July Home Sales Report in Flagstaff
The pending home sales we reported in May and June started closing out and July proved to be a very strong month for single family home sales in the Flagstaff area. There were 132 single family homes sold this July up from the 88 sold in July of 2018. We still have 191 pending homes sales and our inventory levels for available homes under $500,000 remain historically low. Our median sales price for single family homes in the Flagstaff area came in at $455,000. In July 2018, the median sales price was $411,000.
There are a couple factors to consider when looking at the sales numbers.
- July of 2018 we began to experience a bit of a slow down in the sales volume. Looking back at our August 2018 blog we noted sales volume was off from previous years. This trend continued for several months in the middle to end of 2018 and beginning of 2019.
- The recent drop in interest rates is providing buyers a small relief in affordability. Sales prices may not be dropping but the lower rate is making monthly payments a little more palatable. Existing home owners should call their local lender to see if it makes sense to refinance. Take a look at our recent blog on refinancing for things to consider when looking at refinancing.
Nationwide July brought in strong sales numbers as well. Volume for single families across the nation was up 1% this July compared to July of 2018. The median price for single family home sales in the country was $284,000.
According to National Association of REALTORS® (NAR) chief economist Lawrence Yun “Falling mortgage rates are improving housing affordability and nudging buyers into the market. The shortage of lower-priced homes have markedly pushed up home prices.” Like Flagstaff, most markets across the US are experiencing extreme inventory shortages in affordable housing.
In the monthly existing home sales report Yun goes on to say, “Clearly, the inventory of moderately-priced homes is inadequate and more home building is needed. Some new apartments could be converted into condominiums thereby helping with the supply, especially in light of new federal rules permitting a wider use of Federal Housing Administration (FHA) mortgages to buy condo properties.” These are positive changes FHA has implemented to make it easier to obtain financing on condo units. Talking with local lenders here in Flagstaff it is still to early to see what, if any impact these changes will have in our market. As HUD and FHA release more details we will keep you posted. Read all about the FHA changes to condo financing in the HUD press release. These changes will become effective on October 15, 2019.
To buy or sell a Flagstaff home, you need more than the general advice in this blog. That is where we can help. Contact The Elite Team at RE/MAX Peak Properties – Give us a call at 928-714-0001 or send an email to [email protected] for experienced, professional advice on purchasing or selling a home in Flagstaff.