to $250,000 from a home sale, while a married couple can make $500,000.

That tax-free profit can be used to upgrade to a better home, or for whatever you like. Keep in mind, the property must have been your primary residence to qualify. Real Estate capital gains tax deductions are one of the most significant breaks given to homeowners by the Federal Government.

If you have sold your home in the past year, it is a good idea to speak to a tax professional to have a clear understanding of your particular tax situation. The capital gains exception is a homebuyer tax deduction you won’t want to forget.

Private Mortgage Insurance (PMI)

Homebuyers who are not able to pay a full 20% down on a property are usually required to carry what’s known as private mortgage insurance. Private mortgage insurance is a type of insurance that protects the lender in the event a borrower defaults on the loan. For many homebuyers paying private mortgage insurance is a cost of doing business.

It is, however, possible to avoid paying PMI. Luckily, if you made less than $100,000 last year, you can deduct the money you paid for the PMI. How much benefit you get out of your deduction will depend on how much you spent for PMI, which can vary considerably.

(The PMI deduction was set to expire after the 2014 tax year but was extended for 2015, 2016, and 2017 tax years. You should be aware that the deduction for qualified mortgage insurance premiums is reduced if your adjusted gross income is over $100,000, and if it’s over $109,000, you can’t claim the deduction.)

Unfortunately, the PMI tax deduction has been taken away. You are no longer allowed to take a tax deduction for private mortgage insurance.

Borrowers should also be aware that it is possible to terminate paying private mortgage insurance once they have crossed the twenty percent equity threshold.

Legally lenders are supposed to automatically cancel PMI once you get to twenty-two percent equity in your home. It makes sound financial sense to stay on top of the market value of your property.

Residential Energy-Efficient Upgrades

There are tax benefits for homeowners who upgrade their homes with a focus on energy efficiency. There are a lot of different possibilities for energy-efficient upgrades, ranging from big ones like solar panels, wind turbines, and solar water heaters to less substantial updates, like ceiling fans that are energy efficient.

The right home renovations and upgrades – like solar panels – you can get up to a 30% credit. For others, like a ceiling fan, you may only get a $50 credit. There are also credits for roofs, insulation, water heaters, and more.

Check Energy.gov for information on energy efficiency tax credits. Use this resource to calculate the home tax deductions you are eligible for with your home improvements.

As a homeowner, make sure you understand that not every upgrade you add to your home equals a one for one value increase.

For example, I know lots of people who think adding solar power to their home will increase the market value by whatever the installation cost happens to be. Not true! In fact, in some areas of the country, there may be very little return. If you have to put solar panels on the front of your home and it is now unattractive, don’t expect a high return on investment either.

If you have installed energy-efficient upgrades, do your research and verify what credits you qualify for. You may be surprised to discover just how much of a break you get for your improvements.

Points

Another essential tax deduction to remember when buying a house is the points you paid on your mortgage.

Mortgage points are attractive to some buyers because they allow you to drive down your interest rate or to help with origination fees. Points make sense for some buyers, while not being worthwhile for others.

But if you were a buyer who bought points, you can take advantage of the tax break that comes with it. A point is equal to 1 percent of your loan amount or $1,000 for every hundred thousand borrowed. For example, if you are borrowing $200,000, a point would equal $2,000.

Generally speaking, it typically makes sense to pay points when you plan to be in the home for a while. By paying points, you are bringing the interest rate down on your loan.

If you only intend to stay in your home a few years, paying points does not make sense. An outstanding mortgage professional should be able to show you how long it will take to pay back the points. Nonetheless if you already paid points in the past year, they are a home tax deduction you will want to remember.

Home Improvement Loan Interest

There are particular loans for home improvements that allow you to get a tax break on the interest you pay, like a home equity loan or HELOC.

Much like mortgage interest, the tax benefits of this credit will be most significant for the first few years of the loan when most of your payments are going towards interest. Home improvement loan interest tax breaks can be sizable, sometimes in the thousands of dollars.

If you took out a home improvement loan when purchasing your house, make sure you check and see if you have a tax deduction coming your way!

