Airbnbs are often at maximum weekend capacity.
The housing market in Flagstaff is “anemically undersupplied,” says Zion Realty’s Lori Anna Harrison; yet, demand is higher than ever. The unprecedented rise in prices has some wondering whether there hope on the horizon for new homebuyers; are there opportunities for sellers who want to trade up but ponder where to move next; and, is this a good time to invest in rental property or space for an Airbnb? Harrison says the answer to all of these questions is “Yes.”
“Lately, there has been an abundance of statistical reporting on the real estate market, yet there are very few solutions provided for those waiting on the sidelines to find and purchase a home,” she said. “While the numbers indicate both increases in price per square foot and average home price, the opportunity to achieve the American Dream of home ownership does still exist. The key components are the education of resources available for current conditions coupled with a successful implementation strategy.”
As rents have increased 25% since last year – the average rent is $2,241 per month, compared to the average rent of $1,799 a year ago – some may be wanting to purchase a home but are struggling with having enough money up front.
“Although it is not well known, there are down payment assistance programs for first-time homebuyers, designed to make it easier for residents at all income levels to purchase a home,” said Harrison. In addition, the Flagstaff City Council recently released a 10-Year Housing Plan focused on increasing the number of available housing options.
Because of employment shifting from in-office to virtual for many since early 2020, families and professionals need larger spaces to accommodate working from home. Some homeowners want to move into a bigger house but feel perplexed about how to accomplish this goal because sellers often do not want to accept a contingent offer. Yet, Harrison says there are viable options available to help, but most are not aware of the possibilities in lending.
For potential investors, real estate agents point out that Flagstaff is a top destination for short-term travelers, noting that there are few places that have beautiful summer weather coupled with great alpine skiing in the winter. “Airbnbs are often at maximum weekend capacity. This provides an incentive for investors to buy, however, many neighborhoods in town do not allow short-term rentals,” said Harrison. “Also, some investors want to sell an existing rental and purchase a four-plex to better facilitate an Airbnb. Learning about local HOA rules and tax benefits of a 1031 exchange can be helpful in making these decisions.”
For those considering purchasing a first home, trading up to a bigger home or looking to invest in real estate in the New Year, Zion Realty, Clear Title Agency of Flagstaff and Academy Mortgage are teaming up to introduce the free three-part Buyer and Seller Educational Series featuring experts who will provide hope as well as expertise and resources to make homebuying goals a reality.
The following topics will be discussed for the three-part Buyer and Seller Educational Series:
Move-up Buyers | 5:30 p.m., Thursday, Jan. 27
First-Time Homebuyers | 5:30 p.m., Thursday, Feb. 17
Investors & Airbnb | 5:30 p.m., Thursday, March 3
To reserve your seat at the Buyer and Seller Educational Series, call 928-396-5851, text 602-524-5674 or email Lori@AZdreamlifestyle.com. The series will be conducted at Clear Title and Academy Mortgage, located 2076 S. Woodlands Village Blvd., Flagstaff, Arizona, 86001. FBN