Real Estate News: Quarter 3, 2020 Market Recap

Real Estate News: Quarter 3, 2020 Market Recap

Elite Team at RE/MAX Tidbits

Here at The Elite Team, we pride ourselves in not only giving our best to our clients, but giving our best to our community and profession as well! That being said, we are excited to share that three members of The Elite Team were recently nominated and elected to serve on the Northern Arizona Association of Realtors® Board of Directors!

Tad Moore – 2021 President-Elect

Jessica Garard – 2021 Vice President

Sara Holloway – 2021 MLS Committee Chair-Elect

We hope to bring our passion for the real estate industry to the NAAR Board of Directors, and make a difference in the lives of local Realtors® and our clients alike!

 


FLAGSTAFF RENTAL MARKET

With so many current unknowns, including the state of the pandemic, fires and floods across the country, and the Presidential election, it can be easier to focus on what is known. Right now what we know is that the real estate market is hot in Flagstaff and most of the country. In Flagstaff it is important to consider both the sales market and the rental market. This article will focus on the Flagstaff rental market.

Because Flagstaff is the home of Northern Arizona University, and it can be difficult to purchase a home in Flagstaff, there tends to be a high amount of people looking for rentals. Student housing is a big component of the market, but there is always a large number of people looking for long-term rentals. These long-term rentals are as hot a commodity as a new listing is in our market and do not last long, depending on the location. Areas like Downtown, Coconino Estates, NoHo (North of the hospital), and Cheshire are the most desired living areas of town for professionals that work downtown in the service industry, at Flagstaff Medical Center or the increasing number of people working remotely on their computers as a result of the COVID-19 pandemic. The close proximity to trails for biking, hiking, and quick access to the forests surrounding town keep these areas always in high demand which leads to an increase in rental rates. The rental price of housing varies depending on the owner and property managers across town. After consulting a few different managers and owners in Flagstaff, it is determined that the average cost can run from $600-$900 per room and usually this does not include utilities. People can get a bit of sticker shock when looking at rental prices here.

Student housing is a big topic of conversation in Flagstaff, and Northern Arizona University has grown exponentially over the past decade. It is impossible to overlook the bigger apartment complexes that have been, and are in the process of, being built in Flagstaff. For the most part, these have been student housing developments. The one currently being constructed on Milton, near central campus is the Uncommon Flagstaff. This student complex will have 179 units ranging from studio apartments to 5 bedroom apartments. The rents will range from $859-$1489 per student. The competing student housing projects off-campus are similar in pricing.

It is evident that the rental prices can be hard for many to afford, just like the sales prices. Because of this the City of Flagstaff has been working on some programs for affordable housing solutions to aid those struggling to meet the high pricing that Flagstaff presents. Currently it is in the process of building a large complex on Fort Valley Road called the Starpoint. If you have been down Fort Valley it is impossible to miss all of the excavating happening. Brinshore Development, working alongside Housing Solutions of Northern Arizona, has broken ground on the $25 million Starpoint project that is part of the Low Income Housing Tax Credit program administered by the Arizona Department of Housing. This development will offer 72 units ranging from one, two, and three-bedroom units. Ninety percent of the units will be restricted to affordable housing while 10% will be unrestricted and be rented at market value. Rent for these affordable units will range in price from $492 to $1620 a month depending on the room count. There will be 18 one-bedroom units, 35 two-bedroom units and 24 three-bedroom units. Renters hoping to rent here will have to meet certain income requirements, but this should be a great opportunity for those that qualify.

The rental market can be a tough market to navigate. Student housing and long-term rentals do affect our local economy and real estate values. It is important to keep up with all aspects of Flagstaff real estate. Whether you are a renter, or an owner who needs a property manager, the Elite Team is here to help.

 


3rd Quarter Sales Report For 2020

SALES VOLUME

We knew the third quarter of 2020 was going to be stellar for sales, we just did not know how much. There were 484 single family homes sold in the Flagstaff area from July 1 through September 30th. To give a little perspective that is 141 more homes than were sold in 2019 and 217 more than 2018 for the same quarter. While the third quarter is traditionally our strongest quarter of the year, 2020 will most likely go on record as one of, if not the, hottest quarters of all time. Townhomes were also impressive with 109 units sold this quarter. Manufactured homes were a bit sluggish this quarter with only 24 sold. Reasonable explanation for this would be the lack of manufactured homes on the market.

