What's New | Flagstaff Real Estate and Community News

Fed Will End Mortgage Rate Support This Month

Tue, 16 Mar 2010 22:40:17 -0500

The Federal Reserve will cease its year-long support for mortgage bonds at the end of this month

The Federal Reserve grabbed headlines today with its intention to keep the federal funds rate near zero. Buried in the text of the Federal Reserve Open Market Committee's announcement today was the following statement: "To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month." This video is one analyst's view of the impact this change will have on mortgage interest rates. (Preview: he's counting on private capital to fill the gap.)

Mortgage Rates Continue Below 5%

Sun, 14 Mar 2010 20:14:36 -0500

The 30-year fixed rate for home loans remained below 5% in Freddie Mac's latest survey

Mortgage rates “eased somewhat” in the latest weekly survey reported by Freddie Mac on March 11. The results of Freddie’s Primary Mortgage Market Survey® showed the 30-year fixed-rate mortgage averaged 4.95 percent with an average 0.7 point for the previous week, down from the prior week’s survey, which still showed rates below 5%, averaging 4.97 percent. Last year at this time, the 30-year FRM averaged 5.03 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“During a light week of mixed economic reports, mortgage rates eased somewhat,” said Frank Nothaft, Freddie Mac vice president and chief economist, in the Freddie Mac press release. “Pending existing home sales fell 7.6 percent in January, well below the market consensus of a 1 percent gain. Meanwhile, the economy lost only 36,000 jobs in February, fewer than market forecasts, and the unemployment rate held steady at 9.7 percent. In addition, revisions added a net 35,000 workers to January and December combined.”

Here’s the latest Flagstaff home sales report.

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To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.

To search the Flagstaff MLS, click here!

Click here to see my featured Flagstaff home listings.

Monthly Flagstaff Real Estate Report

Fri, 12 Mar 2010 00:06:29 -0500

February Flagstaff home sales look like a mini-bubble

February Flagstaff home sales were up in volume, up in median price and up in average price compared with February 2009 and with January 2010. February’s median home sales price for a Flagstaff single-family home was $335,000. That compares with $303,000 in February 2009 and $300,000 in January 2010. The price-per-square-foot of a Flagstaff single-family-home sold in February increased from $131 in January to $145 in February.

Inventory of single-family homes for sale dropped from over 13-months’ worth at the beginning of February to 10.98 months’ worth at the beginning of March. Forty-one single-family-homes sold in Flagstaff in February 2010 versus 33 in January and 27 in February a year ago.

Here is a breakdown of single-family Flagstaff homes by price range:

Price Range	Homes Sold February 2010	Homes for Sale As of March 7	Months’ Worth Of Supply	Percentage of Sales
Under $300,000	18	121	6.7	44%
$300,000-$399,999	10	106	9.4	24%
$400,000-$499,999	7	67	10.4	17%
$500,000-$599,999	0	34	--	0%
$600,000 and up	6	124	20.7	15%

Flagstaff townhome prices bounced from a low median sales price of $179,000 in January 2010 to a median of $215,000 in February. But there were only six townhome sales and 57 were being actively offered for sale at the beginning of March. In February 2009 the median sale price was much higher ($243,500), but only three sales were produced at that price. More than one partially-built Flagstaff townhome development has gone into foreclosure.

Manufactured homes are in worse shape with 54 homes on the market and only one sale last month – a short-sale that set a record low price in recent years for the Railroad Springs subdivision.

Are the February Flagstaff home sales results a cause for optimism about the 2010 Flagstaff real estate market? Probably not. Eleven of the 41 single-family home sales (26.8%) were bank-owned homes (foreclosures). As readers of my blog and print newsletter know, foreclosures will not let up from now through the next 2-3 years without some major change in government policy. Banks price to sell and they are getting them sold, leaving other homeowners who will not meet the market price set by the banks in the dust.

Everything that I hear indicates that February’s uptick is not an indication of better things to come in the spring in the Flagstaff’s home market. Instead, buyers are rushing now to get a home under contract by April 30 in order to qualify for the tax credit set to expire then. Spring will bring more homes onto the market – both foreclosures and the traditional sellers. Increased inventory will mean more competition for Flagstaff home sellers. The tax credit incentive will be gone so that improvements in home sales will depend on job creation. Without improvements in the Arizona economy, there will be almost no second home market in Flagstaff, a factor that in the past has spurred Flagstaff home sales and prices.

