As we welcome 2022 and excitedly look towards the future there is knowledge that 2021 represented a year of extraordinary significance in real estate from every standpoint. Although no one has a crystal ball accurate enough to predict where real estate will go during the upcoming year, there are some inklings from our recent historic trends that can help shed some light on the distinct probability of where we are headed. Bring your sunglasses, the future of real estate in Flagstaff looks bright.
Over the past five years we have seen increases in both the average price as well as the median price of a single-family home in Flagstaff. In fact, appreciation percentages over the last two years have been in the double digits with the average price of a single-family home increasing $99,019 or 15% from 2020 to 2021 and the median price has increased $109,169 or 22%. The same detached home increased from an average price of $641,529 to $740,548 in just one year. This means that homeowners have experienced exponential growth in equity. In addition, if we look back just one year further to 2019 the average price of a single-family home increased a whopping $226,658 meaning the average home is now worth 44% more than it was just two years ago.
Based on typical seasonality we expect to see a slight dip in home prices during January and hit our peak sometime during late summer. But these recent times have been anything but typical and based on current demand contrasted with a dwindling supply of only 46 detached homes available for sale, a balanced market would have 400-600 homes available, we could very likely continue to realize more of the same in price appreciation this year. Whether it will maintain in the double digits or not remains to be seen. Regardless, these increases have made it increasingly difficult for first-time homebuyers or families looking to relocate for jobs to purchase a single-family home in our community.
Attached product consisting of condos and townhomes can be a great alternative for these potential homebuyers to enter the real estate market. However, attached homes have also experienced tremendous growth and from 2020 to 2021 with the average price increasing from $357,781 to $420,420 respectively. This is $62,639 or an 18% increase year over year. Looking back to 2019 the same condo or townhouse only cost $312,280 which means there has been a $108,140 or 35% increase over the last two years. Although this is 9% less than the growth in detached homes it still substantial considering salaries have not kept pace with the rise in the cost of housing.
While the aforementioned is encouraging to existing homeowners, it can appear daunting to those seeking to enter the market or move-up into a bigger home in Flagstaff. Nevertheless, do not despair. There is hope if you are looking to make a move. New neighborhoods are in the works in Flagstaff and according to the Community Development Division there are hundreds of homes to be constructed during 2022, a mix of both for sale and for lease product.
If you are interested in more detailed information about these new communities and opportunities for upward mobility that exist for housing in Flagstaff, please join us for our three-part buyer and seller series.
3 – Part Buyer / Seller Educational Series – Join Us!
- Move-up Buyers | Thursday, January 27th at 5pm
- First-time Homebuyers | Thursday, February 17th at 5pm
- Investors & Airbnb | Thursday, March 3rd at 5pm
Text Lori