NEW CONSTRUCTION IN FLAGSTAFF INCREASES

It’s been years since Flagstaff has seen any appreciable increase in new construction. When the market sank, most Flagstaff builders either quit building or went belly up as it became cheaper to buy resale versus the cost to build. While resale homes are still less expensive versus building new, in general, new construction is gaining momentum as the cost to build is becoming competitive with resale. A quick glance at the numbers reveals the following:
Average price per square foot for an existing single family home in the city of Flagstaff as of March 4, 2012: $165.41 psf.
Average price per square foot for a newly constructed single family home in the city of Flagstaff as of March 4, 2012: $170.60 psf.

As you can see, the cost of building new is only 3% higher as compared with resale. Does it make sense to build new? If you feel that a new home may be in the cards for you, consider the following factors:
1. The time is takes to build new which is an average of four months.
2. New construction usually means a base priced home to which you will have to add the cost of landscaping, window coverings, upgrades, lot premium, all of which you can find in a nice resale home without having to pay for it. Often these additional costs will add up to thousands of dollars.

In sum, does new construction make sense? Probably not from a financial standpoint, but it does it you just can’t find what you like in the resale market or if you just WANT new. Many people just like the thought of a new home which has never been lived in with colors of his/her choice etc. If that scenario fits your description, go for it. If you have additional questions, would like a list of all newly constructed homes for sale, or help finding your dream home, give me a call. I know the market well and offer hassle free services. Thanks for reading. As always, your comments are welcome.

UNIVERSITY STUDY SAYS NOW IS THE TIME TO BUY

What do you think? Can you buy for less than you can rent? Read this article and share your thoughts with us: http://bit.ly/zJJlfM

WHAT’S UP WITH TOWNHOMES IN FLAGSTAFF ARIZONA?

In the market for a nice townhome in Flagstaff AZ? Yesterday, a potential buyer that I showed townhomes to was surprised, almost in disbelief, when I told him that currently there is a total of 38 townhomes available for sale in the entire city of Flagstaff. Included in the 38 homes is the good, bad, and ugly so to speak. This particular individual wanted a mid-priced range 3 bedroom townhome in a good area-something in the range of $200-$250,000 with a garage and decent location. When the client and I sat down in front of the computer and viewed the choices, there were only 8 townhomes in the whole city worth consideration. Fortunately, for this individual he found one to his liking. Why do I mention this story? I mention it as frequently, potential buyers are somewhat shocked to find out that Flagstaff doesn’t have thousands of homes available for sale. As I tell them, Flagstaff is a small city. A big city like Phoenix AZ sells more homes in one month than Flagstaff does in a year. With a small city comes limited inventory and limited options but a lifestyle beyond compare.

FLAGSTAFF’S 2012 RELOCATION GUIDE

Destination Flagstaff,” the 2011-2012 visitor and relocation guide to Flagstaff has been published. This official Flagstaff Chamber of Commerce guide gives you the low-down on all things Flagstaff – from business and education to arts and leisure. Check it out online at http://www.villageprofile.com/arizona/flagstaff/.

DEW DOWNTOWN FLAGSTAFF COMING SOON

Who has heard of this new awesome event called Dew Downtown Flagstaff? Feb 11-12 (in time for V-Day!) http://ht.ly/8NnEB

NEW GOVERNMENT PROGRAM ALLOWING INVESTORS TO BUY FORECLOSURES IN BULK

A new government pilot program may be coming which allows investors to buy foreclosures in bulk and turn them into rentals. Will this help the markets? Please share your thoughts. http://bit.ly/rFxF6W

2012 PREDICTIONS FOR THE FLAGSTAFF REAL ESTATE MARKET

1. 2012 will be the start of the housing recovery: Flagstaff real estate numbers for the last quarter or so have shown positive results with non-distressed homes selling far better than distressed homes. Buyers are out there looking for good homes to buy. I have been seeing buyers in record numbers for this time of year.
2. Banks will start lending again: And not just to people with good credit. After 5 years of foreclosures and short sales, banks will strategize that there are millions of Americans with jobs, good income and, except for that that upside down mortgage, an otherwise good credit history. There will be reform in the banking industry that will affect who and how banks lend that will include those that experienced a foreclosure or a short sale.
3. Flagstaff homes will see positive price increases in 2012: Many of our neighborhoods are already experiencing modest increases in pricing. There will still be some price declines where lower end homes in poor condition are on the market via REO agents.
4. Land will heat up: Land sales have been dead for years as the cost to buy land and build is too high compared to the choices offered in the resale market. As the economy improves buyers desiring a new home will be forced to buy land and build. Land prices won’t go up much but land/lot inventory will start to turn.
5. The overall economy will improve: Much of the woes in the housing market have to do with consumer confidence. The increase in activity we are experiencing is being buoyed along by stronger than usual consumer confidence in the overall marketplace. Gas and oil prices are stable. Unemployment figures are improving. The stock market is becoming more predictable and overseas markets seem to have stabilized as well. These are all factors that make people feel better about the overall economy and will cause them to spend again. Need more evidence? Holiday Sales for 2011 were up 16% over last year. Americans are tired of feeling poor.
6. Baby Boomers will buy real estate again: Pre-boom, (pardon the pun) the Baby Boomers were going to retire earlier, richer and look to buy lots and lots of real estate. The housing crash and poor economy delayed the onslaught, but they are still out there. Maybe not as rich, maybe not as young, but still there.
7. Interest rates will remain exceptionally low: It’s an election year. Interest rates of every variety will be stable throughout 2012. But, they have do have to go up eventually. Buyers need to take advantage of these historically low rates soon.