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