Will there be a substantial drop in Flagstaff home prices? My guess is not. Rather, we are in for a long-trough of prices about where they are. For buyers, any additional drop in prices is likely to be offset by increases in mortgage interest rates that will inevitably happen as the economy improves. So now is a good time to buy, and so will be the next couple of years.

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Note: All numbers reported here are based on sales of homes with Flagstaff mailing addresses, whether in the city of Flagstaff or the surrounding rural-suburban areas. The reported data comes from information as reported to the Northern Arizona Association of Realtors^® and is deemed reliable for sales reported to the association, but is not guaranteed and does not include all sales in the market area.

Flagstaff Condo Update

Thu, 11 Mar 2010 13:31:29 -0500

Here's the latest on condominum sales and developments in Flagstaff AZ

This morning's Flagstaff MLS hotsheet showed price reductions on the last units available at The Villages at University Heights. With only ten units left to sell, the developer is advertising "blow-out prices" plus incentives to move these units in the most popular of Flagstaff's apartment-to-condo conversions. Two bedroom units have been reduced $10,000 from the price they have held since the development was introduced in 2007. Meanwhile, the Flagstaff MLS reported that five condos sold everywhere in the city during the month of February. Here's some background:

Three major Flagstaff apartment complexes were converted to condominiums in response to the demand for low cost housing and the real estate boom. The first sales of these units were in 2006 at The Arbors on West University Avenue about a mile from Northern Arizona University. The 310 converted apartment units at The Arbors included studios and one and two bedroom units. The developer is still selling condos at The Arbors and these condos are available through the Flagstaff MLS.

The most successful, so far, of the conversion projects is The Villages at University Heights. Only a ten of these units are left for sale according to the developer's morning ad. They are also available through the Flagstaff MLS, so give me a call if you want to grab one. Also about a mile from NAU, these units had the advantage of cross-ventilation thus allowing them to take advantage of Flagstaff's cool mountain climate in summer.

The most recent of the Flagstaff condo conversions is Timberline Place in the Country Club area of Flagstaff. These have been more expensive than the others, and are slightly larger. Many of the units are still for sale, and are available through the Flagstaff MLS.

Other condos are available for resale in Flagstaff. The University Meadows project on Riordan Ranch Road is adjacent to Northern Arizona University. Condos in this development are available for resale through the Flagstaff MLS. The popular 4th Street project known as Summit Park has resale units available as do several developments in Flagstaff's Country Club area.

To buy a condo in Flagstaff, send me a note or give me a call. I'll give the the full scope of what's available right now in Flagstaff condos!

Hey, what is a condominium? A condo is a piece of real estate without land – you own floor space only, and the right to use common areas owned by the homeowners’ association involved with the development. That contrasts with a townhome, where the ownership includes the land under, and usually around, the structure as well as, usually, the right to use common area.

Flagstaff Realtor's Diary

Tue, 09 Mar 2010 23:47:40 -0500

Here's what I did in Flagstaff real estate today

Like everyone else in Flagstaff, I struggled with a March snowstorm on Tuesday, and like many folks, I watched the city council primary results flow in -- and the school override tax triumph. Meanwhile, I did quite a bit of real estate work:

First, I got a counter offer from the bank-seller on a property for one of my homebuyer clients. Reviewed those detailed, proposed addenda and spotted a couple troublesome clauses that needed decisions. Communicated all of that to my client (a group that needed to consult and review among themselves before responding).

Then I took off into the storm to preview a potentially great Flagstaff home listing (forest service land on two sides, architectual features, efficient heating system... more on that, I hope, in the next week or so). After that, I headed into town for a briefing on state-wide activities in this election year that could impact Arizona for years to come. While I was driving, got the word that an appraisal for a home in a popular Flagstaff neighborhood came in lower than expected -- we started running into this problem just about this time last year. Too few home sales over the winter makes appraising difficult, and it could well be an indication that Flagstaff home prices will fall again this Spring.

