Real Estate News: Quarter 1, 2020 Market Recap

Real Estate News: Quarter 1, 2020 Market Recap

Elite Team at RE/MAX Tidbits

Here is a bit of what the Elite Agents are doing to get through this COVID time and keep ourselves productive and sane.

Sara starts the day with a shot of espresso and going through emails, checking MLS, etc. Then she gets the kids set up on their Google classrooms. She has been really enjoying checking in with clients and talking about what they are going through in their own lives and how they are staying healthy, safe and busy.

Here are a few things Jessica and her family are doing. She continues to get out and enjoy what Flagstaff offers, the trails, so after her trail runs she comes home and does family yoga, which has been a hard change, but something she really enjoys. She is busy with masked and virtual showings and calls to her people.

During Tad’s stay at home orders, he has been working from home to keep his clients taken care of. When not working on business or school work, Tad’s family has enjoyed training in Kung Fu remotely, playing board games, and getting lots of projects done around the house!

Kelly’s biggest trick is to keep the same routine as before the quarantine. She continues to get up at 6 and go for a run with her husband and dog. Movement definitely clears the mind. She has enjoyed actually having phone conversations with past and present clients.

Eric has been enjoying having his youngest son, Parker, back home from UofA and has been busy checking with clients and friends. Eric and Lori are going to be using their camp trailer and find a secluded spot in the woods to escape and recharge.

Ian has been trying to keep a regular workout schedule along with eating well, which is tough when you want to eat out and support local business. On the weekends Ian and his fiancé try to get out on hikes. He continues to keep clients updated on changes to the rental and sales market.

 


 

STAYING SAFE | STAYING HOME

The COVID-19 pandemic has surely changed the lives of all of us to one degree or another. For many of us, it has resulted in abiding by current Stay-At-Home orders.

Before we let tempers flare and personalities clash, be sure to remember that we are all in this together, and are all figuring out the best ways we can deal with the situation individually. Here are some ideas that can help ease the stress of a difficult situation:

First, it’s very important to create a sense of normalcy in an otherwise very extraordinary time. The most effective way to do this is to establish, and keep to, a daily routine that simulates what your normal day would be like as much as possible. Shower, dress, eat a healthy breakfast, and begin your day. Just because you’re at home doesn’t mean you must change your workload. Take breaks, go for a short walk while maintaining social distancing. If you have children, involve them in the routine planning as well.

When you’re not working hard on career work or school work, be sure to take advantage of the down time. You can enjoy your favorite board game together, enlist the entire family to help cook your favorite meal, or sit down with a bowl of popcorn and watch a movie.

Being required to stay at home can also have the effect of removing distractions that have impeded in completing other goals you may have.

It’s also very important to remain as physically active as possible. Even though you can’t go to the gym, there are numerous ways to stay active in your own home. No matter what your fitness level is, there are abundant resources online for various activities that can accommodate everyone. You’ll be surprised at how much getting a good sweat out can also get the stress out!

One great idea is to journal every day. Whether a quick video blog, or hand-written daily journal, just try to do it every day. Encourage the other members of your house, even kids, to do the same. Remember, this is a once-in-a-generation event that we are all going through, so being able to look back on it one day in detail is a rare opportunity.

Remember, above all else, that your health and well-being, and that of the ones you care about, are the most important thing right now. Take necessary precautions like washing your hands, staying at home, and wearing a mask and gloves when appropriate.

Thank you to all of those who are working on the front lines to keep us all as safe as possible. Doctors, nurses, emergency responders, store employees, delivery drivers, and all other essential employees. As always, The Elite Team is here to help in any way we can!

 


1st Quarter Sales Report For 2020

Strong and confident is the best way to describe the first quarter sales for the Flagstaff real estate market. There were 220 single family homes sold in the Flagstaff area. This is a sharp increase from the slow start of 2019 where there were only 137 homes sold during the first quarter. As you may recall, 2019 started off very slow but built up steam and became one of the strongest recent years in terms of sales volume.

Our median price was also very strong during the first quarter coming in at $440,663. This was over 7% higher than the first quarter of 2019. We will keep a keen eye on the volume and price of homes during the 2nd quarter of this year to see how the market may react to the current COVID-19 pandemic. Very early numbers show volume has dipped modestly since the end of March with less than a 10% decrease. Inventory remains historically low in the Flagstaff area, especially for homes priced under $500,000. Capstone Builders received approval for their first phase in Timbersky, and Miramonte should be receiving approval soon. New home construction should give buyers more options as we move into the summer and fall of 2020.

The National Association of REALTORS® (NAR) has not released the 1st quarter reports yet but we anticipate a strong market similar to the Flagstaff market. The February Pending Home Sales Index Report from NAR in February shows pending home sales were up year-over-year over 9%. Chief economist with NAR, Lawrence Yun, believes the housing market is on solid ground and will fare well coming out of the current events. He shares the sentiment that a lack of inventory nationwide and low new construction numbers for the last 10 years will be major contributors to a strong market.

