Let’s take a look at what happened in 2015. The source for the information provided below is the Northern Arizona Multiple Listing Service and is specific to zip codes 86001, 86004 and 86005. At the time of article submission, most recent statistical data is through Dec. 21, 2015.
Appreciation: 2015 saw a healthy overall appreciation of 2.7 percent. The median sales price for single-family residences and condominiums were up 4.6 percent and 5.2 percent, respectively. Townhomes saw a 2 percent decrease in median price, while the median sales price of manufactured homes rose 16.7 percent.
Sold Homes: The number of homes sold in Flagstaff is up 9.3 percent over 2014. Total dollar volume sold is up 12.7 percent overall. Condominiums saw the greatest increase in volume, with 28.8 percent more units sold over the previous year at a dollar volume up 42.9 percent.
Median Sales Price: Overall, Flagstaff’s median sales price was $312,900 in 2015. Median price for single-family homes was $340,000. Townhomes were at $250,000 while median price for condominiums was at $157,750. Median price on manufactured homes was $196,000.
Months Sold: The strongest overall appreciation rates in median sales price were seen in January (6.01 percent) and October (5.77 percent). The months that saw negative appreciation in median sales price were June, September and November.
Permits Pulled: New housing permits pulled in Flagstaff rose to 173 as of Nov. 30, 2015 (Source: City of Flagstaff Community Development Division). This is an 18.5 percent increase over the same time period in 2014.
What does it all mean?
The Flagstaff real estate market saw a balancing out over the past year. In 2014, the overall appreciation rate was 9.43 percent, while total number of homes sold stayed level with the year prior. In 2015, the number of residential sales rose significantly, giving buyers more inventory from which to choose. The higher inventory level created a more balanced overall market.
All that said, it’s important to remember that we’re looking at the overall market in Flagstaff with these numbers. Each area and price range has unique situations that can vary from the above information.
What lies ahead?
The Flagstaff real estate market is predicted to continue to see a healthy rise in both inventory and appreciation in 2016. Elliott Pollack, one of Arizona’s top economists, looked at Arizona’s real estate market in 2015 as a healthy market and predicts 2016 to be even better, according to his recent presentation given at the Greater Phoenix Chamber of Commerce.
Factors that can affect our local real estate market: In December, the Federal Reserve increased the short-term interest rates for the first time in nearly a decade. We may see an increase in mortgage rates in the near future as a result. However, even if we see a slight increase, we are still well below traditional averages. Many experts are predicting this to push more buyers into the market to take advantage of low rates before they rise.
In addition, the Federal Housing Administration (FHA) loan limits remain the same. In Coconino County, the loan limit is $362,250. FHA loans require lower down payments and have lower credit requirements, which open up home ownership options.
The 2016 real estate market in Flagstaff should continue to be a healthy and balanced market, making it an ideal market for both buyers and sellers. FBN
By Jacki Tait
Jacki Tait is a professional real estate agent with Russ Lyon Sotheby’s International Realty in Flagstaff and leads a team of agents in the Valley. Tait is a real estate investor and vacation home owner, specializing in helping her clients build their own real estate portfolios. She can be reached at 928-714-7244.