86040
Flagstaff, Arizona
Flagstaff 86040 is accelerating.
The 86040 ZIP code in Flagstaff, Arizona has a median sale price of $650K, up +282.4% year-over-year. Homes spend an average of 80 days on market, with 100% of homes selling above list price.
Folio's PropIQ™ score of 90 signals Strong Buy conditions. Strong momentum and fast absorption suggest continued appreciation in Flagstaff.
# Market Report: ZIP 86040, Flagstaff, AZ
The 86040 market has experienced extreme price acceleration, with the median sale price reaching $650,000 following a 282.4% year-over-year increase as of February 2026. Every home sold traded above its list price, indicating severe supply constraints and aggressive buyer competition. At 80 days on market, transaction velocity remains moderate despite the price surge, suggesting buyers require extended due diligence periods to justify the unprecedented valuation jump.
This environment heavily favors existing homeowners looking to liquidate at peak valuations, particularly those who purchased before the 282% surge began. Cash buyers and investors with strong conviction in continued appreciation can capitalize on the 90 PropIQ score, but must accept zero negotiating leverage given the 100% above-ask close rate. Traditional buyers relying on appraisals face significant challenges, as comps lag the rapid price movement by several months.
The 90 PropIQ rating signals continued strength, but the 282% annual gain represents an unsustainable pace that typically precedes consolidation or correction. Critical monitoring points include days-on-market trending above 100, any decline in above-list sales below 80%, and inventory additions that would pressure the current seller's market. The magnitude of recent appreciation suggests mean reversion risk within 12-18 months absent fundamental demand drivers justifying current valuations.
What is the median home price in 86040 Flagstaff?
The median sale price in 86040 is $650K, up +282.4% year-over-year as of 2026-02-28.
How long do homes stay on the market in Flagstaff 86040?
Homes in 86040 Flagstaff spend an average of 80 days on market before going under contract.
Is Flagstaff 86040 a good place to invest in real estate?
Folio's PropIQ™ score for 86040 is 90/100 — a Strong Buy signal. 100% of homes sold above asking.
What does a PropIQ™ score of 90 mean for 86040?
PropIQ™ is Folio's proprietary market score combining price momentum, days-on-market velocity, inventory absorption, and investment signals into a 0–100 number. Score of 90 = Strong Buy in 86040 Flagstaff, Arizona.