Fewer single-family homes were sold in Flagstaff in January than in any month since January 2010. True enough, there have been several months with just one or two units more sold, but the drop from December was huge – 34%. And the median price dropped month-to-month by $9500. Still, the median price of Flagstaff homes sold in January 2014 was up 20% from one year ago. At $288,500 it was still nearly 4% lower than the median price of Flagstaff home sales in January 2010. So, it’s a slow, bumpy road we have been on, as this chart shows:
In 2010, at the beginning of those lines, the low sales volume was driven by low demand. Now volume of sales is restricted by low inventory and buyer demand is back, though with the slow economic recovery there is some underlying weakness. I predict higher, but not dramatically higher, prices in 2014 and more sales than we have seen in the last few years as Flagstaff builders get into the swing and homeowners decide that the market has improved enough that it’s time to put their homes on the market and move along with their lives.
By the way, I looked at Flagstaff townhome sales, hoping to see that the low number of sales in Flagstaff single-family homes would be covered by an increase in townhome sales. No, only nine sales of Flagstaff townhomes in January, down from 23 in December. The median price of Flagstaff townhomes sold in January was $297,055 – higher than that of single-family homes!
Here are January sales and current inventory broken down by price range. Here is where you can see low inventory in the lower price ranges driving up that median price: