Friday, January 27, 2017 / by Jeff Ross
2016 Final Flagstaff Home Prices Show Strong Increase.
by Jeff Ross
Realty Executives of Flagstaff
Final Home Sales numbers for the general Flagstaff area are in and looking very strong.
These will be broken out into two categories, All Home sales, Single Family, Townhome, Condo and Manufactured, and then for just Single family.
For All Home Sales
The Average price climbed to $342,223 or +5.42% over the prior year,
Median price climbed to $305,000 or +7.02%
We sold 1701 homes, a 8.1% increase over the prior year.
Average Days on Market, 107 days, with the prior year at 111 or a -3.60% decrease.
Average list price was 2.7% higher than sold price
For Single Family Homes
The Average price climbed to $421,714 or +6.20% over the prior year,
Median price climbed to $364,731 or +7.8%
We sold 952 single family homes or a -1.04% decrease in those sold compared to the prior year.
Average Days on Market, 107 days, which was even with the prior year.
Our Home Inventory is pretty stable for this time of year
As we ended the year, we have 500 of all home types on the market, compared to 508 last year, so close to even.
Though when looking at these figures, we have far fewer homes on the market under $300,000, a 30% drop. For the year, we had 13% few homes on the market under $300,000. But then looking at homes from $300,000 to $500,000, we have 19% more. For the full year, we had 12.7% more on the market.
This may be a combination of some of the homes under $300,000 moving up in price and just not as many coming to the market in this price range at all.
Now when I say it is stable, I would say there is still a lot of pent up demand for homes under $500,000 or so if priced at market.
Strong Seller Market
We are still in a very strong Seller’s market under approximately $500,000. This has moved up some, with the limited number of homes on the market under this Price point and pent up demand.
The Higher End Homes above $1,000,000, Sales are Stable.
These homes sales have been pretty stable, with 19 homes selling this year, compared to 20 last year.
This is 1.1% of the overall Home sales, but account for 10% of the available homes on the market.
What will happen to Mortgage Rates for 2017?
I am going to leave this subject alone this early in the year. Not even the experts can agree.
I did go to a PrimeLending Seminar, they felt they may climb a little, but then settle back down, but to what?
As a Summary;
We had a good year for homes sales in Flagstaff, with an average price increase very close to what Core Logistics estimates for Arizona in 2016.
Housing inventory has been light all year long, which caused a Seller Market for a majority of the market. I do not expect this to change for 2017.
For Sellers, a home priced at or slightly above market value, this may be another very good year.
For Buyers, they must be on top of what comes to the market. Already have their lending in place before looking at any homes, so they can react when they see a home that fits their family well.