By Stephen Brighton

April single family home sales came in strong, up 28% from a year ago. There were a total of 69 houses that sold in the greater Flagstaff region vs. 54 in April 2011. Prices however continued to slump. The median sales price dropped to a yearly low of $230,000. This is off 14% from last April and down 3% from last month. In fact three out of the four months so far this year saw the median sales price in the $230’s. If you look at the median price paid per-square-foot in April, of $118 this is the lowest it’s been since the market started declining. We are definitely seeing more activity in the lower priced homes with investors buying and either flipping or renting them out.

Through the first four months of this year, there were a total of 111 distressed sales which includes foreclosures, short-sales and corporate owned. A year ago, for the same four month period, there was also a total of 111.  Percentage-wise this means that so far in 2012, distressed sales have accounted for 47% of total sales in Flagstaff. These discounted sales are definitely driving our market and creating some spectacular bargains in the process.

Observations:

1) Within the Flagstaff city limits, inventory levels continue to remain low especially for houses under $500K, barely a 6 month supply.

2) So far we’re not seeing many new listings come on the market which is highly unusual for this time of year.

3) Mortgage rates remain at 3.625% for a 30 year fixed with good credit

4) In four months, short-sales have accounted for less than a third of total distressed sales despite lenders saying that they are now more willing to do them.

By Steve Brighton

The first quarter of 2012 is in the books and it was the busiest first quarter in 5 years. There were 168 houses sold vs. 155 for the same period in 2011.  Distressed sales totaled 84 which accounted for 50% of the total, which interestingly was the exact same amount we had a year ago. The median sales price dropped 2% to an even $240,000. Comparing apples to apples, the best 1^st quarter was in 2007 when the median sales price was $367K. So this means that we’re now down 35% from the top which is looking a little better than some previous comparisons.

Any real-estate recovery will ultimately come down to supply and demand. On the demand side, sales were up 6% for calendar year 2011 and up 8% in the first quarter of this year. The supply side however is a little thin. For houses within the Flagstaff city limits, under $500,000 there is barely a 6 month supply and 40% of those already have contracts. So unless we see more inventory hit the market it’s going to be slim pickings for buyers in this price range this summer. But this is how a market turnaround starts. 

Observations:

1) Inside the city limits, there is over a 15 month supply of houses priced above $500K

2) Outside the Flagstaff City limits there is over a 3 year supply of house above $500K.

3) 30 year fixed rate mortgages remain at 3.75%

 Creating Positive ch'i When Staging

I get many requests to help my sellers get their homes ready to sell.   I have learned so much from a local Feng Shui expert here in Flagstaff.  

Feng Shui, when applied to a home is really just common sense:  Get rid of the clutter, remove dead or fake plants, repair broken faucets or windows, etc., and you'll reap the benefits!

Here are several "tips" which had success when selling homes to potential buyers:

Get Rid of ALL the clutter:  Cluttered rooms give buyers the impression that the room is too small.  Too much clutter can also make the home appear to be unsightly or dirty. 

*Remember, LESS IS MORE when selling your home.

Open the Blinds or Curtains:   Letting the natural light of Flagstaff (and we have over 300 days a year!), exhibits positive energy and places your home in a "bright light" that really appeals to potential buyers.

Clean the Bathrooms Well:  Don't leave toothbrushes and all your toiletries out for potential buyers to see.  They want to see the bathroom where they will be spending alot of their time - so put your things away and let them see the bathrooms in their eyes with THEIR stuff - not yours!

Dust:  This namesake is really important and dust laying around is like stagnant energy and doesn't fare well with potential buyers!

Remove dried plants or flowers:  This can signify low energy and no life.  Replace them with fresh flowers or plants and see how it makes you feel - This is how potential buyers will feel as well.

And, finally - listen to your experienced Century 21 Flagstaff Realty® agent as they have been in several residences and can help you present YOUR home in its best light ...and ch'i...have fun!

Article By: Stephen Brighton

2011 saw the median sales price for a house in Flagstaff hit a new annual low at $262,000. This is down 6% from 2010 when the median sales price was $280K and down 31% from the top of the market in 2006 when the median sales price was $379K. However, if you look at sales based on price paid per-square-foot, the decline is even more dramatic. In 2006, price paid per-square-foot was $213. In 2011 p.p.p.s.f. was $133. This represents a 38% drop.  From 2010, on a p.p.p.s.f. basis, were off 10%.  Sales  however, picked up slightly over 2010, rising 6% for a total of 768.  FYI in 2006 there were 904 house sales.

In 2011 there were 312 distressed sales (212 foreclosures and 100 short-sales) accounting for 41% of total sales. This is a 16% increase over 2010 when distressed sales numbered 270 or 37% of total sales. Of note, short-sales were up 30% in 2011, while foreclosures rose 10%.

Looking at figures for just the month of December, sales were off 12% year-over-year and prices dropped 11% to a median sales price of $233,750.  This is getting very close to the monthly low hit last February at $226K.

Observations: 

1) 30 year fixed rate mortgages, with no points, are now at 3.625% an all time low

2) There are currently 549 houses for sale, which represents only an 8.5 month supply

Case Shiller predicts that Flagstaff will be the 5th best performing housing market over the next 5 years. They're projecting annual growth from 2011 thru 2016 of 10.9%

Here is the link to the story

http://www.businessinsider.com/best-housing-markets-next-5-years-2011-7

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