Realty Executives of Northern Arizona
The following will be a review of the Flagstaff Real Estate Market for 2019.
As you go through the data, this will be for the General Flagstaff area, including Single Family, Condo, Townhome and Manufactured homes, with a chart below that will give you the additional details.
But first, what about 2020?
From all indications housing should fare well as we move forward.
Unless something happens on the bigger picture world or nationwide, our mortgage rates should be relatively stable for the year, benefiting the buyers a lot.
Housing Supply will remain tight which will benefit the sellers in the lower price categories, which means once buyers have a very good idea of what they are looking for, reaction times to make those offers are limited.
Honestly, for now at least, gone are the days you see something you like today, but wait till the weekend to look at. Unless you see on a Friday, by the time the weekend comes, that home may already be under contract.
If you are considering selling, this will be a good year
If you are considering buying, this will be a good year, but some prior prep work will help you be ready when you find the right home
If you are considering Selling and Buying, there are important steps to take.
In all cases, it will be important to sit down with me, we can work out the best course of action that will benefit you and your family.
Now for a few facts:
Overall homes prices in in Flagstaff rose 5.4% for the year to a Median Price of $390,000 with 1498 homes selling, or an increase of 6.3%.
We did have slightly fewer homes come on the market with a .5% decrease. The Average Days on Market ended up at 104 days, and overall our Month’s Supply of Homes came in at 3.6 months.
To help explain this figure, the experts in Real Estate, say that a 6-month supply is healthy, any higher and we are in a Buyer’s market, any lower we are in a Seller’s market.
Another interesting fact, Cash sales accounted for 21.8% of the homes sold last year, that is down from the year before which was 22.80%. To give you more reference to this figure, going back to 2010, or 10 years ago, that figure was 19.86%.
A little more detail:
Single Family home median prices climbed 7.7%, to $435,000 with 3.6% more homes sold, 107 days on the market, and 20.20% of this home category sold as a cash sale.
Condominium median price climbed .3% to $215,750 with -12.8% fewer homes selling, 79 days on the market, and 32.30% of this home category selling as a cash sale.
Townhome median price decreased -3.9% to $340,000 with -3.8% fewer homes selling, 118 days on the market, and 26.80% of this home category selling as a cash sale.
Manufactured home median price climbed 4.0% to $251,500 with -1.8% fewer homes selling,71 days on the market, and 12.50% of this home category selling as a cash sale.
Some Explanations,
Condominiums- We had fewer homes come to the market, the median price point of $215,750 is the lowest price point for all home categories so highly sought-after homes. Bottom line, with only 163 listing coming to the market, there just was not enough to satisfy the pent-up demand.
Townhomes- this was the only category that the median price point decrease. This was caused by fewer new townhome construction at a higher price point coming to the market. Again, with a much lower price point than single family homes, Townhomes are not keeping up with the buyer demand.
Above we talked a little about ‘Month’s Supply of Homes’.
Overall, we are well below the 6 months supply we would like to have and at 3.6 month’s supply.
A more telling figure is when we look at by price point;
Homes up to $299,999, we have only 2.1 month’s supply
Homes $300,000 to $499,999, we have a 2.7 month’s supply
Homes $500,000 to $699,999, we have a 4.8 month’s supply
Here is where the month’s supply climbs and benefits the buyers
Homes $700,000 to $1,000,000 we have 8.0 month’s supply
Homes over $1,000,000, we have a 16.2 month’s supply.
About the Author:
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Where the Experts are - Serving Flagstaff and Northern Arizona since 1977
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