As we enter a new year and a new decade there are signs that the storm clouds hanging over the real estate market in Northern Arizona the past few years are beginning to break. At a recent business meeting which I attended there seemed to be a consensus that the real estate market nationally will remain flat and perhaps drop a bit this year. The market should then begin a slow recovery in 2011 and the recovery should continue into 2012. If the economist, planners, and fortune tellers are correct by the end of 2012 we should be back to a near normal market.
The major problem in our local area this year will be the continued rise in foreclosed and bank owned homes. As I wrote last month the number of foreclosures we experienced in 2009 was a fraction of what is expected for 2010. The result of these foreclosures is reduced values for everyone's property. Another problem is the certainty that mortgage rates will rise this year making homes a little more unaffordable.
While the real estate market has been terrible in many areas this past year, Flagstaff has shown some surprising resilience in both the number of homes sold and value of those properties. Each year my January article is written to show how last year's real estate market in Northern Arizona has preformed compared to previous years.
To see the trends in graph form and to view statistical reports for other property types in 2009 you can visit my web site at www.marymonday.com and go to Flagstaff Real Estate Trends under the Seller's Resources link.
The average price of $338,452 for 2009 indicates a drop of about $33,000 from the average 2008 price of $371,515. The median price for single family homes in 2009 was $290,000, down from $324,000 in 2008. The number of homes sold by year shows activity picked up with an increase of 66 homes sold in 2009 over 2008.
While our market has had its share of down periods, when compared to other areas in the state I think we are fortunate that our values have not dropped to the same extent that some of our neighbors have. As we move into 2010 the future of our real estate market appears to be steady as you go. The wildcard is the number of foreclosures we will endure, and the effect those may have on home values.
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