Real Estate News: Quarter 2, 2020 Market Recap


Elite Team Tidbits

We hope that everyone is enjoying their summers even though so much has changed. The continued surge of COVID 19 is still on everyone’s minds. One of the unknowns is what the pandemic will do to our economy.

In our local real estate market, we have seen inventory go down, and therefore, pricing has gone up (you will see this reflected in our stats on the next page). Many buyers are intimidated by the higher pricing in Flagstaff. There is a silver lining, however…interest rates are at an ALL TIME LOW.

Many buyers don’t know what a lower interest rate can do to their buying power. According to one of our preferred lenders, Erin Moore with PrimeLending, “most people think in terms of qualifying to buy up to a certain dollar amount but that’s actually not true because borrowers qualify for a payment. When rates are lower, comparatively speaking, a borrower can have the same payment when they borrow more money which translates to a higher-priced home.”

Dana Rich with Wallick and Volk points out, “the monthly payment on a $400,000 loan last year was $2,161. This year the same loan payment is $1,936. That’s a $225 monthly savings! Now is the time to trade upon a new home without increasing your payment too drastically or to stop renting, and start investing by buying a home.”

These two amazing loan officers are always happy to answer any questions you may have about rates and what you qualify for right now. Erin can be reached at 928-864-5846 and Dana can be reached at (928) 556-5562.

There are so many different options available right now with these great rates. If the house pricing in Flagstaff has you on pause right now give us a call and we can chat about how now may be the perfect time for you in the long run. Hang in there and stay safe!

– Everyone on the Elite Team




A lot of the time and effort we spend on writing content for our newsletter is focused on the Flagstaff real estate market. While we are very in tune with our market on a local level we must also keep abreast of the events happening on the national level.

2020 has been a crazy year so far and we are just over halfway through. The pandemic shutdown has had severe impacts on the economy, employment, and consumer confidence.

We reached out to Flagstaff Regional Economist, Ronald Gunderson, Professor Emeritus, and asked for his thoughts and input on the global and US economy. On the next page are some of the questions we asked and his very informative responses.

A lot of the time and effort we spend on writing content for our newsletter is focused on the Flagstaff real estate market. While we are very in tune with our market on a local level we must also keep abreast of the events happening on the national level.

2020 has been a crazy year so far and we are just over halfway through. The pandemic shutdown has had severe impacts on the economy, employment, and consumer confidence.

We reached out to Flagstaff Regional Economist, Ronald Gunderson, Professor Emeritus, and asked for his thoughts and input on the global and US economy. On the next page are some of the questions we asked and his very informative responses.

Looking towards the future, what key elements do you recommend we keep a close eye on for global and US-related economic issues resulting from the Covid-19 pandemic?

We should expect significant changes in consumer behavior and consumer spending patterns as we adjust to a new normal resulting from the current pandemic. Some of these changes are likely to become permanent and will lead to a host of alterations in the economic landscape.

One element of interest relates to the percentage of people who most likely will work permanently from home instead of from the office. According to one J.P. Morgan analyst, the percentage of people who work from home will double from 15 percent to 30 percent of the U.S. workforce. Employers might be happy to support this change so long as productivity levels are maintained, and if the change in the work environment results in reductions in rental costs as firms downsize to smaller amounts of office space. For some businesses, this could also lead to moving their entire business operations to new localities where overall costs-of-operations are less expensive.


The increase in the number of people working at home will also bring about massive changes in consumer expenditures. These workers are very likely to reduce their spending on clothing and apparel. In addition, the demand for public transit as well as for private automobiles and auto-repair services could drop significantly when people do not commute to work on a daily basis. Furthermore, deli’s and other small business operations which cater to workers on their daily lunch breaks will also be negatively impacted due to the reduction in the amount of foot-traffic in their vicinities. This will result in fewer purchases of food items consumed away from home, and unfortunately, will also lead to an increase in the number of small business closures in food and related industries.

