Home Sales and Prices Climbing in Flagstaff – Shortage in Some Segments

The Flagstaff real estate market appears to be heating up and there’s even a shortage of homes in some segments!

The number of homes sold in March jumped up 69% over February of this year and 18% over March 2011. The inventory of homes available for sale remains lower than usual and almost a third of the homes on the market are under contract, which is higher than it’s been in quite some time.

The above figures are for all of Flagstaff and the immediately surrounding communities. If you look at just Flagstaff city limits, the market is showing even more signs of improvement, to the point where it leans slightly more towards a seller’s market.

One of the most in-demand segments of the market right now is townhomes. As of this writing, there are only 74 townhomes on the market, with 30 of those under contract! Given the current pace of townhome sales, this equates to 4-month supply of available townhomes – solidly in the territory of a seller’s market. Certain price segments are also in the 4-month supply or better!

The trailing average price has risen for 10 of the last 12 months, for a total increase of 6.3% in the past year. It’s possible that prices had over-corrected downward and are now adjusting back to where they should be based on current supply and demand.

If you think you can’t sell if you’re not in a short sale or foreclosure, think again – over half of all homes sold were not “distressed” sellers and, again, the inventory (your potential competition) remains lower than it’s been. Please contact me for further info on what the current market conditions mean for you and the sale of your home.

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