Realty Executives of Northern Arizona
Imagine you’re chatting with your neighbors, and they ask, “Hey, do you happen to know a good dentist?”
How would you respond?
Well, you wouldn’t recommend just anyone, would you? Instead, you’d probably only recommend a dentist worthy of that recommendation… someone who is good at what they do and consistently provides great service.
In other words, someone who is referral-worthy.
That word – referral-worthy – is very important in our business. It describes the kind of real estate agents Jeff and I strive to be.
It’s why we work so hard for our clients, helping them sell their properties successfully, while working with them to find their dream homes.
It’s also why we continue to stay in touch with clients, and make sure we are always “there” for them when they have questions or need advice.
We hope you feel that qualifies us as referral-worthy! If so, please pass our names along to anyone who may be looking for an excellent real estate agent. We’d really appreciate it!
2022 was a changing year in Real Estate for Flagstaff.
Home prices at the beginning of the year raced out to a 28% increase the first two quarters of 2022 over 2021, but slowed to a -2.3% decrease for the 4th quarter of the year. Year over Year, we still showed a 14% increased, but only because of the strong 1st half of the year.
The attached chart will give you a lot of insight into how the year changed.
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Throughout 2022, the market did an ‘about-face’ in several categories.
At the end of the 2nd quarter, homes were selling at 4% higher than list price, but the end of the 4th quarter, that had changed to 2.38% less than list price. This also affected the price per sq ft, which dropped to $341.83 sq ft in 4th quarter 2022 down from $388.22 sq ft in 2022.
Days on Market started in the 1st quarter slightly less than the year before, but by the end of the 4th quarter grew to almost 2 weeks longer to sell. Though with this said, if we look back 5 years to 2018, the median Days on Market was 68 days, so just two days longer than 4th quarter of 2022 and still 5 days shorter than 2018 for the first 7 weeks of this year, which is at 63 days.
What is in store for 2023, well that Crystal Ball is still a little fuzzy,
We can say a few things,
Interest rates
We have reached out to Chris Hallows at Wallick & Volk Lending to help us in this ever-changing world of Home Mortgages. his Crystal Ball says:
"Mark May 10 in the calendars!
Based on year over a year inflation calculations, experts believe that the April inflation readings that will be shared in the May 10 report will show very positive and sustaining signs that inflation is lowering and this should move rates meaningly lower.
Experts anticipate that we will be in the mid-5’s by the summertime and possibly even Into mid-4's by the end of the year."
Again, an ever-moving target, so time will tell.
The number of homes on the market today is higher than we have seen over the past few years and sitting at 137 as we write this. This is up from somewhere in the 50’s during this same time the last couple of years.
Since the first of the year, Sold Prices are at 1% less than List prices, with Year-to-Date Median sold price sitting at $577,000, or down -6.9%
We do not expect this to change much the first half of 2023, since as the chart above shows Sales prices in 2022 up 28% over those first two quarters.
Once we get to mid-summer, depending on a lot of factors out of our control, we may start to see home prices trending slightly higher, but..... we would not expect to see the 28% increases we saw in the first part of 2022.
Am sure this brings up a lot of questions, so please never hesitate to reach out to either of us.
Best Wishes and be Careful during our impending Snow some coming.
Renée and Jeff
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Renee Gaun * Jeff Ross 928-606-6232 Renee
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15 E. Cherry Ave |
Where the Experts are - Serving Flagstaff and Northern Arizona since 1977
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