Home Market Spells Opportunity for Flagstaff Homeowners

Many homeowners who don’t need to sell in this market are choosing to sit it out. Fearful that their homes will sell for less than they would have three years ago, many homeowners are missing the opportunity presented by the current real estate market. It’s only natural that a homeowner will focus on the loss in home prices compared with recent years, but “move-up” buyers need to focus on the importance of buying now in order to have a long-term positive impact on their net worth.

The smaller loss at sale will be compensated by greater savings at purchase, resulting in a significant net gain. The example here assumes a 10% drop in the home market at both levels. In fact, in Flagstaff, the advantage may be even greater because the prices of lower-priced homes seem to be beginning to hold while the higher priced homes continue to go down.

An early read on the June Flagstaff homes market shows that the number of sales is likely to be about the same as in May, but the median price, so far, is over $35,000 higher than in May. The median price tells us what price ranges are selling, and so it appears that the volume of sales higher-priced homes in Flagstaff may be improving. Thus, it may be that some homeowners are taking advantage of this market to “step-up” their housing. Certainly, some of my clients are.

When you buy a larger and better home under the current market conditions, you are saving more on the purchase than you lost on the sale of your previous home, and your new home is of often better positioned for appreciation when the market rebounds. If you take the example above, and assume that the homes appreciate 10% in value, the first home gains $27,000, while the second gains $45,000. Over my lifetime, I’ve traded up several times – including in a market when interest rates where 12% and above. Each time, I was able to add to my net worth with appreciation on the larger and better home.

Let me assist you in deciding if now is the time for you to sell your Flagstaff home and trade up to take advantage of this buyer’s market in Flagstaff. Contact Team Heitland at RE/MAX Peak Properties: 928-714-0001.