Comparing Real Estate Market
According to recently published statistics from the Prescott Area Association of Realtors, the area real estate market remained reasonably strong in August of 2022 versus August of 2021 but there are signs of weakness.
For the entire market area, the sold median price versus a year ago is up7.4% from $437,500 to $470,000. The median days on the market went up from 11 in August of 2021 to 33 in August of 2022. By most measures, that would still qualify as a Sellers’ market, but the trend does seem to be heading to a more balanced market. However, for the same period, total sales went down from 436 to 321, a negative 26.4%.
Prescott’s total sales went down from 193 in August of 2021 to 145 in August of 2022, a 24.9% decline and the median sold price went down 9.3% from $600,000 in August of 2021 to $544,000 in August of 2022.
Prescott Valley had similar results with a reduction in total sales of 31.5%, down from 111 in August of 2021 to 76 in 2022. However, the median price increased from $405,000 to $433,250 for the same period.
Chino Valley experienced what is probably the biggest drop across the board year over year. Total sales dropped from 62 in August of 2021 to 30 in August of 2022, a whopping 51.6% reduction. At the same time, the median price went down from $388,000 to $365,000 for the same period which is a reduction of 5.9%.
The Dewey- Humbolt area seems to have fared better during this same period with total sales increasing from 29 in August of 2021 to 36 in August of 2022, an increase of 24.1% countering the trend in the rest of the market area. The median price also increased from $415,000 to $446,250 for the same period showing strength in price appreciation of 7.5% which is market leading performance.
Although days on market for the entire market area has increased about 200% from 11 to 33 days in August of 2022 over August of 2021, this statistic would still be considered a Seller’s market.
Is it still a good time to sell? I would say yes because prices have held fairly well, and days on market is still fairly low. Is it a good time to buy? I would say yes because prices have abated somewhat, and interest rates are still relatively low, but they could go much higher before the economic turmoil we are experiencing now is over. Also, the total inventory of homes is up about double for the market area compared to a year ago which makes the possibility of finding the right home much higher.
Nick Malouff is the CEO and co-owner of Better Homes and Gardens Real Estate BloomTree Realty with offices in Prescott, Prescott Valley, and Cottonwood . To reach Nick or a highly qualified agent, please call 928-925-2023