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?
