Home values in Arizona dropped more in the last year than any other state. New figures Tuesday from the Federal Housing Finance Agency show the price for an average Arizona home in the first quarter of this year is .13 percent less than the same time a year age.
What that means is that home values, on average, are now more than 20 percent below where they were at this time in 2005, while prices were going up but before the housing bubble burst.
And there is no real sign that the slide in values is slowing: The index dropped by 3.4 percent just between the last quarter of 2009 and the first quarter of this year.
In Flagstaff, the change in the last quarter was -3.48%, and the difference between the 1st quarter of 2009 and the 1st quarter of 2010 is -13.26%.
But those who have been hanging onto their houses longer term still have something to be happy about: The report shows that, even with the precipitous drop in prices, the average Arizona home is now worth almost double what it was at the beginning of 1991.
The Federal Housing Finance Agency figures are significant because the agency computes its index based on figures from Fannie Mae and Freddie Mac which have the larges database of conventional mortgages going back 34 years.
That allows the agency to track prices on the same home being sold and resold. By contrast, some other indexes are based solely on whatever happens to be sold during that period.
What these figures represent is that it is a great time to buy a home in Flagstaff! Mortgage rates are at a new low, and there is a diverse selection of homes to choose from.
Let the professionals at Flagstaff Top Producers Real Estate assist you in buying or selling your home, and our knowledgable agents can help you maximize your homes’ equity potential.
Thank you for the privilege!
by Howard Fischer, Capitol Media Services.