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Dramatic year-to-year jump in Flagstaff home prices for May

Flagstaff home sales in May continued to show signs of recovery, perhaps even strong recovery. The sales volume for Flagstaff single-family homes was up over 18% from one year ago and the median price was also up over 18% to $292,500. Sales have started to happen in the price categories above $400,000 – that’s news and a sign that the Flagstaff second home market is beginning to recover along with vacation homes across the nation.

Last year at this time, Flagstaff home prices were steady for the first time in years andI predicted (correctly) that they would remain so through the end of last year and begin to rise this past Spring.  The increase in Flagstaff home prices is quite clearly driven by inventory pressures; there are more buyers than sellers in the market. Inventory from May 2012 increased only slightly to May 2013. New Flagstaff homes are being built, but most are not available now.  While in some areas of the country, foreclosures are still a factor, they have become a small factor in Flagstaff.

The dramatic 18% Flagstaff’s median home price increase from last year is largely a result of more expensive homes beginning to sell again. It doesn’t mean that a home worth $225,000 last year is suddenly worth $265,500 this year. Nonetheless. Flagstaff home prices have bottomed (for this cycle) and we’ll continue to see movement upward in the next few years.

Flagstaff Home Sales by Price Range May 2013

To buy a Flagstaff home now, you need a full-time agent who is watching for new listings and will advise you about the nuances of the market. In some price ranges, buyers have the advantage; in others they do not. To sell a Flagstaff home, you need an agent prepared to deal with appraisal issues and touchy inspection issues. Visit our Flagstaff real estate website to team up with an experienced Flagstaff real estate agent. Or give us a call: 928.714.0001.

Note: The data reported here are based on home sales in the Flagstaff metro area (the City of Flagstaff and immediately surrounding county areas that have Flagstaff mailing addresses) as reported in the multiple-listing-service maintained by the Northern Arizona Association of Realtors.® The data may not reflect all sales (but it surely reflects most of them).