A second element worth watching is the rise in the personal savings rate which began earlier this year when consumer spending crashed during the lockdown. Although spending has rebounded over the past two months, consumers remain very cautious, and history suggests the change in spending habits will result in a “savings glut” which could continue for several more years.

During times of increased household savings, combined with curtailments in consumer spending and borrowing, businesses will hire fewer workers which leads to lower incomes as well as declining tax revenues which are critical to support local government operations. This change in consumer saving patterns could hamper the national economy as well as local economies for much of the upcoming decade.

How will the combination of an election year and the Covid-19 impact our economy?

There is little doubt in the minds of most people that the ongoing presence of the coronavirus during this election year will impact the economy, however, the amount and the direction of those impacts is far less predictable.

Politicians from both political parties are happy to support stimulus programs which benefit local businesses and potential voters in their districts during the upcoming elections; however, underlying questions continue to exist with respect to “how much fiscal stimulus is enough vs. how much is too much” and do these federal dollars reach those businesses and households who need the funds, or do they end up in the pockets of those who benefit from a political agenda regardless of their needs?

The prevailing consensus is that the government still needs to offer additional fiscal stimulus to keep the economy from derailing when existing programs expire, and to prevent the level of economic activity from slipping backward, potentially prolonging the recession well into 2021 or even further into the future.

What does the future hold?

The ultimate question in the minds of many persons revolves around the path or trajectory which will lead the economy to recovery. Unfortunately, given the unpredictable nature of this virus along with the diversity in the responses of U.S. residents to contain the spread of the virus, an accurate assessment of this path will only become apparent in hindsight.

However, what is most likely to occur will be a series of ‘fits and starts’ where the economy moves forward and then retreats in tandem with the loosening and tightening of restrictions impacting the business and residential communities in states across the nation. This is sometimes called a W-shaped recovery.

Current and future restrictions and regulations will not only impact what individuals and businesses “are permitted” to do, but they also influence the willingness of people and businesses with regard to how comfortable they are to socially interact and spend or invest more dollars once restrictions are lifted.

No one has the answers to these questions today, but it is not unreasonable to think that this bumpy road to recovery could extend into 2022 or 2023, or even longer.



Towards the beginning of April, there was uncertainty about what impact COVID-19 and the economic shutdown would have on the Flagstaff area housing market. Many sellers held off on listing their property, partly due to the concern of being exposed to the virus, partly because some felt the market would be slowing down. Real Estate in Arizona was deemed an essential business.

Our industry began investing in virtual tours for listings. We implemented strict safety guidelines for showings to help minimize the risk. March 15th the Federal Reserve slashed interest rates to zero and guaranteed they would back a minimum of $700 billion in mortgage-based bonds. While mortgage rates are not set by the government, it was anticipated investors and the banking world would keep mortgage rates low, attracting buyers.

The housing market in Flagstaff experienced a decline in sales volume in April. While some buyers felt this might cause a dip in the market, low inventory levels remained and prices showed no signs of weakness. Towards the end of April, more and more sellers decided to put their homes on the market and buyers reacted. We saw an increase in pending homes sales and anticipated a strong market beginning to brew.

May and June’s sales began briskly then quickly exploded as Buyers scrambled to purchase the very limited inventory available. In June there were 136 single-family homes sold which we believe is a record for sales volume in a month for the Flagstaff area. Sales were very strong in all price ranges and our limited inventory became even more scarce as we headed into our traditionally strong selling season (June, July, and August are the most active months).

Finishing out the quarter there were 279 single-family homes sold which was just off the mark when compared to the same quarter in 2018 & 2019. Prices continued to climb and our median sales price for single-family homes rose to $484,900 for the quarter. Even more interesting is the number of pending homes sales. When the pandemic began, we started tracking the pending home sales (watch our monthly sales report on our blog). Keeping an eye on future sales would give us a better understanding of how the market was reacting. As of July 13th, there were 261 single-family homes pending (under contract) in the Flagstaff area. This is sure to make for a very strong Q3 for this mountain town.

