August’s Flagstaff Real Estate Market Update 2025
- Nikki Barrese
- Aug 12
- 2 min read
Updated: Aug 13
Hi friends,
It’s hard to believe we’re already in August! The Flagstaff real estate market has shifted quite a bit since the spring, and the numbers are telling a clear story about where things stand right now — and where they might be heading.
So lets dig into Flagstaff's Real Estate market update for August 2025! I'll touch on interest rates, this years stats compared too 2024, and whether you should hold off or jump right in on buying or selling.
Homes Sold & Median Price
In July 2025, 84 homes sold in Flagstaff, compared to 98 sales during the same month last year. Homes are also taking longer to sell, with a median of 49 days on market. The median sale price came in at $685,000, a slight 0.9% increase from July 2024.
Price Reductions Are Back
Roughly 20% of active listings have seen a price reduction in the past 30 days — that’s about 37 of the 187 homes currently for sale. Sellers are becoming more flexible, and buyers are regaining some negotiating power that was rare in the peak frenzy of 2021–2022.
Interest Rates & Economic Outlook
As of August 13th, the average 30-year fixed mortgage rate was 6.599%, slightly down from earlier this summer. The Federal Reserve is watching inflation trends closely, and the latest data has increased the likelihood of a rate cut in September. While the Fed’s target range has remained between 4.25% and 4.5%, expectations are growing that we could see a quarter-point cut soon.
However, any drop in rates could also bring more buyers into the market. More competition often leads to faster sales and higher prices — something to consider if you’ve been waiting on the sidelines.
So, Should you wait???
Why Buying Now & Refinancing Later Can Make Sense
With more inventory and sellers open to negotiations, buyers today have opportunities they might not have if rates fall and the market heats up. Purchasing now, while prices are more flexible, and refinancing later when rates improve could put you in a stronger position long-term.
Bottom line: Inventory is higher, price reductions are happening, and buyers have more breathing room — for now. If you find a home you love, this might be your best chance to secure it without the intense bidding wars we’ve seen in past years.
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