How is the market? This is one of the most frequent questions asked of a realtor by their friends, family, neighbors and clients. The easy answer, of course, is, “The market is great!” Interest rates are still low for home financing, new construction opportunities are available in Flagstaff, and with the right presentation, pricing and marketing, properties are selling quickly. On top of that, summer is the time when more homeowners place their homes on the market for sale, and there is normally a corresponding increase in the number of buyers looking for a home. So yes, the market is great.
But perhaps the more appropriate response to that question is, “It depends.” It depends on which segment of our market one is asking about. The market for lower priced properties in Flagstaff is very robust. Buyer demand is outpacing supply, so homes are selling quickly. Buyers in this market segment will need to be quick to tour new home listings and be prepared to face competing offers. Market data for single family homes in Flagstaff (zip codes 86001, 86004, 86005), on property priced below $250,000 suggests that we have less than a four-month supply of homes based on recent absorption rates.
The picture starts to change as we move higher in price. For example, more expensive properties priced between $250,000 and $500,000, the market is more balanced for buyers and sellers. Recent sales data indicates about a six-month supply of homes, which in the real estate business is considered a healthy, balanced market.
Even for higher priced homes, conditions are much better than a few years ago when housing markets were recovering from the recession. But sellers should be prepared to wait a longer to get their home sold. Data suggest more than an 11-month supply of homes priced between $500,000 and $750,000. This isn’t unusual for higher priced properties.
Our luxury market is another segment that could be explored, but we’ll save that for a future article.
With the improved economy, low inflation, low interest rates, and lower unemployment than in the past, realtors are very optimistic about our future. They would love for you to ask, “How is the market?” FBN
Bradley Ryan is the office manager at Russ Lyon Sotheby’s International Realty,
1750 S. Woodlands Village Blvd., Suite 200, Flagstaff, AZ 86001. He can be reached at
928-779-5966.
By Bradley Ryan