Already one month into the last half of 2020, we anticipate prices to rise as inventory levels remain low. New construction is coming along in the Flagstaff area but is not able to keep up with demand. We do not see major changes in mortgage rates for quite some time which should help boost confidence for buyers on the fence. We will continue to watch the pending sales as this will be the first trigger for any market changes. There is still uncertainty about what our economy will face in the coming months due to the increase in Covid-19 cases and the potential for another economic shutdown. We are also curious about what, if any, changes will arise during the November general election. What’s next 2020? We’re ready for it!!!

Listed are the quarterly numbers for the Flagstaff market broken down by housing type. We would love to hear your thoughts on the market and, of course, answer any questions you have about buying or selling your home. Give us a call.

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).



Arizona Community Foundation of Flagstaff Housing Fund

If you’ve lived in Flagstaff for any period of time, you’ve probably heard the term “affordable housing” when discussing Flagstaff real estate. For the last several decades, Flagstaff has struggled with the balance of needing a vibrant, healthy economy, and housing options that are affordable to attract and keep the local workforce healthy and growing. While all of us have heard or discussed it in one way or another, it can be hard to quantify how hard it is for many to find affordable housing options here in our amazing community.

At any given time, there are over 700 families on the waiting list for the City of Flagstaff housing programs! Additionally, a 2017 study by Flagstaff’s ECONA (Economic Collaborative of Northern Arizona) set out to find just how bad the situation was, with some surprising results.

How hard is it to find affordable housing options in Flagstaff?

According to the study, 43% of Flagstaff households are cost-burdened with housing, meaning they pay more than 30% of their income on housing alone. 60% of renters here in Flagstaff are the same. This has lead to 43.6% of employees that participated in the study, from numerous employers and salary levels, to say that they plan on leaving Flagstaff in the next 5 years. The implications are far-reaching with our neighbors, teachers, firefighters, police officers, cooks, and more planning to leave because they simply can’t afford a home here.

It’s definitely a complicated issue, but there are many in Flagstaff working hard to help in any way they can. At the Elite Team, we’re excited to say we’re doing what we can to help! Tad, along with many other community members, has been working hard with the Arizona Community Foundation of Flagstaff to develop a new Northern Arizona Housing Fund to help tackle the issue head-on.

Since 1987, the Arizona Community Foundation has been helping non-profits and philanthropists raise and donate funds to a plethora of amazing Flagstaff organizations. Under their leadership, the Northern Arizona Housing Fund will allow community members to help in any way they can and get those funds into the hands of those that can help with affordable housing the most.

With the support of the Northern Arizona Association of Realtor®s, Realtor®s, escrow officers, buyers, and sellers, can make a small donation to the fund directly through escrow, without having to take any additional steps, and know that they are making a difference on so many lives in Flagstaff!

Community members can even donate directly at

Once the fund reaches $25,000, the Arizona Community Foundation of Flagstaff will open a grant cycle for local non-profits to apply for grant funds for specific projects related to housing here in Northern Arizona. Local organizations like Flagstaff Shelter Services, Habitat for Humanity and Housing Solutions of Northern Arizona, submit specific grants, at which point the Housing Fund Committee reviews, scores, and ultimately disburses funds where they are so desperately needed. If you have a specific housing organization that you would like your funds to go to, you can even designate where your donation will go right on the website! And no donation is too small! Just $25 can go a long way to helping so many of our neighbors with housing in the community we all love!

At the Elite Team, we are doing what we can to help! We will be making a donation with every transaction as well, and hope that our amazing clients will consider doing the same! With a little help from all of us, we can make a positive change on housing here in Flagstaff!


