Inventory, as you probably already know, remains very low.

To recap, in February there were 589 homes on the market, 537 in March, 550 in April and here we are today at 579. So those levels are staying very constant, with not a lot of growth.

Looking at demand year-on-year, comparing this April with the same period last year, we are down 12%, meaning that 88% of that demand level is still there in the market. We saw an uptick of about 15% in April this year, compared with March. So there are lots of buyers still coming into the market.

Days on market before a home sells has dropped a little bit. We are now looking at 67 days on average.

In terms of sold values, we had a pretty strong rebound last month. Prescott actually went up by 9.5%, though 10% of homes sold for over $1million, including one out in Williamson Valley that sold for over $515 per square foot, so that could have skewed those numbers just a little bit as there was an exceptional number of homes closing in that price range last month. However, Prescott Valley did go up 3.2%, Chino Valley 6.4% and MLS-wide 7.3%.

Mortgage interest rates are climbing and approaching 7% yet again. If you are a buyer and working with an agent, ask for some help with closing costs in an attempt to get that rate brought down. We do think there is going to be some relief later in the year, but remember, if you're a buyer on the fence, that as the interest rates come down, typically home values will go back up. We are already seeing this now, so if you are wondering when the right time to buy may be, I would worry more about the property you are seeking than the rate today.

We are still seeing a fair amount of cancellations in the marketplace, so one thing you shouldn't overlook as a buyer are properties that are under contract with a contingency. There are certain contingencies out there where a seller may have accepted an offer that's contingent upon a buyer putting a home on the market and getting a contract. During that window, until that buyer gets an accepted contract on that home, the seller has the right to say: "Hey I'm really sorry but we have another offer, I need you to remove your contingency or I'll put the other buyer in first position on my home." So, if you're not talking to your agent about those kind of contingencies, make sure that you do.

On a national level, we are still seeing very low inventory. Last month 33% of the homes that came on the market nationally were new construction. That number is way higher than it ever has been. From 2000 to 2019, new construction represented only 12.7% of the total inventory of available homes for sale.

The other trend we are seeing nationally is that new construction home size has been coming down a little bit. That is likely an attempt to get new homes into a more attractive price point, based on current interest rates.

If you have any questions at all, don't hesitate to contact me at 928-237-4425.

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