Market Up 4 of the Last 5 Months in Flagstaff

Is the market going up or going down? Or are we just bouncing along the rocky bottom? The local paper reported a decline in housing prices for 2011, which is true, but let’s take a closer look. In short, it was at first worse and then better.

The total decline in Flagstaff for 2011 was about 8%. However, this includes a sharper drop in the first half of the year and then somewhat of a rebound in the second half. From January through July, the median price fell a total of 12%. But then from July’s low through November, the median price rose a little each month for a total increase of 7%. It’s difficult to know which way the trend is going due to another slight drop in December; however, four straight months of price increases is significant. Hopefully, the next few months will give us a better idea of the direction of the market.

Take note that these monthly stats are based on the median prices for the trailing six months to give us a more stable and accurate figure. The average price on a month by month basis swings too wildly because a few really high or really low sales can throw off the average in any given month.

Source for Statistics: Northern Arizona MLS – Flagstaff area residential home sales.