Home Prices Unquestionably Trending Down in Flagstaff But Sales Volume Holds Steady
Overall, the Flagstaff market held steady in July, according to statistics of the Northern Arizona Association of Realtors.® The number of homes for sale in the Flagstaff market broke the 1000 mark as we crossed into July and was exactly 1000 on August 3. The pace of sales also held steady in July - 133 homes in the greater Flagstaff area were sold in July, almost exactly the same as in June, when 136 homes sold. This continuation in sales was achieved by an $8000 drop in the median price of homes sold, or 2.6% in the single month. (These numbers include all types of units - single family, townhomes, condos and manufactured homes.)
The median price drop in for single family residences was even more dramatic. In June the median was $399,000. In July, the median price was $365,000. And, the price per square foot was down from $180 to $165. Contrast that to expectations in recent years of prices over $200 per square foot.
So far, we in Flagstaff have not had the significant price drops that have occurred in Phoenix and other parts of the country; however, that trend seems to be beginning to hit. We'll have to watch the next few months to see where it goes. Given the land situation here, it seems unlikely to go too far.
On the other hand, there is still "shaking out" in the mortgage markets, especially for larger, or so-called "jumbo," loans. One of the factors in our price drops is that larger homes are selling for lower prices than in past years. This could be aggravated by the increasing difficulty in finding larger mortgages. More on this in the coming weeks.
The numbers in this analysis are for all residences with Flagstaff mailing addresses, whether or not they are in the city limits of Flagstaff. Statistics are based upon the Northern Arizona multiple-listing-service for all residences sold, including single family, condos, townhomes and manufactured/mobile homes. (MLS sales reports do not include all sales in the market, but are a good representation.)
Ann Heitland, Team Heitland at RE/MAX Peak Properties
Flagstaff Real Estate
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