Prescott Real Estate; a year in review
February 19th, 2008 categories: Home Buyers, Home Sellers, Prescott Homeowners, Prescott Real Estate Trends, Real Estate News
2007 Prescott Real Estate. A year in review:
Wow! What a transition… To say that Prescott experienced some major Real Estate adjustments in 2007 is an understatement. We enjoyed double digit appreciation for several years, and came to expect it as normal. Although the trend started to slow toward the end of 05, many home sellers, and Realtors didn’t start to feel the burn until 07. In 2007, average home prices adjusted downward in almost all neighborhoods. Days on market adjusted upward along with interest rates. The interest rate increases kept many first time home buyers out of the market all together, or afraid to take the plunge. Buyers looking to up size could no longer afford the larger home and were forced to stay put.
A large listing inventory, and fewer buyers made 07 an especially challenging year for home sellers. 50% of the listing inventory sold, which was down from 79% in previous years. Only 13% of the vacant land on the market sold. Days on market widened to 158 days which was quite a switch from the ” good old days” when homes sold before they hit the MLS. Not to mention the foreclosure market and sub prime lending disaster which we may not see the bottom of until 2009.
2007 brought many changes to our local Real Estate companies. There was simply not enough business to support the growing number of Licensed Realtors in the area. Currently there are 1,643 Licensed Real Estate agents belonging to PAAR (Prescott Area Association of Realtors) that number is down from well over 1,700 in 2005. I predict that in 2008-2009 more of our local Realtors will be forced to leave the Real Estate business. Mortgage companies and well as Escrow companies have seen their share of cut backs, consolidations and lay offs.
Eventhough lost sleep and my graying hair was a big part of 2007, I am always the optimist and hope that 2008 brings sunnier condition to our Prescott Real Estate market. The sooner we all accept “what is” in the Real Estate market, the brighter the sun will shine for all of us. Here’s to a great 2008!
Here are some sales statistics comparing 2006 to 2007.