I came out of my lunchtime meeting to realize the roads were a disaster and I should not be showing Flagstaff homes at 3 p.m. as previously planned. Cancelled that home buyer appointment -- we've rescheduled for Friday when it should be bright and sunny here in Flagstaff and a great day to look at a Flagstaff home. Fought my way home through the storm and got on line and on the phone for the next three hours to deal with the negotiations on the bank-owned purchase that started the day -- numerous calls about title insurance issues, survey timing, and inspections. Drafted counter offer.

Back to appraisal issue... worked out strategy with my client on that and communicated to home seller's agent. Turned my attention to election returns and catching up on email for the day. Found a price change to make for another client -- great Flagstaff home for sale, that's perfect for a first-time home buyer who wants an acre with the home.

All of this activity means that my monthly Flagstaff real estate update with February Flagstaff home sale data is delayed again, but here's preview of what I've gathered from the MLS statistics: volume up from January and so is the median price. What that means is more large homes sold; the $400,000-$500,000 price range is beginning to see life (but those are homes that were at least a $100,000 higher once upon a time).

I am never too busy to answer or return your call about Flagstaff homes. When you are ready to buy or sell, call: 928-714-001. I'll make sure you are well taken care of. To learn more and to search for all Flagstaff homes on the market, visit my website.

Symphony Week in Flagstaff

Mon, 08 Mar 2010 10:55:25 -0500

Flagstaff Symphony Orchestra is more than one performance

This is "symphony week" in Flagstaff as many call the week of rehersals and events leading up to the FSO performance on Friday night. Flagstaff Symphony Orchestra's Maestra Elizabeth Schulze is in town working with the orchestra. Events leading up to Friday's performance include a movie in downtown Flagstaff on Tuesday night, at the Orpheum Theater. On Wednesday, Ardrey Auditorium on Northern Arizona University's campus will host student readings inspired by Beethoven. There are other, non-public events thoughout the week, including, of course, intensive rehearsals for the big performance Friday night.

Another great reason to live in Flagstaff!

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Friday a.m. update: See what I mean about Flagstaff being a great place to live: Beethoven rules this Week, from Arizona Daily Sun.

Pending Home Sales Report

Sat, 06 Mar 2010 15:28:16 -0500

Homes under contract increase in January, but not as much as some expected

Nationally, pending home sales for January, though higher than one year ago, were much lower than expected given that a large number of potential buyers who are eligible for the expanded home buyer tax credit. The National Association of Realtors^® blames abnormal winter weather for the low rate of home sales contracts signed in January.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed. Sales are usually finalized (“closed”) within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

This week’s release of home sales data showed the Pending Home Sales Index fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December, but remains 12.3 percent higher than January 2009 when it was 80.5.

NAR forecasts a surge in the index in April when weather will be good and buyers will be facing a deadline to sign contracts by April 30 in order to claim the home buyer tax credit.

To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.

To search the Flagstaff MLS, click here!

Click here to see my featured Flagstaff home listings.

Are Homeowners Even Asking?

Fri, 05 Mar 2010 00:05:38 -0500

The most important feedback on your home may be the fact that you got none

If your Flagstaff home is listed for sale and you’re looking for feedback on why your home has not sold, take time for a little introspection. I noticed this blog post on the website of the automated feedback system that I use to obtain feedback on showings of the Flagstaff homes that I have listed: 4 Ways to Check If It’s Time to Reduce Listing Price.

When you want a Realtor^® to ask the right questions, give me a call.

Visit my website for information on how I market Flagstaff homes.

Rates Below 5% -- Again!

Thu, 04 Mar 2010 23:32:36 -0500

Mortgage rates ticked down below 5% for the week according to Freddie Mac's weekly survey

Over the last week, 30-year fixed mortgages fell below 5 percent again to match levels seen two weeks ago. This according to Freddie Mac’s weekly Primary Mortgage Market Survey^®. The 30-year fixed-rate mortgage averaged 4.97 percent with an average 0.7 point in loan costs paid to obtain that rate. Last year at this time, the 30-year rate averaged 5.15 percent.

