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Prescott, AZ Real Estate Market Trends
There are some advantages that come with investing in real estate in the so called small towns, the beauty and atmosphere of these places is alluring, there is safety, friendly communities and above all the prices are pocket friendly compared to chocking big cities environment.
Prescott is one of the places that rewards both the sellers and buyers, the town is unrivalled in terms of vibrancy, even in a situation where the market prices are plummeting, and houses are being bought and sold on a daily basis in this real estate paradise. Arizona as a state has doubled its population over the last two decades and continued growth is anticipated even for the next several decades, this means that the market will continue to be vibrant many years to come making it an ideal destination for those who would like to buy or sell properties. Prescott’s mild climate will continue attracting more people, increasing the demand for properties.
Currently the average home value in Prescott Arizona and surrounding areas is $164,393; this is a figure which is thirty seven percent lower than the average price at which the properties are sold- $ 260,160. Comparing with the Arizona average home value which stands at $225,000, Prescott and surrounding areas real market values are lower than the state average but surprisingly when it comes to sale prices, the homeowners in Prescott are reaping big profits as the average price stands at $260,610, this is $100,000 more than the valued price. Going down to value price per square foot, Prescott stands at $70, while the average sale price per square foot for this market stands at $124. This tells us that the market is currently favoring buyers. With the projected future population trends and economic boom in the state and the whole of America in general, the trend is expected to continue.
The Absorption rate
Absorption rate is a parameter that is used by the market to classify a real estate market; it normally refers to the number of months it takes for a property to sell at the prevailing rates. An absorption rate of less than four months is classified as sellers market; here the homes sell at high rate as the demand is high. When the absorption rate is between four to nine months is considered a balance market as there is neither a sellers nor a buyers market. A rate of nine months and above means that the homes are selling at a slower rate giving the buyers an advantage as the demand has plummeted. Properties which are highly priced are known to have a higher absorption rate compared to the average priced. Prescott real estate market just like many areas in United States has recorded cyclical movement in terms of absorption rate. Currently the sale prices are higher than the average value, this means that the buyers are willing to pay more than, recording a producer’s surplus. Give that the demand for real estate is projected to rise especially in small towns, the absorption rate will fall, a situation which is described as a sellers market. It does not mean that the buyers will not benefit from the situation; they are bound to get properties which meet their needs and high in terms of quality as developers aim at giving the best in the market. Buyers and sellers can use the absorption rates to tell when to sell or buy their Prescott real estate. When the market is a seller market, those who are looking to sell can take advantage and get a good price for their properties while buyers would gain more when the demand is low.
The Kathleen Yamauchi Group Real Estate has in depth knowledge of the Prescott Arizona real estate industry. With a common goal: We will make your real estate transaction a smooth and pleasant experience, we draw from our specific strengths and unique real estate training to provide our clients with services and results that you will not get from a single real estate agent, or simple real estate partnership. Contact us today to learn more!