Inventory Up, Along with Expectations

Navigating the housing market in Flagstaff, the Verde Valley and Prescott.

A surge in available listings across Flagstaff, the Verde Valley and Prescott is reshaping the residential real estate conversation in Northern Arizona. While home prices remain relatively stable, the increased inventory is creating opportunities for buyers – and new challenges for sellers – in a market long known for its limited supply.

Flagstaff is usually a seller’s market, but this year it is getting closer to a balanced market, said Gary Nelson, managing broker of Realty Executives of Northern Arizona and former president of the State Association of Realtors. With inventory up, buyers have more choices now than they’ve had for the last five years.

“The last time we’ve had these numbers was 2019. We’ve seen inventory increase over the past few months, and we are up 21% month over month. There’s a lot more on the market than even a year ago.”

That means sellers need to price their homes right. Overpricing a home in this environment can lead to it becoming stale, which often results in price drops, longer days on the market and less negotiating power.

Nelson predicts prices will remain flat much of the year, with a potential for a slight increase by the end of the year. And while interest rates tend to affect buying power, Nelson says it’s hard to predict what interest rates will do over the next few months given the current economic and political climate.

Chris Hallows, senior loan officer and branch manager at Benchmark Mortgage, agreed. “We’re hoping the 90 days pause on tariffs will play into the market, but some real estate investors are feeling fearful and concerned right now.”

One caveat is the luxury market. Hallows is surprised at how hot that market is in Flagstaff right now, saying it is moving fast and 80%-90% of transactions are cash.

Sellers and buyers in Prescott and the Verde Valley are in unique situations as well.

In Prescott Valley, single-family home listings are up 20% year over year, explained Kayla Stazenski, realtor and president of the Prescott Area Association of Realtors.

“Naturally, you would see as inventory and days on market go up, it would push toward a buyer’s market, but it’s almost like buyers are not jumping in with both feet because they have a lot to look at,” said Carissa Maxwell, designated broker of Glow Realty in the Quad Cities and Verde Valley.   

With more homes on the market, buyers have the time to be choosier, and sellers need to be willing to make concessions, she added. Some sellers are offering concessions like closing cost assistance, interest rate buydowns, or even home warranties – things that were rarely necessary during the peak of the seller’s market.

Maxwell predicts in the next three months appraisals are going to start coming in lower because there isn’t support for inflated prices. She believes people are going to start evaluating what their next move will be – many will take their house off the market, and those who need to move will move.

While this abundance of available homes is in the $400,000-$550,000 range, Stazenski said starter homes, those in the $300,000-400,000 range, are the fastest moving properties right now, with some seeing multiple offers. On the other end of the spectrum, like Flagstaff, the luxury market in Prescott is different. There is demand, but not a lot of luxury homes available. For this market, people are looking in developments like Stringfield, Prescott Lakes, Solstice Ridge and Talking Rock.

But some areas in Northern Arizona are still seeing large growth.

“Out of our whole Yavapai area, Chino Valley is growing the fastest right now,” said Stazenski.

If you’re faced with a move, Stazenski recommends finding a local agent who lives in the market and educating yourself on the market so you can set reasonable expectations.

Nelson agrees. “Find a very good real estate professional and trust their advice, because you will need them.”

As Northern Arizona’s residential real estate market continues to evolve, buyers and sellers are navigating a landscape far different from the frenzied years of the pandemic-era boom. With inventory levels rising and market dynamics shifting, local expertise is more valuable than ever. Whether you’re looking to buy, sell or invest in Flagstaff, Prescott or the Verde Valley, the experts say staying informed – and adaptable – will be key in the months ahead. FBN

By Mary Marini, FBN

Courtesy Photo: As inventory rises across Northern and Central Arizona, high-end homes in exclusive communities remain in demand, even as the broader market shifts toward balance.