Let’s take a look at the current conditions in the ever eclectic Flagstaff real estate market.
Where are sales prices right now?
Compared to the previous period, most recent real estate listings with price drops in the Flagstaff area were not prevalent. Real estate market data from July to September of 2019 indicates that only 17.34% of home sellers dropped their sales price to get to the closing table. While this rate is higher than 7.07% from March of this year, the lowest of 2019, it reflects a downward departure from its highest level of 19.95% at the end of August.
In late October, median home prices in the region dropped to $380K according to the Zillow Home Value Index. This price represents a decrease from the $416K median reported by the Arizona Daily Sun in the middle of the year. But it also reflects a 3.9% increase over the year and corresponds to forecasts previously issued by market analysts.
What’s the Flagstaff Real Estate Market Temp?
the Flagstaff real estate market is currently hot
Under the Zillow Market Temperature indicator, the Flagstaff real estate market is currently hot, meaning that it favors Sellers more than Buyers. As expected, the rental market has shown stability over the last three months, but this could change shortly if the market temperature increases. To get an idea of how the local market is performing, it helps to gain perspective from national data provided by the National Association of Realtors for September 2019, when existing home sales fell by more than 2% on a year-over-year basis while Flagstaff soared by 35% compared to September 2018. Get your home listed now!
How fast is real estate moving?
From July to September, home listings took a little longer to sell compared to the previous period, when getting to the closing table took 53 days on average. In early October, the average listing spent about 70 days on the market before closing. As for properties that are “underwater,” meaning that they have fallen into a negative equity situation, only 5.2% of the Flagstaff real estate market is in a negative equity state. Early-stage delinquency rates, those that take place within the first six months after closing, are at 1% on a national basis. Still, this figure is much lower in Flagstaff, where only 0.4% of mortgage borrowers are facing this situation.
Flagstaff Real Estate Big Picture
The one-year forecast by Zillow suggests that the Flagstaff market will expand by 3.3% over the next 12 months. With median listing prices around $439K, prospective buyers may want to sign purchase contracts now; judging by real estate market data from earlier this year, prices could rise through March 2020.
September was a highlight month for the Flagstaff market with 135 closings. a regional record underscored by rising home values.
September was a highlight month for the Flagstaff market with 135 closings. A regional record underscored by rising home values. One interesting aspect of market activity over the last three months is that luxury homes were particularly slow to sell compared to their more modest counterparts. With regard to the supply of available homes, a healthy inventory of fewer than three months was recorded in late October near the median listing price. As the market eases into the holiday season, the three-month supply may increase because of lower sales activity. Traditionally, Flagstaff home buyers tend to be more active during the summer months despite a few sellers becoming very motivated during the holidays.
Don’t wait to get your home listed now! And if you’re in the market to buy, know that prices are only projected to go up through spring. Call me at (928) 300-1080 to start the search or to get your home listed today! Click here to find out the value of your home or here to see how much that dream home mortgage payment might look like.
–Justin
The Full-Time Real Estate Agent
