It finally had to happen.

Housing prices in the Flagstaff region have declined — if only by a fraction.

New figures Thursday from the federal Office of Housing Enterprise Oversight show that home values in the Flagstaff region dropped 0.55 percent in the second quarter of this year compared to the prior quarter.

Statewide, housing prices also waded into the red last quarter — the first time that’s happened in 16 years. 
The last time the state dipped into negative numbers was in 1991.

And the normally booming Arizona housing market is so cold that prices could not even keep pace with the national average, which actually went up a tenth of a percent in the same period. And that figure was the smallest hike since 1994.

In Flagstaff, the slight dip in home prices reflects the national market: sellers are outnumbering buyers.

Ann Heitland, a Realtor with RE/MAX Peak Properties, said sellers are pricing their homes accordingly, trying to be competitive and attract buyers.

“Sellers are trying to adjust to the oversupply in the market compared to the number of buyers,” said Heitland.

Put in real dollars, that statewide average decline means a home that was valued at $200,000 three months earlier now is worth $580 less.

azdailysun.com