As I was studying the MLS hot sheet for Flagstaff home listing changes since last Friday, I noticed quite a few sales. The price per square foot of the sold homes varied widely – from $121 per square foot to over $240 per square foot. Of course, the homes varied widely, too: From stripped and unlivable to a pristine Flagstaff Country Club townhome. There was another luxury property on a one-acre lot in the same region of Flagstaff in the same higher price per square foot range.

What’s the lesson in this for buyers who may be hesitating about buying a Flagstaff home? Very little. One cannot tell from such a snapshot of the market what is going on in the Flagstaff real estate market except this: You will not find a home for $50 per square foot – and it’s highly unlikely that we’ll see one for $100. Also, you can tell that Flagstaff homes are selling. Some buyers think the time to buy is now. After all, the prices per square foot are down from a year ago, when they were down from the year before, and folks need a place to live!

Will Flagstaff home prices go lower? Perhaps. But signs are that Flagstaff home prices are leveling out. At most we will not see the kind of drop we saw in the last year. Meanwhile, interest rates are going up. If your goal is to buy a home, this is a great time to do it and here’s why: A 10% home price drop is immediately nullified by a 1 percentage point increase in prices.

Note: assumes a 90/10 loan-value.

Even at 6.5%, rates will be considered low and favorable to the housing market. I’ve lived through (and bought homes) when interest rates were over 12%. The question is not, do you want a home, or do you want a “deal.” The question is do you know what the deal is? Timing the market is a bad idea whether it’s stocks, bonds, or homes.

If the market you want to be in is one that will give you a home in Flagstaff, start here: Team Heitland at RE/MAX Peak Properties. Or, give us a call: 928-714-0001.