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The median price of Flagstaff single-family homes sold in January 2015 took a pop upward, rising to $359,000 from $336,000 in December. January’s median sale price was also up 24.4% from January 2014. This sharp increase is largely due to the fact that larger, more expensive Flagstaff homes have made a comeback; the price per square foot rose only 10.7% year-to-year (still pretty nice for sellers).

Flagstaff home sales January 2015

It seems the price increase is largely driven by low inventory. The number of home sales still remains dismally low. The chart below shows that home sales (the lower line) have hardly increased since the beginning of the housing recession while the number of homes listed for sale has fallen since the peak of foreclosure activity. That’s the phenomena that is pushing up prices right now. With new home builders poised to add inventory in 2015, I don’t expect prices to continue this sharp upward trend.

Flagstaff Home Sales Time Trend

Top line in the chart to the right shows Flagstaff home listings over time while the bottom line shows sales.

To buy or sell any Flagstaff home, contact my fine colleagues with the Flagstaff Elite Team at RE/MAX Peak Properties.

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).