Archive for July, 2008
Home Prices Continue To Adjust
July 30th, 2008 categories: Home Sellers, Prescott Real Estate Trends, Real Estate News
Stumble, skid, slide, falter, this is all we hear about the real estate market. This morning I heard on the news “More Bad News For The Housing Market! Prices in Phoenix continue to slide downward, down 26.5% from May of 2007″.
This market correction had to happen and it’s not a bad thing. Lower home prices will help move us from the problem into the solution.
The real estate market conditions that got us here started in the mid to late 1990s. We had a 10 year run of accelerating sales and appreciating values. Home values in Prescott were up 25%, in some cases the appreciation was a staggering 45%. In 2004 through 2006, the average sale price in Prescott for a single family home was $420,000. These are unsustainable numbers for Prescott, Arizona Real Estate. The average annual income for people who work in Prescott is $34,454.00. Prescott does not have the job market to support an average sales price of $420,000. People who work here should be able to afford a home here.
So when I hear prices are down, who’s to say it’s not a good thing?
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What does it mean when the dewpoint is 55?
July 17th, 2008 categories: Just For Fun
Monsoon season is in full swing. We’ve had some great thunderstorm and even some rain! Phoenix has seen record amounts of rainfall this month, and the dewpoints have been in the 60s… If you watch the Weather Channel, the meteorologists are always mentioning the dewpoint. I did some research to find out exactly what is dewpoint….
All air contains vapor and the dewpoint is a measure of the amount of moisture in the air. The dewpoint of humid air is higher than the dewpoint of dry air. Dewpoint is further defined as the temperature to which the air has to drop in order for the moisture in the air to condense.Historically, when the Phoenix dewpoint reaches 55 degrees for three consecutive days, the likelihood of statewide thunderstorms is good.
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Purchasing REO Properties
July 7th, 2008 categories: Home Buyers, Prescott Real Estate Trends
Are you considering buying a REO or bank owned property? Given the current home buying market, many home buyers see this a wonderful opportunity to buy a home for considerably less than market value. This may be true, but it’s important to know the process and understand the paperwork. If you plan on purchasing a bank owned property, read the fine print. There are some contractual differences compared to the standard A.A.R Real Estate Purchase Contract.
Use your Negotiating Power. If the listing is new on the market, the bank may not be willing to deviate from the list price. Look for REO homes that have been on the market for 30 days or more.
Check fees charged by the Title/Escrow company. Banks negotiate bulk rate contracts with Escrow companies. If you decide to use the banks Title/Escrow company they may charge more in order to make up for the discount they are offering the bank.
Banks do not pay for any extras. Banks generally are not willing to pay transfer fees, delinquent home owners association fees, any property inspections or home warranties. Be prepared to pay for these items out of your pocket.
Verbal Agreements. Most banks like to negotiate verbally before putting anything in writing. Generally, this is the number one rule on not what to do, but the bank hold the cards and sets the rules.
Expect the bank to use their own purchase contract or at the very least addendum’s to standard purchase contracts. Many times these contracts are not in the favor of the buyer. Read through everything thoroughly and if you don’t understand something, consult professional advise.
“As Is”. Most banks sell homes in “as is” condition. Make sure your offer contingent upon inspections, and your approval of those inspections.
Patience is a virtue! Most banks take days if not weeks to respond to offers. Be patient. If your offer is rejected, wait 30 days and re-submit the offer.
Have your loan in order and ready to go. Have a pre-approval letter from your lender ready to submit to the bank. Be certain your lender can close escrow on the pre determined closing date. If you run into delays and need more time to close, the bank may charge you for each late day.
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June 2008 Real Estate Market Update
July 3rd, 2008 categories: Home Sellers, Market Update, Prescott Market Statistics
Prescott Sales Statistics have improved some.
From May to June, the absorption rate for Prescott fell from 28 months of inventory to 24.71. Every little bit helps! Total number of sales for Prescott were up by 8. Again, good news for the month of June. The news was better for the Tri-City area as well. The absorption rate dropped from 27.99 months of inventory to 20.08. Hopefully the number will continue moving in this direction. To compare these charts to May, click here May 08
Prescott Sales Statistics for the month of June, 2008
| Price Range | Residential Properties On The Market | Residential Sales Last Month | Absorption Rate # Of Months It Will Take To Sell |
|---|---|---|---|
| $300,000 and below | 224 | 14 | 16.0 |
| $300,001 to $500,000 | 448 | 26 | 17.23 |
| $500,001 to $800,000 | 339 | 5 | 67.80 |
| $800,0001 to $1,000,000 | 83 | 1 | 83 |
| $1,000,001 & above | 95 | 2 | 47.50 |
| Totals | 1,186 | 48 | 24.71 |
Prescott / Tri City Absorption Rates By Area
See below for area definitions (110 - 150)
| Area | Residential Properties On The Market | Residential Sales Last Month | Absorption Rate # Of Months It Will Take To Sell |
|---|---|---|---|
| 110 | 162 | 7 | 23.14 |
| 120 | 359 | 19 | 18.89 |
| 130 | 161 | 8 | 20.13 |
| 140 | 189 | 6 | 31.50 |
| 150 | 125 | 4 | 31.25 |
| Williamson Valley | 203 | 4 | 50.75 |
| Prescott Valley | 713 | 44 | 9.26 |
| Chino Valley | 306 | 13 | 23.54 |
| Dewey | 102 | 2 | 51 |
| P.C.Club/ Quailwood | 110 | 7 | 15.71 |
| Totals | 2,430 | 121 | 20.08 |
Area 110: North of Gurley/Thumb Butte, West of Willow Ck Rd including Longview
Area 120:North of Gurley, East of Willow Creek Road, West of Hwy 89
Area 130:East on Hwy 69 from Hwy 89 & 69 Junction, East of Hwy 89
Area 140: South of Gurley, East of Park/White Spar, West of the Ranch
Area 150: South of Gurley, East of Park/White Spar
As always, please feel free to contact me with any questions.
Regards,
Sherry Huffman
Realtor-Associate
The Huffman Group, Realty Executives
928-533-1833
928-441-1201 e-fax
sherry@thehuffmangroup.com
www.theHuffmanGroup.com
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Prescott 4th of July Celebration
July 1st, 2008 categories: Just For Fun, Prescott Nights
Happy July Everyone! Summer is officially in full swing and the 4th of July is a just a few days away.
The City of Prescott is hosting it’s annual 4th of July celebration at Pioneer Park. This year, Pioneer Park proudly presents the largest fireworks display in the tri-city area!
Make it a day of it and enjoy the carnival featuring the world’s largest water slide, bungee jumping, climbing walls, pony rides, bumper boats, carnival games and much more. There will also be live entertainment, contests, give-a-ways, a craft tent and food vendors. Bring the entire family and celebrate our nation’s birthday..
The carnival begins at 12:00 noon on Friday, fireworks begin at 9:00 PM
Admission into the park is FREE. Carnival tickets are available at any Fry’s Market, the Prescott Chamber of Commerce or Prescott True Value. Tickets are $12.00 if purchased in advance, or $15.00 at the gate.
Free parking at Embry-Riddle. Free shuttle service to Pioneer Park.
Pioneer Park is located at 1200 Commerce Drive in Prescott.
For more information call (928) 777-1349
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