April numbers for the Flagstaff real estate market show that prices have dropped significantly, yet sales volume remains low. The one category of Flagstaff housing where buyers are experiencing a squeeze is for single-family-homes under $300,000, where sales have been so fast that we’re down to under 6-months’ supply of homes on the market. First-time homebuyers have been out in force looking to take advantage of low interest rates, lower Flagstaff home prices, and the $8000 first-time-homebuyer tax credit.

Here’s the April picture of Flagstaff home sales:

Of the 34 Flagstaff homes sold, five were bank-owned and 4 were short sales, meaning that over 26% of sales were of distressed properties.

To add to this depressing picture for sellers, as of May 3, there were 20-months’ worth of homes for sale at the pace of sales the Flagstaff real estate market hit in April. This is up from 14-months’ worth at the beginning of April because many homes were newly listed during the month.

The only note of encouragement for sellers is that the number of sales may have been artificially depressed in April because lenders are extending closing times because it takes longer to process loans than it used to and refinancing transactions are overwhelming the lenders and appraisers. Thus, some closings that might have taken place in April will show up in May. So far, we’re ahead by a couple of closings compared to the first 11 days of April. Time will tell. The key to selling your home in this market is pricing it right.

The numbers discussed here are for single-family, “stick-built” homes in the greater Flagstaff area – meaning inside and outside the city limits, any home with a Flagstaff mailing address. The figures represent sales as reported in the multiple-listing-service of the Northern Arizona Association of Realtors^® and may not reflect all sales in the area.

Look for an update on condominium and townhome sales coming soon.

To buy or sell any Flagstaff home, please contact Team Heitland at RE/MAX Peak Properties.