On June 12, the Flagstaff local paper, the Arizona Daily Sun, reported statistics for May real estate sales. They were available here on June 4. The Daily Sun took the time to interview a variety of local real estate agents, each with an interesting and somewhat different twist on what is going on with the Flagstaff real estate market. (I was slammed with work the day the reporter called and was unable to comment in time to meet his deadline.) For starters, the statistics show that smaller, less expensive Flagstaff homes are selling at a more rapid pace than larger, more expensive Flagstaff homes. The Flagstaff paper sensationalized this, as the media does, with the headline: “Larger Homes Sitting Idle in Buyer’s Market.” The paper went on to cite a number of factors believed to be responsible for the greater sales among the smaller, less expensive homes, based on interviews with Flagstaff real estate agents. Steve Brighton, one of my former colleagues at CENTURY 21, observed that “sellers are really beginning to understand that they can sell their homes this season if they are willing to come down in pricing.” Yes, Steve, at least some sellers have realized that harsh fact. Others have not. Homeowners not willing to lower their prices in this market are not going to be “sellers.” They may be victims of foreclosure in the worst cases, or they may be taking their homes off the market and placing them for rent, or just deciding not to move for the next 2-3 years. Long-time Flagstaff agent Allen Ginsberg noted the impact of higher interest rates on jumbo loans. The difference between a conventional, non-jumbo home loan interest rate and a jumbo rate is at least 1.25%. One price category got a boost in Flagstaff this spring when the defined jumbo category was raised to $450,000 (it is less in the Phoenix area). Without that change, the larger homes would be in even worse shape than they are. Unfortunately, the interest rate trend is upward in light of the inflation this country has going on. Rates are still historically low, and if you’re buying shelter for the long-term, the rates are good enough to make the move. Jim Snook, another Flagstaff real estate agent, noted that location in the Flagstaff metro area is important – a factor that did not matter a few years ago when anything with a Flagstaff mailing address was a “hot item.” As noted here on June 4, west side and downtown Flagstaff have fewer unsold homes than the eastside and rural areas. For the truth about the way to get your Flagstaff home sold, give us a call at Team Heitland at RE/MAX Peak Properties. We won’t sugar-coat the story. Our job is to get your home sold, honestly, efficiently, and effectively. |
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