Flagstaff Luxury Market: Buyers Win in December
The Two Faces of Flagstaff’s Real Estate Market
The Flagstaff real estate market has two faces, each distinctly different from the other. Across the country, the real estate market is hot and Flagstaff is no exception with regards to price appreciation, coupled with low inventory pushing median home prices above the reach of first time homebuyers. This scenario is true for lower priced properties.
But things are quite different for the Flagstaff luxury market.
Inventory & Market Conditions
There is an oversupply of Flagstaff luxury homes, clearly defined as homes priced over 500K. It’s a buyers market. If you are purchasing a home in the 1M- 1.1M price range, there is 4 times the normal inventory at 24 months (Nov 6 data). This means that: starting today, if nobody put their home on the market, all these homes in the 1-1.1M price range will take 24 months to sell. It’s truly the perfect time to buy the Flagstaff luxury home you have always desired. There are plenty of choices and downward price adjustments are common in the luxury market. Impatient, motivated sellers that do not want to sit through winter, sellers who may have drastically overpriced their homes just to “see what they could get” and those that simply entered the market at a price above what the market will bear will have reduced their selling price.
Advice to The Luxury Real Estate Homebuyer
Flagstaff Luxury buyers, take advantage of more choices and better prices! The typical 30-year fixed-rate jumbo spiked 5 basis points to 4.14 percent. Mortgage rates on jumbo loans, a loan that is at least $650,000 (which are often required on high-end properties), may have gone up within the past few weeks but rates are STILL at historic lows.
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