Prescott & WV Real Estate Market (Phoenix, Prescott Valley: for sale, foreclosures, homes)

[LBear]

This market is REALLY slow. Driving through Williamson Valley, all one sees is tons of FOR SALE signs. It appears that vacant land for sale is plentiful. This is a HUGE change since 2005. You couldn't keep something on the market long enough before you had numerous offers.

Any comments on when it will change?

[Gretchen B]

IMO, we're probably not going to see much of an improvement at least through fall 2008 - there's just too much inventory that will have to sell before the market balances.

However, even now, if a nice home in a nice location is priced aggressively, it will sell and will sell rather quickly. I'm currently representing buyers where there are multiple offers in on the property (which has currently been on the market less than a week). That's really rare, though, and the price on this property is rock bottom. I have seen a few homes sell within a month if they're a great home at a reasonable price.

Land is a little tougher - we're at an all-time high for land listings, but I'm not seeing much of a price decrease, generally speaking. And as a result not much is selling in the way of land.

[LBear]

Gretchen -

How are land sales in Williamson Valley doing?

To me, Williamson Valley is the "final frontier" for Prescott living. It embodies what Prescott is, the pine trees and rolling hills with mountain views. Yet, it still retains the open space between homes. As most homes have 2+ acres between them. Some areas have as much as 8 acre minimums.

[Gretchen B]

Originally Posted by Pettrix

Gretchen -

How are land sales in Williamson Valley doing?

To me, Williamson Valley is the "final frontier" for Prescott living. It embodies what Prescott is, the pine trees and rolling hills with mountain views. Yet, it still retains the open space between homes. As most homes have 2+ acres between them. Some areas have as much as 8 acre minimums.

Pettrix - since July 1st of this year - 19 parcels out Wmsn Valley have sold. That compares with 107 parcels sold during the same time period in 2005. Definitely a downturn in sales . . .

What's interesting is that of those 19 sales, 15 were located in one of the gated communities or in Inscription Canyon.

Right now there's 469 parcels (1-acre or larger) for sale out Wmsn Vly area, ranging in price from a low of $75,000 for a 2-1/2 acre parcel to a high of $2.5m for a 43-acre parcel. Probably the majority priced between $200k and $400k.

[LBear]

Gretchen -

How bad are the foreclosures in WV?

I know Phoenix is getting destroyed with foreclosures. That will surely drop the property values for other people's homes in the high-foreclosure areas.

[Gretchen B]

Originally Posted by Pettrix

Gretchen -

How bad are the foreclosures in WV?

I know Phoenix is getting destroyed with foreclosures. That will surely drop the property values for other people's homes in the high-foreclosure areas.

I'm seeing a few short sales and bank-owned properties for sale in the general Prescott/PV/CV area. So far, though, not impacting our market significantly. I've also been hearing about the high foreclosure rate in Phx and the precarious solvency of some of the builders there.

The Phoenix market, as well as the SoCal market, have a big impact on our housing market here in Prescott, in a kind of trickle-down effect. Those areas have typically been where a majority of people in the Prescott area have relocated from. So right now, there's a lot of people in those areas that would like to relocate here, but they're having trouble getting their homes sold where they're at.

Also, because Prescott has not tanked like some of these other areas, the tables have kind of turned. Used to be Prescott prices were quite a bit lower than Phoenix. Now it's starting to be the other way around. Prescott Valley remains much more affordable than Prescott.

Personally, I expect to see significant price reductions on land in this next year. Either that, or some sellers will simply take their land listings off the market and wait for better times.

[Ria Rhodes]

In my opinion traffic/growth has greatly reduced the desirability of the Prescott/PV area the past ten years. I suspect this will continue mostly unabated so enjoy "the good old days" you have now.

Always keep in mind: real estate people make a living emphasizing the half full glass, even when it may not be.
It's not good or bad, just a fact.

Btw,

It's under reported, but the Verde Valley has become an area with many foreclosures.

[Gretchen B]

Originally Posted by Ria Rhodes

In my opinion traffic/growth has greatly reduced the desirability of the Prescott/PV area the past ten years. I suspect this will continue mostly unabated so enjoy "the good old days" you have now.
Always keep in mind: real estate people make a living emphasizing the half full glass, even when it may not be.
It's not good or bad, just a fact.

Btw,

It's under reported, but the Verde Valley has become an area with many foreclosures.

In my "glass is half full" opinion , I think the trend in Prescott proper may be toward more restrained growth. The new council members were all elected on "limited growth" platforms. Also the housing slowdown has actually put the brakes on growth, too. . . . Now if they could get the roads widened in the meantime, that would help with traffic issues. (On a side note, we took a trip to Branson, MO earlier this month - you want traffic snarls? Try Branson. I quit complaining about Prescott traffic after that trip!)

Prescott Valley remains very pro growth, and I definitely expect that trend to continue there.