MEDIAN PRICE

Sales volume was accompanied by a continued increase in price. The median price for single family
homes this quarter was $519,770. That’s a $72,000 increase from one year ago! Buyer demand and
low inventory continue to push the cost of housing to new levels. New home construction is not able to
keep up with demand. Townhomes had a bit more modest increase over the last year with a median
price of $369,500 compared to $339,900 for the same quarter in 2019. The median for condos was
relatively level for the year with a median price of $220,000 for Q3 compared to $219,500 last year.
The median for manufactured homes was $293,750. As the last quarter of the year begins the broken
record continues… Prices are up and inventory is low. As long as this continues prices will remain at
historic highs. Interest rates are at historic lows making affordability a bit easier.

It is important to have a professional with you as you navigate this market that is unlike any other. Keeping up to date with the current statistics and the local and national economies is important as well. The monthly Flagstaff Real Estate Sales Statistics are a great way to do this. Follow the Elite Team Blog to stay up to speed with what is happening in the Flagstaff market.

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).

 


FEATURED LISTINGS

TBD N San Francisco Lot A
$430,000
MLS# 178788This 2 acre property is a rare find with a location just north of the hospital above downtownFlagstaff. Drive north on San Francisco street to the end of the road and enjoy the view and tranquility of the mountains at the edge of the city! This 2 acre home site can be nestled in the Ponderosa pine trees with panoramic mountain and meadow views.

 

 

 

7200 Leupp Road, Flagstaff AZ 86004
$495,000

MLS #179167
This 5.4 acre property is in the heart of the Leupp industrial park with quick and easy access to the property from I-40, Townsend Winona Road and Leupp Road. The seller would also consider owner financing with a reasonable down payment.

PICTURE YOUR HOME HERE ^^

Inventory is very low and houses are selling at record-breaking speed. Give us a call and we can talk to you about what listing your home could look like during one of the best times to sell.


 

ELITE TEAM INTERVIEWS

Get to Know Our Team
OUR TEAM RESPONDED TO THE FOLLOWING QUESTIONS:

1. What show did you binge-watch during COVID?
2. What has been your go-to take out restaurant?
3. Any new Flagstaff discoveries or new hobbies over the summer?
4. How did you get active during the pandemic?
5. What are you looking forward to doing this winter?

 

IAN

1. Red Oaks on Amazon Prime
2. El Tapatio
3. Nothing new. Just got better at hiking, biking and golfing
4. Getting married and touring the Southern United States for our 5. Honeymoon
6. The new Arizona Gondola at Snowbowl

SARA

1. Schitt’s Creek
2. PaTo Thai & Tacos Los Altos
3. Friday morning hikes with my
4. Kids and dogs
5. In home gym & hiking
6. Skiing & Snowboarding at Snowbowl!

TAD

1. How the Universe Works and Rick and Morty
2. Brandy’s, Banderas and the east-side Tacos Los Altos
3. Lots of mountain biking and some camping (well, glamping!)
4. Home workouts and tons of biking all over town
5. Cooking, baking and projects

ERIC

1. Naked and Afraid
2. Burritos Fiesta
3. Landscaping our backyard ourselves. Never again!
4. Acquired a treadmill and small home gym. Starting soon
5. In home gym & hiking
6. Quail hunting in the Verde Valley area

JESS

1. Ted Lasso on Apple TV
2. Pato Thai
3. Red Mountain! Hiking in a Volcano is fun!
4. Sprained my ankle in June so a lot of walking
5. Trying to keep up with Ari on the mountain!

DAVE

1. Schitt’s Creek
2. Shift
3. More exercise
4. Hiking, walking and biking
5. Skiing, now that I have a brand new hip!

KELLY

1. Schitt’s Creek
2. Indian food, Delhi Palace
3. Pickle Ball
4. Hiking and trail running but I also got a Peloton
5. Giving giant hugs if I can

 


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) 714-0001.