Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [August 2002]
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How Much Have Home Values Appreciated in Flagstaff?
Last month I wrote about investing in Flagstaff real estate instead of the stock market during these turbulent financial times. As a result of the article I’ve had several inquiries from people asking me if I could in fact show how much property values have increased throughout the years in our area.
With the help of Henry Ortiz at the assessor’s office we came up with data for three average homes in three subdivisions in Flagstaff. Since 1992 these properties in University Heights, Continental Country Club, and Upper Greenlaw have increased in value approximately 6% annually. The values used in the analysis are the Full Cash Values used by the assessor. The Full Cash Value (FCV) used by the assessor is the starting point for determining taxable values. Arizona courts have interpreted the term “full cash value” to mean the “cash equivalent value” of a property. While the county uses this value to determine your tax bill, I have rarely found that the FCV equates to current market conditions.
While this analysis does not cover the entire city I believe that values in most neighborhoods have mirrored these numbers. There are exceptions of course, as some neighborhoods and some homes have done better and some may not have faired as well.
Increases in residential real estate values of 6 percent annually are respectful numbers if you take into consideration your ability to deduct mortgage interest from your income taxes as well as the deprecation on investment properties. The fact that interest rates are hovering around 6.5% at the time of this writing make real estate an attractive investment.
As I mentioned last month the past is no guarantee of the future for real estate values, but owning real property in Flagstaff seems to provide a relatively safe refuge for your investment dollar. How much has your home appreciated? Ask your realtor for a market analysis. You may be pleasantly surprised.
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