Home Office Deduction

Your home office, if it is dedicated purely to work, could get you a tax break. The deduction is calculated based on the square footage of the office, at $5 a square foot.

The room needs to be used purely for work, though, because if you get audited, the IRS may decide the deduction is not valid if anything else is done in the room.

Home office tax deductions are not something you want to fool around with. If you are not sure about whether or not you qualify for a home tax deduction, speak to a tax professional.

Home tax deductions can get complicated. If you are the kind of person who just inputs your W-2 and gets your refund each tax season, dealing with the details of all the different tax deductions you are eligible for can be a little intimidating.

Various online tax programs can help guide you through filing with deductions, or you can always hire an accountant to assist you with your taxes. While it may cost more than a more simple tax return, the financial benefits that come from your home tax deductions will usually more than make up for the price of getting help.

Because filing as a homeowner is more complicated, be sure to allow yourself plenty of time to fill out your return and file before the deadline. Waiting until the last minute, especially if you have never done a more complicated return, is a recipe for stress and possible mistakes. Good luck, and be sure you take all the home buying tax deductions you are entitled to!

To our Local Flagstaff Market.
What is really happening in our market?
Today, the housing market is about as active as we have seen in years.
Why?
     As of the end of May

• We had 16% fewer homes on the market then the year before
• Mortgage interest rates are hovering in the 3.5% range and expected to stay that way through the end of the year
• Our Absorption Rate, the number of months it will take to sell all the homes on the market is siting at 3.4 months, down from 4.5 months in 2019.
• Experts in Real Estate say 6 months is a good figure, any more and we are in a Buyer’s Market, any less and in a Seller’s Market.
• We are Strongly entrenched in a Seller’s Market

So Today,
Fewer homes on the market, not enough for the current number of buyers out looking.
Many homes priced within the market value they are located  in are getting multiple offers. 
Next month will be the end of the 1st half of 2020, at that time I will give a more detailed look into our market. 
Until then, please never hesitate to reach out,

 Wild Flower Garden

As mentioned last month, I got some Native WildFlower seeds from 'The Arboretum at Flagstaff' and planted those on May 10th.
Things are progressing, but interesting to know that my friends Megan and Chads garden is way ahead of mine and they planted theirs just a week before mine. This does show how the micro-climates and daily sun levels affect plant growth around Flagstaff.

Here are the Native Plants that sometime in the future will mature.
I did talk to a friend who has gone though the Master Garden program, she planted seeds last year, and then this year. Those that were planted last year are up and almost blooming and those planted this year are about where mine are, out of the ground an inch or so, she said patience:) is the key, the time will come.

As you look at the two pictures, the top section gets slightly less sun and those are head of the bottom section that gets more sun. Though neither get much sun until 1:00'ish each day.

Also at least at this point, there are slight different seeds maturing and sprouting in the area that gets more intense sun?

Below is the list of seeds that were in the packets.
I was going to do close-ups of  the different sprouts coming up, but just a little early for that, maybe next month.

Common yarrow (Achillea millefolium), Spreading fleabane (Erigeron divergens), Winged buckwheat (Eriogonum alatum), Redroot buckwheat (Eriogonum racemosum), Sulfur-flower buckwheat (Eriogonum umbellatum), Red dome blanketflower (Gaillardia pinnatifida), Scarlet gilia (Ipomopsis aggregata), Rocky Mountain iris (Iris missouriensis), Hoary tansyaster (Machaeranthera canescens), Wild bergamot (Monarda fistulosa), Sunset Crater penstemon (Penstemon clutei), Palmer’s penstemon (Penstemon palmeri), Mexcian hat (Ratibida columnifera), Cut-leaf coneflower (Rudbeckia laciniata), Fendler’s globemallow (Sphaeralcea fendleri), MacDougal verbena (Verbena macdougalii)

 This years Plant Sale at the Arboretum may be online, and is scheduled for July 18 from 9  to 2, check out the link.
Also here is the link for the Summer Gardening Tips the Arboretum puts out.

The Wildflower garden is progressing and will keep you up to date throughout the summer with this little experiment.

