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.

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!