Wall Street Journal Columnist Nick Timiraos explains national phenomena that is also hitting Flagstaff and RPR Logic Points Out It’s All in the Comparison Point
Interesting column by Nick Timiraos this week that I think is spot-on explaining the frustration many buyers are feeling as they try to break into the Flagstaff housing market. Here’s my latest Flagstaff Home Sales Update to consider along side this national housing inventory analysis.
On Thursday, Radar Logic Incorporated released the RPX Monthly Housing Market Report for November 2012. Here are the highlights:
1) The big increases in home prices we’ve been hearing about in the news are only big because they are compared to very weak home prices in the second half of 2011. So, when you read about year-on-year gain of 10%, that’s compared to a very weak 2011.
2) Increases in median prices are being driven by a change in the mix of sales: Larger and slightly higher-priced homes are selling again, so the median price is up.
3) Another mix of sales has changed: There are fewer foreclosed homes for sale. If you believe that foreclosed homes sell for less than “traditional sales,” as the National Association of Realtors® calls them, the median price is going to be higher as fewer foreclosures sell.
Controlling for mix of sales, Radar Logic says that individual property values have gone up at half the rate of the published median sales price reports. And, that increase is off a low-bottom. So, individual sellers need to be realistic about what’s happening in the market when they are ready to sell.
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To buy or sell any Flagstaff home, please contact me: Ann Heitland at RE/MAX Peak Properties.