Low mortgage rates “are helping to maintain affordable home-purchase conditions," said Frank Nothaft, Freddie Mac vice president and chief economist.

For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009.

Here are the numbers:

To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.

To search the Flagstaff MLS, click here!

Click here to see my featured Flagstaff home listings.

Downtown Flagstaff Is The Place To Be Friday

Thu, 04 Mar 2010 23:22:25 -0500

Flagstaff's First Friday Artwalk This Friday

Looks like Flagstaff have a break in the blustery March weather just in time for First Friday Artwalk in downtown Flagstaff. So put on your hats and mittens and head downtown for a great Flagstaff evening. This is another great reason to live in Flagstaff!

Here's a map for Flagstaff's First Friday Artwalk -- download and print as your guide.

Which Home Sales Headline Did You Hear?

Thu, 04 Mar 2010 00:30:30 -0500

January home sales were down from December but up from January 2009

Last Friday, the National Association of Realtors® released its monthly report on homes sold through multiple-listing-services throughout the U.S. Although existing-home sales are above year-ago levels, what grabbed most headlines was the 7.2% drop in sales from December. Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 11.5% compared with January 2009. (These are unit sales, not price increases or decreases.)

Lawrence Yun, NAR chief economist, said, in his usual understated manner when there is bad news to deliver: “The latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”

Reduced inventory levels (the number of homes for sale) may account for the firming-up of prices that was reflected in the January sales numbers. Total housing inventory at the end of January fell 0.5 percent to 3.27 million existing homes available for sale, which represents a 7.8-month supply at the current sales pace on a national basis. This absorption rate is slightly higher than in December, due to the slowdown in sales as well as to the decrease is homes listed for sale. Raw unsold inventory is 9.6 percent below a year ago, and is at the lowest level since March 2006. This is not necessarily good news since we know there is a desire to sell – banks are simply slow in processing foreclosures and other homeowners are giving up and pulling their homes off the market.

The NAR practitioner survey, a separate data-collection device from the monthly home sales report, showed some positive indications: Investors accounted for 17 percent of transactions in January, up from 15 percent in December. When investors begin to come into the market, it means prices may be hitting bottom. The survey also shows that overall buyer traffic increased 9.4 percent in January. It’s taking a while for these new prospective buyers to sit down and write offers, however.

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To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.

To search the Flagstaff MLS, click here!

Click here to see my featured Flagstaff home listings.

Looking for a Little Elbow Room?

Wed, 03 Mar 2010 23:48:48 -0500

This Flagstaff home is a hop, skip to town, but far enough out to give you the space and the vistas you crave!

If you dream of panoramic views, you’ll love the deck, the great room, the master bedroom, and the sunroom of this quality home in rural Flagstaff. Nestled on a hillside and in the pines, this home offers great comfort, quality, and fabulous views. You’ll barely be aware you have neighbors and you’ll also be minutes from the Flagstaff Mall and the grocery store that’s been consistently voted “Best of Flagstaff” by Arizona Daily Sun readers for years.

The home have the most comfortable and efficient heating system for Flagstaff’s climate – hydronic, in-floor heat radiates upward to warm the floor, then the furniture, then you -- with efficiency and without the blowing, dusty air of forced air heat.

The great room has wood-lined ceilings and windows designed to feature the panoramic view, surround you with light and bring the fresh mountain air into your home. The great room incorporates a hidden office alcove and window-surrounded reading room. The low-maintenance, composite deck extends your living area to the outdoors from the main room of the home and from the wrap-around sunroom.

Adjacent to the main living area, and open to it, you’ll find a well-designed kitchen has attractive, solid-wood cabinets and deep drawers. Also on the main level of the home, you’ll find one bedroom and a full bath. Downstairs is a family room, the master suite, a third bedroom, laundry, storage and beautiful scored-concrete flooring.

Over the garage, you’ll find a room with its own architectural significance – created, again, by gorgeous use of windows and a wood-lined ceiling. This room is wide-open and ready to be adjusted to your needs: Art studio? Game room? Craft room? Perhaps a place to “store” the teenager…. Whatever you need!

To learn more about this lovely Flagstaff home on Crisp Hill in the Timberline neighborhood, follow this link. Or visit the featured home section of my website: http://www.BestFlagstaffHomes.com.

