Flagstaff Enjoys Seller's Market Due To Strategic Location
by Blanche Evans
North of Phoenix, and south of the Grand Canyon, college town Flagstaff, Arizona is well situated near mountain ski areas, say local Realtors. "Flagstaff boasts the University of Arizona," says Realtor Marilyn Fitzpatrick, "fantastic ski areas, and it is a quaint village with friendly people." She advises, "Take a trip to Flagstaff on Interstate 17. If you love the change of seasons and enjoy snow-capped mountains up close, this area of Arizona can deliver it all. Development of communities and business are spreading in all directions. A one and half hour trip from Phoenix is a combination of history, fantastic scenery and promise for anyone with the desire for horse property, business development, farms, golf communities and retirement homes. It is so close to the metro area and yet far from the congestion with the convenience of several major highways. Nearby Sedona is another town not to be missed." Says Realtor Ann Heitland, "The number on homes on the market increased hardly at all during the month of May. As of June 6, there were only 447 units actively listed for sale on the multiple listing service for Flagstaff and Bellemonte. On April 3, there were 383 units were for sale while by May 4, 426 units were for sale. The current number of 447 is an incredibly small number of homes for sale relative to the number of buyers who would like to live or have a second home in Flagstaff. Notably, even if you count homes under construction in the areas that are not listed in the MLS, and consider For-Sale-By-Owners in the newspaper, the number is much lower than the demand at this time of year." Heitland advises, "Looking at the fact that 126 homes sold in the month of May, as reported on MLS, the current inventory leaves us with less that four months of available homes, making this a very hot seller's market. The average closed sale price of a three bedroom home jumped in May to $239,656. This includes townhomes, condos, manufactured homes as well as single family residences. The number of homes available for sale is even smaller - only 277 of the 477 were listed without any contract pending. Most of the homes with contracts pending but still showing to buyers will end up selling to the buyer who has a pending contract on the home after the contingencies of inspections and loan approvals are completed. "Narrowing the results to single family home sales alone," she continues, "the median sold price was $239,450 and the average $277,780. Ninety two of the 126 homes sold in April were single family residences, twenty-eight were condominiums or townhomes, and remaining sixteen were manufactured homes. The condominiums ranged from a one bedroom, 622 sq. ft. unit at $102,000 to a three bedroom, two and a half bath 2543 sq. ft. unit that sold for $298,000." "In-town residences of any type under $250,000 often had multiple offers at list price, or above, within 24 hours of listing. Two new subdivisions will be coming onto the market later this year should ease the crunch for townhome and condo buyers, but that relief won't be with us until into the Fall. "Prices skyrocketed in Flagstaff in 2003, fueled by continued historically low interest rates, new loan programs for buyers with less than 20 percent down payments, and the continued attraction of Flagstaff's moderate climate and relatively uncongested life-style. The Pine Canyon golf community between Lake Mary Rd. and Lone Tree Rd. began to "take-off" and the Ponderosa Trails subdivision sold-out its available inventory and began to build roads for new phases. The Bellemont homes west of Flagstaff became a new attraction, and more homes, including townhomes, are planned there for 2004. Townhomes at the front of the University Heights subdivision and in Boulder Pointe sold out. Prices for homes in the "suburbs" caught up to prices in Flagstaff. Land prices - for the little land that can be bought - have increased in unpredictable fashion. "Later in 2004," predicts Heitland, "we will see more building in Ponderosa Trails, in a new subdivision at the end of Slayton Ranch Road northeast of town, the Presidio development west of Boulder Pointe, and development of Canyon del Rio. There is also a possibility of a residential development in the old West Branch campground on the east side of town. Canyon del Rio is to be developed in the former State Trust Land area south of Butler Avenue in the area of the animal shelter (Section 24). There are areas planned for businesses, single family residences, townhomes, and "cluster homes." Cluster homes are detached homes built around a common courtyard - a sort of variation on the cul-de-sac. Canyon del Rio is to be developed by Cachet Homes, a builder from the Phoenix area that heretofore has built only a few townhomes in the Flagstaff Ranch Golf Resort area." |
