Prescott Real Estate- 2009 Housing Market Predictions
January 5th, 2009 categories: Real Estate News
In 2008, the Prescott Real Estate market saw prices fall and bank owned properties rise. Will 2009 bring brighter times to the Prescott Real Estate market? Only time will tell….. here’s my two cents on the situation.
Prices will continue to adjust downward, but not as dramatically as the last two years. This is due to the number of bank owned properties on the market. Banks will continue to slash prices in order sell off the large inventory of homes. Short sale options coupled with banks becoming more solution oriented will ultimately lead to a decrease in bank owned properties.
2009 will be a great year to buy a home. If you plan on buying and keeping a home for at least 4 to 5 years, then this is the time. Prices and interest rates are historically low. The selection of homes on the market is huge, and most sellers are motivated. If you have good credit and money down, this may be the investment opportunity of a lifetime. Remember, you make money when you buy, not when you sell.
Interest rates will stay below 6%. Available funds will be key to our economic recovery and until the economy really starts to turn around, I don’t see the Feds doing much with interest rates.
Residental Home Sales. Over the past few months, sales have increased slightly and the listing inventory has declined slightly. Due to the movement of those numbers, I anticipate that closed sales figures will be similar to this 2008.
Vacant land sales will continue to decline into 2010 or longer. We currently have 13 years of vacant land inventory in Prescott and unless Sellers are willing to seriously reduce the price, their land probably won’t sell.
More and more Real Estate Agents will leave the business.
The number of Licensed Real Estate Agents in Prescott is down 50% from 2005. I predict we will lose another 100 agents by the end of the first quarter.
Interesting post. I think your right about Agents leaving the business, they have in our area as well. Good luck this year.
Tom Dobie
Colorado Springs