Pam's Prescott Blog

Prescott's Real Estate Market

If you are looking to buy a home in today's Prescott, Arizona market, you know that there are a lot of homes out there for sale.  But if you are really ready to make an offer, you also might have noticed that the competition for those homes IS increasing.  Great homes at great prices are practically flying off the shelves. 

Here is the proof.  In the Prescott area, including Prescott Valley, Chino Valley and Dewey/Humboldt, the average sales price in March was $188,562; in April it was $198,661; and in May it was $214,569.  Now, it still isn't anything near what it was even last year in each of these months, when the average sales price was $250,000 and above.  But it's interesting to note the improvement.  There are still some very low prices, but homes in the higher ranges are moving now, too, so the market overall is becoming healthier.

For example, the Average Days on Market is down 1.75% over last year.  Homes aren't sitting quite as long.

The ratios of homes listed vs. homes sold is improving, too.  The Year to Date Sold to List ratio for 2009 is 27%.  Compare that to 25% for last year at this time.  So, the supply has gone down by 2% over last year.

What does this mean for Buyers? 

This Spring was quite possibly the bottom for the Prescott area real estate market, so if you've been waiting on bottom, the statistics show that you probably missed it.  Prices are still very low, but great deals will be a little harder to find from here on out.  My advice?  Rates are still low.  If you can get moving, and if other conditions are favorable for you, do it!

What does it mean for Sellers? 

First of all, things are slowly improving.  But please, Sellers must understand that they may not recoup their lost equity for ten years!  Sellers who are selling quickly are those who understand that foreclosures and short sales have become the market.  They ARE the competition and they are not all DOGS, believe me!  Some of them are pristine, gorgeous homes.  Realistic sellers are pricing their homes where others have sold or very slightly above and they ARE getting results!  They are able to cut their losses and move on to take advantage of low prices on the buying end.  They will buy low and make their money back on another house. 

Which brings up the next point:  Sellers must understand that value is relative.  They may sell for less, but they will buy for less, too.  It's hard to lose equity, but many times, that equity was imaginary to begin with.  On the other hand, if you owe more than you can sell for, and if you can afford your current payment, stay in your home and wait for prices to begin inching up.  Keep your home nice, update when you can, and wait until a more favorable time.

Lastly, Sellers must keep appraisal in mind.  If a Buyer happens to come along who will pay above market for their home, what will happen when the appraisal comes in below that?  We are seeing this happen!

So, good news for real estate in general.  Sellers: properties are selling when they are priced right.  Buyers: properties are selling when they are priced right.  Everyone - prices are starting to climb.  Whew!

Look for the blog about the June, July, August market in the fall and we'll see if I was right!