Pam's Prescott Blog

It's another beautiful day here in Prescott, Arizona, though it has been windy as some cold fronts have blown through.  We got teased with some Spring weather and of course, all the trees are considering leafing out and the bulbs are poking their heads up.  Forsythias are already blooming, dotting the roadsides with yellow.

So what's the news? 

1. Now's a great time to buy land if you want to.  Prices have fallen an average of 44% throughout the area with so much to choose from and bargains galore.  Remember, God isn't making more dirt - so if it is a good parcel, and if you believe people will continue to come here and build homes, it could be a good LONG TERM investment.

2. Prescott Valley has been hit hardest of the entire area by foreclosures. They are putting real downward pressure on the markets there, and prices are down 22% over the first quarter of 2008. We are seeing nice, small homes in the $130's to $140's now.  Most of these are foreclosures, but "normal" sellers are having to compete by lowering their prices, too.  Average price: $191,100.  So it is a great time to buy in this area.  My brothers and I bought a rental in Prescott Valley in 2004 for $120,000.  We were feeling pretty smart when it was "worth" $220,000 in 2006.  Looks like most of that has been lost now, but it says something about how far we have corrected.  We are back to 2003 and 2004 prices.  It's a shame things went so high to begin with.  Looks like greed isn't so good, afterall.

3. Prescott and Chino Valley seem not to have been hit as hard by foreclosures.  In fact, Chino Valley has held its value pretty well, only losing 10% of its value over this time last year.  But it is hard to sell in Chino Valley.  Properties are spending more time on the market with sold listings down 27% over this time a year ago.  Average home price: $178,800.

Prescott, has lost about 20% of its value for residential homes, with the average home now costing $293,500.  I attribute this to over-supply and an unrealistic price for homes to begin with in Prescott. Prescott owners have had a hard time coming to grips with lower prices, but they are coming around, with a big dip in prices this last month.  Prescott sales have slowed dramatically by 43% over last year as families and investors have been lured by bargains in Prescott Valley where sales are up 11% over this quarter in 2008.  Still, it is a fabulous time to find a large choice of truly classy homes in Prescott if you can buy in the $300,000 range or higher.  Over time, I think these homes will hold their value well because the topography (pines and boulders) is in limited supply and the city itself is unique. 

Don't hesitate to call me if you want more specifics!