January Housing Prices Remain Flat, Sales Tank

January housing prices for the greater Flagstaff area remained flat year-over-year, with the median sales price coming in at $390K. January housing sales on the other hand, plunged! There were only 37 houses sold which is down 48% from a year ago when there were 71 sales. Part of the decline is due to the Government shutdown which delayed IRS income verifications, holding up mortgage approvals and delaying closings. However, that’s not the whole story because housing sales have declined for six of the last seven months. Mortgage rates, after hitting a seven-year high last September, have continued to drop and over the last month dropped yet another 1/8th of a point with a 30-year fixed rate mortgage now at 4.125% with no points. Inventory levels remain light which is normal for this time of year. Currently there are 33 houses available in the $350K to $399,999 range and 32 houses available to purchase in the $400K to $450K range. Until next month here for any & all of your real estate needs.