Is it really a bad time to sell in Prescott? (Phoenix: for sale, real estate)

[ckdaajd]

We are wanting to relocate to another state and I'm wondering if we should consider putting up the 4 Sale sign on our home in Prescott after the first of the year or just wait it out til later. Just wondering what everyone thinks.

[Gretchen B]

Originally Posted by ckdaajd

We are wanting to relocate to another state and I'm wondering if we should consider putting up the 4 Sale sign on our home in Prescott after the first of the year or just wait it out til later. Just wondering what everyone thinks.

Unfortunately it's not the best of times here in Prescott for sellers. There are currently over 3,200 active residential listings on our MLS, and sales are running about 150 to 200 per month, about 4-5 buyers for every 100 homes. (This takes in the tri-city area and outlying areas, and includes site-built as well as mfg'd homes.) Sales in just Prescott proper are running about 50-75/month. Stats show that sales are down about 40% over last year.

The problem for sellers right now is that prices have been on a slow but steady decline. This presents a problem with waiting, because the price you'll get the longer you wait is probably going to be lower than what you'll get right now. However a quick sale means pricing aggressively at the outset, and that's usually a hard pill to swallow. We've got a ton of homes for sale right now that have been on the market 9 months or longer. Many started out high with their price and are chasing the market downward, but still aren't able to get a contract.

On the bright side of things, lots of people are looking for things to start turning around next year, and there does seem to be an increase in buyer activity in the past few weeks. We certainly hope it continues! It will take a while for prices to increase, though, because there is such a glut of homes for sale right now, and more homes will probably come on the market early next year.

Whether you decide to put out the For Sale sign now, or wait til next year, just be prepared that it will probably take a while and the price will probably not be as much as you'd like. Sorry the news isn't better right now.

[esselcue]

If you want or need to sell, then put up a sign. What have you got to lose? Probably won't sell for as much as it would have two years ago, but if it's priced right it will sell. I want (not need) to sell my Chino Valley home after January because I am retiring and moving out of the area if possible. I will list it at a fair price and hope for the best...but I don't need to sell so it puts me in a different situation than some folks. Every situation is different

[ckdaajd]

Thanks for the helpful information. No we don't need to sell but would like to in the next couple of years just to be closer to family. I guess we'll just wait it out for a year or so. We bought the home new in 1992 so we've got good equity but guess we'll take what we get and price according when the time come. Thanks again for the quick response and good honest advice.

[Ria Rhodes]

Originally Posted by Gretchen B

Unfortunately it's not the best of times here in Prescott for sellers. There are currently over 3,200 active residential listings on our MLS, and sales are running about 150 to 200 per month, about 4-5 buyers for every 100 homes. (This takes in the tri-city area and outlying areas, and includes site-built as well as mfg'd homes.) Sales in just Prescott proper are running about 50-75/month. Stats show that sales are down about 40% over last year.

The problem for sellers right now is that prices have been on a slow but steady decline. This presents a problem with waiting, because the price you'll get the longer you wait is probably going to be lower than what you'll get right now. However a quick sale means pricing aggressively at the outset, and that's usually a hard pill to swallow. We've got a ton of homes for sale right now that have been on the market 9 months or longer. Many started out high with their price and are chasing the market downward, but still aren't able to get a contract.

On the bright side of things, lots of people are looking for things to start turning around next year, and there does seem to be an increase in buyer activity in the past few weeks. We certainly hope it continues! It will take a while for prices to increase, though, because there is such a glut of homes for sale right now, and more homes will probably come on the market early next year.

Whether you decide to put out the For Sale sign now, or wait til next year, just be prepared that it will probably take a while and the price will probably not be as much as you'd like. Sorry the news isn't better right now.

The way things are deteriorating in the US economically and politically, selling a home may be the least of peoples problems. Suggesting that "things may pick up next year" is like saying "the war may end soon" - wishful thinking not grounded in probability. Be prepared for both negative situations to drag on and on and on...