Featured Listings

782 N. Canyon Terrace Dr, Flagstaff, AZ 86001 | $510,000 | MLS #182176


This home is a rare multi-generational gem in the heart of Flagstaff! Whether you are looking for a full-time residence, a vacation rental, or a multi-generational home, this one has that and more. 3 of the 4 bedrooms are upstairs, including the master bedroom with its own en suite bathroom. You will love the beautifully updated kitchen with butcher block countertops and direct access to one of the many decks perfect for a family BBQ or a peaceful day relaxing in the pine trees. Downstairs you will find a large living area, additional bedroom, and a small kitchenette making it ideal for a mother-in-law or guest quarters. The downstairs living space also has its own decks and private entrance through the side. The Large backyard has a fire pit to roast marshmallows or just sit next to on those fall flagstaff nights. Only a stone’s throw from Flagstaff Medical Center, and the fantastic downtown Flagstaff for dining, entertainment, and shopping! Between the fantastic location and dual living spaces, this home is a rare find!

620 Kiowa, Flagstaff, AZ 86005  | $265,00 | MLS #182432

The cutest, most charming little A-frame in the Pine Trees! Located just 15 minutes south of Flagstaff you truly get that private, quiet, serene feeling but still close to amenities. If you have dreamed of that “cabin in the woods” this is the home for you. This home offers 2 nice- sized bedrooms, a multi-purpose loft/office or 3rd bedroom, and 1 bathroom. You will love the cozy warmth of the beautiful pine wood flooring, wood countertops, and tongue and groove wood ceiling. The nice open concept allows for that perfect flow between the kitchen, living room, and dining area. A large picture window in front allows for tons of natural light. The gas stove will keep you nice and toasty all winter long. Fantastic, fully fenced in backyard with plenty of space for gardening, relaxing, or just watching your furry friends run around from the nice back deck. This adorable Mountainaire charmer won’t last long!



Our agent was patient, honest, and professional. He always communicated quickly and was very knowledgeable of the market. He went the extra mile when working with our sale (we had a tenant occupied condo for sale) as we were living out of state. I am so thankful we chose the elite team as our agents, and I highly recommend them!” – Jen

My husband and I used the Re/MAX Elite Team to sell our house. These are stressful times for everyone, but they made the process easy and efficient. Our agent ensured that her team and the buying party would follow CDC guidelines to keep everyone safe. We are beyond happy with the outcome and look forward to working with the Elite Team again in the future.” – Amber


Here’s our thoughts and experiences as a home buyer during these US pandemic times. It did not stop us from accomplishing finding our dream home. Our feelings towards our modern technology just proves even more during the pandemic times that we can still move forward with our accomplishments without physical appearances. Our RE/ MAX realtor followed safety guidelines to protect the buyers and sellers homes during the pandemic times. After all is said and done, I see that virtual tours through internet technology will be the next hot ticket for buyers looking out of their state to be very convenient and easy. We are so grateful and love our experience with our realtor on the Elite Team, the Lender team and Title Company team during the pandemic times! With much gratitude. – James & Cristine McJunkin

Having a flexible, personable and innovative Realtor, even in the midst of COVID, gave Blake and I an excellent experience selling our home. We had to push back the opening day a few times due to our kids coming home during the stay at home quarantine, but because of the flexibility and Virtual innovation used by The Elite Team @ RE/MAX Peak Properties the first day our sweet home went on the market we had an excellent offer! Thanks Elite Team @ RE/MAX Peak Properties, we are now living the dream in our 5th Wheel Traveling!” Blake & Stephanie Boardman

Buying a house during COVID-19 was filled with questions. Could we hire movers? Would we be able to get the house cleaned, repairs made? Will we close virtually or in person? The one question we never had was if our realtor would be available to help us. As COVID-19 escalated, so did her precautions to keep us, herself and the sellers safe. We are so glad we didn’t wait to buy and are happily moved in and starting summer house projects.” The Blackards


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.

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120 N Beaver St. | Suite 100
Flagstaff, AZ 86001
(928) 714-0001
[email protected]

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