Flagstaff Market Update – 2011

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As we head into the New Year and anxiously wait to see what 2012 has in store for us – our market performance for 2011 speaks for itself.  Since the mortgage meltdown crisis there has been a lot of trepidation about real estate, with much fear and uncertainty about housing prices and values.  Low interest rates and lots of inventory, however, kept the real estate machine running fairly well and the results are a good amount of homes sold reported for 2011.

Traditional Home Sales Stronger

With all the fears of distressed sales taking over our market, the news that comes from Flagstaff this December is refreshingly uplifting!  After taking a close look at market performance, we are reporting almost 61% of all home sales are equity sales.  Equity sales, or traditional home sale transactions, are those that involve homes where the sellers have equity on the property.

Short Sales, Bank Owned and HUD Properties Slow Down

Unlike equity sales, bank owned and HUD properties are those where the owners defaulted on the home and the bank is in a hurry to get the property sold but it will likely occur at a loss to the bank.  Short sales homes are those where more is owed on the property than what it is worth.  The good news is that in the Flagstaff market in 2011, distressed sales did not dominate the market.  At about 39% market saturation, the signs are strong that distressed properties are winding down.

How the Numbers Break Down

Total number of single-family homes, condominiums and townhomes sold in 2011 is 912.
The number of equity sellers of these sold homes in 2011 is 538 – just under 61% of the market.

Bank owned properties sold in 2011 totaled 249 – approximately 27% of the market.
Short sales sold in 2011 was 107, amounting to about 12% of the market.
The number of HUD homes sold in 2011 was 18, a slim 0.02% of the market share.

Vacant land lots also are moving, with 74 reported sold.
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The bottom line is this:  amidst fears of overshadowing by distressed property sales, traditional home sellers can rest assured that they have as much as 61% chance to successfully sell their property over others.  Though anything can change – we expect the same trends to follow through in 2012.

It is still a great time to buy – and with serious buyers on the market, it’s also a good time to put your property on the market to sell.  As always, if there are ever any questions that come to mind or even if you just want to get an idea of what to expect in the coming months as a seller or buyer – we invite you to come in, call us or send an email.  We’d love to hear from you!