Flagstaff AZ Home Prices Plunge

With buyers looking for bargains, median home sale prices in Flagstaff, northern Arizona, continue to fall. "In October, the median price was $328,000, down $58,000 from the same month the year before," according to an article in the Arizona Daily Sun. "But that price remains at least $75,000 more than what a median-income family in Flagstaff can afford." Photo shown is a house for sale at $348,500.

Out of 56 homes sold, said the paper, 33 "were priced below $350,000. In the $350,000 to $500,000 range, houses languish -- there is a 15-month supply, said the newspaper. Flagstaff is home to Northern Arizona University and has been a flourishing second home destination.