[Gretchen B]

Originally Posted by Ria Rhodes

The way things are deteriorating in the US economically and politically, selling a home may be the least of peoples problems. Suggesting that "things may pick up next year" is like saying "the war may end soon" - wishful thinking not grounded in probability. Be prepared for both negative situations to drag on and on and on...

Originally Posted by Gretchen B

. . . On the bright side of things, lots of people are looking for things to start turning around next year, and there does seem to be an increase in buyer activity in the past few weeks. We certainly hope it continues! It will take a while for prices to increase, though, because there is such a glut of homes for sale right now, and more homes will probably come on the market early next year.
. . .

I totally agree that this is a very uncertain economy right now and only time will tell whether things improve or not. Our increased activity here could be seasonal. Again, only time will tell.

Whatever happens next year, even if things do start to turn around, I really doubt we'll see any price increases. We could even see a further decline in prices. My own "gut feeling" is that we're starting to see the bottom, and we will continue to see the bottom for another couple of years. I don't think we're going to hit a point where all of a sudden all this excess inventory gets quickly bought up, new home building start going crazy again, and prices start escalating.

Hopefully we're all learning a valuable lesson right now. Homes are meant to be lived in, to raise a family in, to enjoy for many years. I think we (the Country) got into trouble when we started viewing homes as a way to make a quick buck or to use as a personal ATM machine. And we're all definitely paying the price on that.

[poolgirl51]

Originally Posted by Gretchen B

Hopefully we're all learning a valuable lesson right now. Homes are meant to be lived in, to raise a family in, to enjoy for many years. I think we (the Country) got into trouble when we started viewing homes as a way to make a quick buck or to use as a personal ATM machine. And we're all definitely paying the price on that.

Gretchen, very well said!!!!

[bucky7680]

Wow you all must be very young. In my short life I've seen this kind of economic down turn 4 times. (With Democrates & Republicans in control) Now is the time to sell only if you have to or you bought years ago and can still come out with some profit. The home prices in the Prescot area will not go up until the Southern California market recovers. From my experience, a large percentage of the home buyers in the Prescot area have been people who sold there Southern California homes and used the proceeds to purchase homes there.

[Gretchen B]

Originally Posted by bucky7680

Wow you all must be very young. In my short life I've seen this kind of economic down turn 4 times. (With Democrates & Republicans in control) Now is the time to sell only if you have to or you bought years ago and can still come out with some profit. The home prices in the Prescot area will not go up until the Southern California market recovers. From my experience, a large percentage of the home buyers in the Prescot area have been people who sold there Southern California homes and used the proceeds to purchase homes there.

That would be correct. A lot of our buyers here in the Prescott area have relocated from California. In the past we have also had quite a few buyers from Phoenix who are looking to get out of the heat or have a 2nd home here in Prescott.

From a seller's standpoint, it would be wonderful if the California market turned around, as that would really help sales here in Prescott. Right now the Phoenix market has seen some major price declines, so Prescott is now priced higher than Phoenix. (It used to be the other way around.)

However, despite the negative impact that those two markets have on our Prescott market, Prescott is still an area that people from all over the country check out as a possible relocation destination. Lots of people love the topography, climate, and location of Prescott. What seems to be lacking for many, though, is a job waiting for them to enable them to make the move here. (That, plus getting their home sold - which, unfortunately, is a nationwide problem.)

Things will eventually turn around, but it's not going to happen overnight . . . or even over the next several months. In another year or two? Only time will tell.

[LBear]

From the Las Vegas Ranch site in Prescott/Williamson Valley, they, state:

"Prices have been reduced substantially. Properties that sold in the high $500's and $600's are now available in the $300's! These new prices make LV Ranch Estates the very best value in Prescott Arizona real estate or Arizona ranches for sale. And we have attractive financing for qualified buyers."

Prices have dropped by 50% in about a year. Think about that! Usually the average price increase of real estate is about 4% annually. It would take almost 13 years to make-up that 50% drop.

It's not over yet. I believe the bottom will hit around summer 2009. That is being "conservative". Some say 2010. For sure, it has NOT hit bottom yet. With the $700 billion dollar bailout and all these banks going under. We are still falling and falling hard.