Crazy times no doubt, but rest assured we are here with you all during the roaring ‘20’s.

The data reported here are based on home sales in the Flagstaff metro area (the city of Flagstaff and immediately surrounding county areas) as reported in the multiple-listing- service maintained by the Northern Arizona Association of REALTORS®. The data may not reflect all sales (but it surely reflects most of them).

 


Flagstaff Real Estate During COVID-19

During these uncharted times, it is important to keep our clients informed on what is happening with the Flagstaff and National real estate markets. With the national economy coming to a near halt we can’t help wonder what will happen with the real estate market. What we want to do is give you information that we know now. Things are changing daily but we are going to write about what we know on April 9, 2020. Check back with our blog and Facebook page as we will continue to give updated information.

At the time of writing this, we are still seeing movement in our local market. COVID-19 was considered a pandemic on March 11, 2020. The business closures and social distancing started on March 18 in Arizona. From March 18, 2020 to April 9, 2020 we saw 115 new listings enter the market in the Flagstaff area. Of that 115 listings, 38 of those homes have since gone under contract. We also have seen homes that were listed before this time period go pending. During the same time period in 2019, we saw 106 listings hit the market. So as of right now, we are seeing a similar market compared to 2019. You will see on the next page that Flagstaff had a very strong first quarter in real estate sales.

What everyone is wondering, however, is what will the next few months look like. Unfortunately, we don’t have an answer to this. This is such an unprecedented event and the unknown is the scariest thing for everyone. Every economist has a different opinion. Some believe that we have “hit a pause button” and everything will go back to the way it was when the social distancing can stop. Some think we have “hit a pause button” and the real estate market will be even busier than it has been the last couple of years. Some believe we are heading for a recession due to all of the sudden unemployment. National Association of REALTORS Chief Economist Lawrence Yun believes that “home sales will decline this spring season because of unique economic and social consequences resulting from the coronavirus outbreak, but much of the activity looks to reappear later in the year. Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with immediate concerns over foreclosures.” Most real estate economists believe that we won’t see the fall out that we did due to the 2008 housing crisis. Since this is a health crisis they are expecting a quicker recovery. All we can do as real estate agents is track the listings hitting the market and those going under contract, and keep our clients updated on what is going on here in our local market. We are committed to doing this.

The lending world has seen some craziness over the past few weeks. There are a lot of things involved with mortgage rates and programs. That would be an article in itself and we are happy to provide that so please reach out if you would like that information. Currently, rates are still at historic lows, however, a buyer may have to pay points to obtain these rates. Different mortgage companies are going to have different programs. If you have spoken to a lender that claims they have lost the program you were hoping to use, don’t give up. We can help you reach out to other lenders that may still be offering the specific program. Buyers may be asked to provide more information during their pre-qualification process because loan institutions are not wanting to take many risks currently. We have a team of amazing leaders that are keeping us informed and we will continue to keep you informed. PLEASE use a local lender who has a strong background and track record in our area. Their expertise in our local market is so important during these unprecedented times.

In closing, we are doing all we can to stay informed on our local and national markets. We advise you to follow our Facebook Page and blog for more up to date information. We hope to alleviate some of the anxiety that comes with the unknown by providing as much information as possible. Please don’t hesitate to reach out with specific questions or concerns.

 


Featured Listings

780 Trout Creek RD, Munds Park, AZ 86017 | $264,900 | MLS#180609

 

Are you looking for that turn-key, pristine A-frame cabin to get out of the Arizona heat or to just become one with nature? This is it!! This well cared for a cabin on a flat lot offers an updated kitchen with stainless steel appliances, log siding and a place to park your RV! Enjoy the beautiful Northern Arizona weather on the front or back decks. This home also offers a circular driveway with plenty of parking and most of the furnishing conveys with the property. Don’t miss out on seeing this great property.

 

4825 W Braided Rein, Flagstaff, AZ 86005 | $695,000 | MLS# 180860

WOW, come see this amazing, newer, hardly lived in, SINGLE level home with AC and no upgrade spared. This home was built on a premium lot with views of 2 fairways, & across the street from state land access. When the sellers built this home, they pushed it back on the lot in order to maximize privacy. Sit on your extended back Trex deck and enjoy the privacy and views next to a fire pit which is connected to the house gas so no tank needed. The living room offers tongue & groove ceilings and sliding doors to the deck. Your guests or family will enjoy spacious rooms & a bathroom with many upgrades. The shower door and mirror are just a few. The master bathroom offers split dual sinks, walk-in shower and large closet, and even fun built-in wood towel racks. This is a must-see! The sellers are also willing to sell this home furnished with an acceptable offer. Social membership available outside of escrow.

 


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If you or anyone you know needs assistance in buying or selling a property or with property management the Elite Team is here to help. Email or call us with any questions [email protected] or at (928) 774-0001.