The Flagstaff real estate market continues to show signs of slow recovery
The median price of a single family home sold in Flagstaff in April 2013 was $260,000. That’s up 2.6% from April 2012. The volume of home sales was actually lower than a year ago by 11%. Most experts attribute the low volume to lack of inventory; available listings of Flagstaff single family homes are down 7.7% from this time last year. That lack of inventory necessarily creates upward price pressure.
Last month was the first April since 2006 when the median sold price for Flagstaff single family homes was higher than in April of the prior year. In April 2013, the median price for a Flagstaff single family home, at $260,000, was up from $248,000 in April 2012 and down from $395,000 in April 2006. Numbers like this mean little without a little digging into what’s behind them.
It certainly doesn’t mean that the same home which sold for $395,000 in 2006 would now sell for $260,000 – although that may be the case. What it does mean is that lower-priced Flagstaff homes are selling and higher-priced Flagstaff homes are still selling less well, if at all, as you can see in the accompanying chart. Nonetheless, there is improvement in the higher ranges. This year, Flagstaff homes priced below $400,000 – if priced right – are selling. In contrast, last year there was virtually no demand above $300,000. It also means the price per square foot of homes below $300,000 has sky-rocketed compared with recent years (still far away from those bubble years though – and likely to stay below them).
So, is this a modest or a disappointing recovery? I guess that depends on whether you are a “glass-half-full” or “glass half empty kind of person.” I’m the more optimistic variety and believe we are engaged in a “modest” recovery. For those thinking of investing in Flagstaff real estate, I advise doing so with careful, expert advice. The location, price, quality of the Flagstaff house you buy is important. So is the competition that you’re likely to have when you try to sell or rent the Flagstaff home that you buy. No one can predict the future, but there is no reason to jump in blindly.
Be informed: When you want to buy or sell Flagstaff real estate, contact the Elite Team at RE/MAX Peak Properties. 928-714-0001.