Realty Executives of Northern Arizona
The ancient Greek philosopher, Heraclitus, said, “Change is the only constant in life.” Well, that’s certainly true, especially in today's Real Estate market,
Things change. Often!
Kids get older. People take on new hobbies. Careers evolve.
As a result, a house that was perfect when the owners originally purchased it may no longer be ideal. That can be the reality even if they’ve only been living there for a short time.
While you may not be in that situation now, you might be in the next few months or years. When that happens, you can count on us to help.
In fact, there are a couple of ways we can work with you as your house needs evolve.
For example, if you need to renovate, we may be able to recommend a good contractor. And, of course, if you need to find a new, “more perfect” home, we can work with you to make that happen.
Just know that Renée and I are here to help ensure your home continues to be the ideal place for you.
So, when you have questions or need advice, reach out to us.
A little update on Jeff and Sue, before digging into the changes in the current Flagstaff Housing Market.
Since we semi-retired and turned most of the day-to-day Real Estate operations over to Renée September of last year, we have been working hard at retirement.
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After 14 months, not sure we have it all figured out yet, but can say we have given it a good try by traveling in and out of the states, visiting our kids and grandkids, taking up a new hobby: bikepacking, and getting in some serious backpacking. Sue going to the gym, traveling to Quilt Fairs and completing some Gorgeous Quilts. |
Let’s move on to some Real Estate news.
As we move into more detail, unless we specify, we will be talking about the general Flagstaff and surrounding areas and will be talking about residential homes including Single Family, Townhome, Condo, and Manufactured homes.
You have been reading all the national news and, in reality Flagstaff is not too far off.
One of the most telling facts is the Sales Price received ‘Compared To’ the List Price.
Going back to December 2019, homes were selling in the 98.8% of list price, so slightly under.
By February 2020 that figure climbed to 99.5% of List price and hovered in the 99% range till October of 2020 when it hit 101.1%, meaning that homes sold for 1.1% higher than list price.
To Clarify, 100% would mean the home sold at list price.
For the next 20 months we saw this happen monthly, with a peak in March of 2022 to 104.6%
Now that 4.6% over list price may not seem like a lot, but with a Median Sales Price that month of $620,000, that amount Averaged over $28,500 per home over list price, this is a significant amount. Yes, you may have heard of much Higher, and there were those you did not hear about, that were lower.
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Changes came fast in early to Mid-2022, partly because of rising mortgage rates. In June homes selling at 101.6% over listing to July homes selling under list at 99.6% and by October of 2022, was down to 98.1% of list price.. Again, a significant amount since the Median price home price in October 2022 was $673,000 so a reduction of 1.9% in price amounts to -$12,787. |
Home prices for the first 10 months of 2022 are still at an increase of 15.7%, August being the only month that showed a decrease in the median values of homes sold, and that was only -1.4%.
Do Not expect this +15.7% increase in Median price to continue. The first quarter of the year, we hovered at an increase of +30%, and has dropped significantly since to our currently year-to-date of 15.7%
So far this year we have sold -22.8% few homes than 2021 and -12.7% fewer homes have come to the market.
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Couple of other interesting facts,as referenced above, in October 2020, we hit 101.1% of list price, that month, the Median Home price was $497,000, selling at $248 a sq ft, with only 84 active homes on the market looking for a buyer. Fast forward 2 years to October 2022 the Median Home price is at $672,702, selling at $363 a sq ft, with 244 active homes on the market looking for a buyer. |
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Lastly, what has happened in the past 5 years:
If we go back to 2018, our median home prices have increase 69.4%, from $369,000 in 2018, to today thru the first 10 months of the year to $625,000. We are selling -14.1% fewer homes, and -15.9% fewer homes are coming to the market.
Cash sales have slightly increased from 24.2% in 2018 to this year to date of 28.9%
We hope this helps give you a broad overview of what has happened this year in the market.
As Always, if you have question, please know we are both here for any questions.
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Renée 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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