Now that we’re essentially three months into the COVID-19 pandemic, there’s no question that there’s been an impact on the Flagstaff real estate market.
The biggest changes in the market are the number of new listings, the number of homes under contract, and the number of closed sales. Home values appear to have softened slightly, but it’s too soon to know the true extent.
New listings are down 18% in the past three months compared to the same time period last year, likely due to coronavirus concerns as well as many people taking a wait-and-see approach to the market. This squeeze has made it a challenge for many homebuyers to find the right place. Fortunately, new listings have started to increase in the past few weeks.
The number of pending sales is down a significant 36% from the same time last year. This change, especially, has the potential to impact the market in the months to come. However, it’s possible that pending sales are down because the low number of available homes is making it difficult for buyers to find a home to purchase. If that’s the case, then we could see an increase in pending sales as more homes are listed.
The number of homes sold in Flagstaff was down 11% in April and 22% in May, but now is back up 22% month-to-date in June. Closings are a lagging indicator because the offers are typically made 30-45 days prior, so we were likely seeing the effects of the stay-at-home order in May and are seeing somewhat of a rebound now.
The overall good news is that people are still buying and selling real estate. Showings have recovered to approximately the same level as last year, sales are increasing, and many homes are still selling quickly. Plus, interest rates are at exceptionally low levels, making this a good market for buying or selling.
If you are interested in buying or selling a home in Flagstaff, please know that it is very possible. We can take precautions for the sake of everyone’s health and help guide you through these unique circumstances. Please feel free to contact me – I’d be happy to chat!