Flagstaff Luxury Home Sales: What to Expect in 2017
Flagstaff homes that have price tags not lower than $500K are considered Flagstaff Luxury Real Estate. In other markets, entry level luxury homes may well be priced above $500K.
The past few years we have had an oversupply of homes in the high-end price range and it looks like this trend is going to continue in 2017. Flagstaff has over 12 months’ supply of properties above $1M and, though not quite as plentiful, the $500- $1M range has more homes than what a buyer can normally choose from. A balanced market has 6 months’ inventory of homes for sale.
In 2016, several high-end homes have remained on the market for longer than usual before being snapped up at more favorable prices.
An example of this is 9200 W Coyote Pass Road Flagstaff, AZ 86001. The 40-acre property featured a massive log home. It was initially offered at $2.7M, went into foreclosure, and eventually sold for $1.6M.
Several home owners and realtors listed homes above market values and 110 luxury properties failed to sell in 2016 based on the data provided by the Northern Arizona MLS. For this reason, prices have not skyrocketed in the upper tier market.
3 Reasons to Buy Luxury Property THIS Year!!!
1. There Are More NEW Homes from Which to Choose
Discover new developments in Flagstaff Ranch and Switzer Canyon. Premier builder Miramonte Homes offer beautiful townhomes close to downtown at Switzer Canyon. In the Flagstaff Ranch golf community, Miramonte and Capstone Homes are building luxury townhomes and condos. Club Cabins, luxury cabin retreats in Pine Canyon, are expected to be completed mid-2017. Construction of new custom specialty homes, luxury townhomes and cabins are also in the pipeline. See ALL New Construction Luxury Homes here.
2. Prices Are Becoming More Reasonable
Per a recent Wall Street Journal article, downward price adjustments have been more common in the luxury market than in markets with lower prices. They went on to say:
The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.
Not only will you have more to choose from, but you may also be able to get the property at a reduced price.
3. Mortgage Rates Are Low
During 2017, it will be easier for buyers to finance their luxury real estate purchases. Beginning this year, government-owned mortgage companies Fannie Mae and Freddie Mac will provide backing for larger mortgages for the first time in more than 10 years.
One of the drawbacks to purchasing a luxury property was the larger mortgage rate on “jumbo” loans which are often required on high end properties. However, jumbo rates are still at record lows despite rising mortgage rates in the past few months.