COVID-19 has impacted our lives in many ways. Most likely, it has impacted our lives in many more ways than any of us imagined! It has affected the housing and rental market tremendously as professionals have found themselves working from home and employers have wondered if they need the big office space after all. People have learned they can work from anywhere in the world and some families have discovered that maybe their house isn’t quite big enough when everyone is home.
While it may seem challenging, buying a home in Flagstaff can be simple and enjoyable when you have an experienced professional at your side. While market statistics and current real estate listings are easily found online, real estate agents are often notified about new homes before they hit the market. In a competitive market like Flagstaff, this can give prospective buyers a much-needed head start.
Whether you’ve just started your home buying journey or have been planning for years, 2021 will be a unique year to buy a home as the country continues to manage COVID-19’s impact.
The Impact of COVID-19 on Flagstaff Real Estate
Remote work increases the demand for Flagstaff cabins
Before COVID-19, many people thought their goal of living in their dream town was out of reach until retirement. The change in 2020 to remote work has allowed many people to start making that dream a reality. We have already seen an uptick in calls from buyers who are saying that their jobs are going remote and they are ready to move to Flagstaff. There is no doubt that working remotely will create even more competition in our, already, competitive real estate market.
High demand, low inventory
High demand and low inventory is not a new issue for Flagstaff. However, with the changes in the real estate market due to COVID-19, it is more true than ever before. Compared to 2019, the median sales price for single-family homes in October was 20% higher than in 2020. From $450,000 median sales price for October 2019 to $552,500 in October 2020. These figures are also higher than the national median price for a single-family home which came in at $317,700. High demand and low inventory continue to drive our Flagstaff home prices upward.
Interest rates are at historic lows
In Flagstaff, home prices are up and inventory is low. As long as this trend continues, prices will remain at historic highs. Don’t let this intimidate you, though. With interest rates at historic lows, affordability to buy a home is a bit easier.
Investing in Flagstaff real estate
Though the Flagstaff real estate market is competitive, it is also lucrative. High buyer demand has contributed to continually rising home values, making Flagstaff real estate an attractive investment. These conditions mean you’ll have to move fast now, but may benefit you in the future if you choose to sell or use your home as a rental property.
Flagstaff Housing Market Predictions 2021
Is now a good time to buy a house in Flagstaff?
If you’re considering buying a home in Flagstaff in 2021, you have some options to consider on the best time to buy. Although there are fewer homes for sale in the winter months, the price for those homes tends to be lower than in the more popular summer months.
Housing market predictions in 2021 show that from now until September 2021, Arizona home prices will increase by 8.2%. In the past 20 years, home prices have increased in Arizona by an average rate of 4.15%. COVID-19 certainty isn’t slowing down that rate for 2021 – it’s doubling! With new construction happening in Timber Sky and cabins for sale in Kachina Village, buying sooner is better than later.
Will house prices in Flagstaff drop in 2021?
Although real estate data might look different in other parts of the country, Arizona real estate is expected to be one of the hottest in the nation in 2021. If you’ve been waiting to buy a home on the chance that house prices drop in 2021, your best bet is to buy now. A house market crash is unlikely in Arizona as home prices are expected to continue to rise in 2021.
3 Tips to Buy a House in Flagstaff in 2021
Tip #1: Sign up for MLS Alerts
One of the easiest ways to explore the Flagstaff real estate market and research current home prices is to sign up for MLS alerts. Be the first to know about new listings in Flagstaff and northern Arizona!
Flagstaff’s home real estate market moves fast, so it’s important to stay up-to-date as new homes and land listings come on the market. Receive custom alerts so you don’t miss your dream home!
Tip #2: Explore Flagstaff Neighborhoods
Flagstaff has so many wonderful features in its many different neighborhoods. From incredible golf course homes in the neighborhood of Pine Canyon to cozy cabins hidden in the ponderosa pine forests of Kachina Village, there’s something for everyone. With such a wide variety of neighborhoods, it’s a good idea to check them out and consider what factors are important to you before you buy.
There are many things to consider. Commute times, access to parks and schools, nearby attractions, and styles of homes are just a few things that can be determining factors when deciding where you’d like to plant your roots.
We’ve put together our Local’s Guide to Flagstaff Neighborhoods so you can explore from the comfort of your couch!
Tip #3: Partner with a REALTOR® You Can Trust
With a qualified real estate agent in your corner, you gain the insight and experience necessary to navigate Flagstaff’s competitive market confidently. Searching for a home can be stressful, but your agent can alleviate this in countless ways. Whether they’re helping you narrow down a potential list of neighborhoods, schedule viewings, or secure a loan, a good real estate agent is an invaluable asset in the homebuying process.