Mortgage Interest Rate Update

Sun, 28 Feb 2010 21:18:27 -0500

Home loan rates remain low in the latest reports

Last week’s Freddie Mac Primary Mortgage Market Survey^® showed 30-year fixed-rate mortgage interest rates averaging 5.05 percent with an average 0.7 point given at closing to obtain that rate during the week ending February 25, 2010. This report showed the rate up from the prior week when it averaged 4.93 percent. By Friday, however, the reports from local Flagstaff lenders were that mortgage interest rates were “softening.”

Here are the Freddie Mac survey results:

Mortgage rates generally move higher as the economy improves. Last week’s economic news was mixed. News in the housing market was hard to read. The February Case-Schiller housing index report had some good news and some bad. The National Association of Realtors^®January existing home sales report showed sales down from December, but up from January 2009. The stock market was up overall for the month of February.

“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.”

There is another factor at work on home loan rates. That’s the fact that the Federal Reserve has been supporting low rates for almost a year by buying mortgage-backed securities. The Fed’s commitment to do that expires March 31. The Fed has extended its commitment before, but if it does not, we’ll see rates rise.

To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.

To search the Flagstaff MLS, click here!

Click here to see my featured Flagstaff home listings.

Update on Flagstaff’s Ponderosa Trails Neighborhood

Sun, 28 Feb 2010 20:05:56 -0500

Ponderosa Trails’ home prices have leveled out over the winter

Home prices in Flagstaff’s Ponderosa Trails neighborhood have fallen significantly since 2007, along with the rest of the Flagstaff real estate market. A closer look shows that home prices have leveled out over the last three months; however, during that time the supply of homes has climbed significantly. That’s an indication that prices in the Ponderosa Trails neighborhood are likely to drop again soon.

Here’s a snapshot of the Ponderosa Trails home sales market for the last year:

In the last six months, twenty percent of the home sales in Ponderosa Trails have been REO (bank-owned) properties. One home closed as a short sale. The number of short sales is likely to increase significantly soon since four appear to have been approved and are pending inspections, appraisal and closing and another eight appear to be under contract and awaiting approval of the sale price by the sellers’ mortgage lenders. Right now, there is only one bank-owned property for sale in the Ponderosa Trails neighborhood while there are eight offered as short sales.

Read about the Ponderosa Trails neighborhood: Blog Post about Living in Ponderosa Trails.

To buy or sell a home in Ponderosa Trails -- or anywhere else in Flagstaff -- give me a call: 928-714-0001.

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Note: The reported data comes from information as reported to the Northern Arizona Association of Realtors^® and is deemed reliable for sales reported to the association, but is not guaranteed and does not include all sales in the market area.

Fun in Flagstaff This Weekend

Thu, 25 Feb 2010 23:46:16 -0500

Last three performances of Merry Wives and other fun this weekend in Flagstaff

Merry Wives of Windsor, Shakespeare's classic comedy, has received great reviews and promises to liven up anyone's weekend. Get your tickets on-line or at the box office at the Doris White Community Theater in downtown Flagstaff.

Saturday is Flagstaff's Big Brothers/Big Sister's annual bowl-a-thon. I'll be stepping up at noon with a team from RE/MAX Peak Properties. Stop by the Starlite Lanes for a good laugh mid-day. You'll be amazed at the crowd!

Whatever you do in Flagstaff this weekend, drive carefully in the the snow and have a great time!

What's New | Flagstaff Real Estate and Community News

Fed Will End Mortgage Rate Support This Month

Mortgage Rates Continue Below 5%

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Monthly Flagstaff Real Estate Report

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Flagstaff Condo Update

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Flagstaff Realtor's Diary

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Symphony Week in Flagstaff

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Pending Home Sales Report

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Are Homeowners Even Asking?

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Rates Below 5% -- Again!

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Downtown Flagstaff Is The Place To Be Friday

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Which Home Sales Headline Did You Hear?

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Looking for a Little Elbow Room?

See Also

Mortgage Interest Rate Update

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Update on Flagstaff’s Ponderosa Trails Neighborhood

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Fun in Flagstaff This Weekend

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