Flagstaff home prices continue to slide a bit — not enough to loosen up the market.

Unlike in parts of California, where sales of existing homes posted an unexpected increase in December fueled by the sales of bargain-basement foreclosed homes, Flagstaff sales remained low.

According to figures from the Northern Arizona Association of Realtors, there were just 33 sales of single-family homes in the city in December. That's down 25 percent from the same month a year ago and 46 percent from two years ago.

The median price saw a drop in December of 5 percent from a year ago, with single-family homes selling for $335,000.

Stephen Brighton, a Realtor with Century 21 Metro Alliance, said the value of homes in Flagstaff is strong, especially in comparison to the Valley.

RL Brown's The Phoenix Housing Market newsletter reported that existing home sales in the Valley were down by 72 percent in December from a year ago.

Brighton acknowledged the falloff in Flagstaff was nearly as great.

"We are down … 46 percent sales-wise from our peak, which … was 2005," Brighton said.

He also noted that prices have held relatively steady, despite an increase to 25 percent in the proportion of foreclosures and short sales.

"We are selling more and more short sales but also foreclosures," Brighton said.

Jim Snook, a Realtor with Dallas Real Estate, said he has seen his share of short sales as well in northern Arizona. Generally for short sales, the bank has to approve the sale and requires some form of hardship or the loan must be close to defaulting.

Snook said short sales can be complicated by circumstances, such as when the loan has been bundled and sold to groups of investors or when the property has multiple owners. In either example, all parties must agree to the short sale in order to go forward.

He said sometimes it is just easier to let a property go to the foreclosure stage than navigating the red tape and paperwork on a short sale deal.

Deidre Craig, a Realtor with Russ Lyon and the new president of the Northern Arizona Association of Realtors, agrees that some short sales can be very difficult to complete. The seller might agree to the buyer's offer, she said, but some banks can drag their feet.

"I've got one that I am waiting for approval from the bank since October," she said.

Joe Ferguson can be reached at 556-2253 or jferguson@azdailysun.com.

Single-family home sales in Flagstaff

2008 2007 2006

# sales

December /32/44/59

4th qtr /125/159/199

Median price

December /$335K/$352K/$355K

4th qtr /$325K/$362K/$380K

Days on market

December /85/114/91

4th qtr /99/119/92

Source: Northern Arizona Association of Realtors Multiple Listing Service. Figures are not certified as accurate and may not represent all sales.