 One last picture,

Been out riding a lot this summer.  This was a ride that we did on the Arizona Trail from Goose Springs just past Mormon Lake to Happy Jack. Super ride, little over 20 miles passing through some great back country. This was a small tank we stopped at in the middle of the ride. I would say to enjoy the sights and smell the flowers, but the Rocky Mountain Iris (Iris missouriensis)  had just bloomed the weeks before and were done for the season. This was a great ride that I would highly recommend. Next adventure, from Happy Jack to ? well someplace south east, maybe to Clint's Well.

Until next month,
Please never hesitate to reach out with any questions you have or topics you want to discuss.
Heck, there are a lot, Real Estate, WildFlowers, Hiking, Mt Biking, and Golf.

Best wishes

Jeff

What will your housing needs be in three to five years? If you can figure that out, you can watch the market, target areas and neighborhoods you might like to live in, and reap the benefits of planning ahead.

Until recently, even the latest home security system could become obsolete overnight. But, newer whole-home integration systems are much more compatible with interchangeable parts and innovative add-ons.

When you put your property up for sale, you want to make sure that potential buyers get all the information they need on the features of your home and its surrounding area. If, for example, a buyer doesn’t realize there is a great school just a couple of blocks away, he might cross your property off his shortlist.

About the Author:

Flagstaff’s Snowbowl has been in operation for 80 years. Only 20 minutes from downtown Flagstaff, Snowbowl opened in 1938 and is one of the oldest continually run ski areas in the United States. It has 4 chairlifts providing access to about 10 novice, 24 intermediate, and 15 advanced runs with a vertical drop of about 2,300 feet. But winter isn’t the only time to visit!

Summer is the perfect time to check out Snowbowl. There’s no better place to beat the heat! Feel the wind on your face as you enjoy the 25-minute scenic chairlift ride up to 10,800 feet. Take in the dramatic scenery of northern Arizona from a bird’s eye view. You can see the cinder cone volcanic field, as far as the red rocks of Sedona, and even the Grand Canyon on a clear day! The chairlift ride offers great opportunities for photography, observing wildlife, or just enjoying the fresh air and expansive views from the San Francisco Peaks. Once at the top, a Forest Service specialist may greet you and answer any questions you may have about local biology, geology, and history. All tickets must be purchased online.

Is the fresh mountain air making you hungry? Ski Lift Lodge Restaurant is located conveniently at the base of Snowbowl Road and offers an authentic family-friendly atmosphere with indoor and outdoor patio seating. The menu features American cuisine with made-from-scratch entrees like steaks, burgers, pasta, and pizza. The on-site full-service bar has a great selection of draft beer on tap, including local craft beers. Check out the menu here. 

The breathtaking beauty of the San Francisco Peaks has been, and continues to be, molded by the forces of nature. The remnants of a dormant volcano, the peaks are home to some of the most spectacular hikes in the state, including a trail that leads you to the summit of Humphreys Peak, with an elevation of 12,633 feet. Or you can wander along the 1.7 mile loop to Veit Springs. (This trail passes Native American pictographs, early pioneer structures, and a small spring.) Make sure you carefully plan and prepare for your hiking or backpacking trip on the San Francisco Peaks before you take off for your adventure. Follow the golden rule of no-trace hiking and camping: “Take only pictures, leave only footprints.” Remember that The Peaks are subject to a wide range of climate conditions. Temperatures fluctuate greatly from night to day, and be prepared. (Please note: There is no hiking in the summer from the top of the scenic chairlift, other than a short trail to the upper observation point. Endangered species are located above timberline; therefore, hiking is restricted to designated trails only.)

Other activities which will be offered summer 2021 include summer tubing, a bungee trampoline, treasure panning, barrel rolling, disc golf, Ranger talks, and a mini ropes course. And of course, the miles of trails are there to enjoy any time of the year!

Once the snow flies, winter will bring some of the best skiing around, with multiple lifts and runs. There are also lessons offered for all ability levels in a private or group setting. Besides the restaurant, you’ll find a snack bar, day lodge, restrooms, rental equipment, an equipment repair shop, and first aid available. Hit the slopes with a Ski Bike, if you want to try something new!

Snowbowl is fun for the family, year-round!

Check it all out at www.snowbowl.ski