November was another interesting month in Prescott real estate, with some encouraging market indicators.

We actually saw a slight uptick in inventory of active listings in December compared with November, though not much.

Generally speaking we've been hovering between 750 and 800 site-built single family homes. On November 1st we had 758 active properties on the market. This month it's up to 784.

Demand in terms of the number of homes that went pending in November this year was an increase of about 45% over November 2021!

Interest rates in early November were ranging between 7.25% and 7.5%. As we progressed through the month those rates got as low as 6.25% and we had buyers locking in the high fives. So my speculation is that the relief in rates spurred some additional activity.

As far as values are concerned, for the overall Prescott area MLS, they dropped by about 4%. Prescott experienced the biggest drop of 8% and prices fell by 5.5% in Prescott Valley and 6% in Chino Valley.

So we are seeing things continuing to trend down. The only change is the interest rate relief that seemed to spur some additional buying activity last month.

Average days on market for all area municipalities is at about 55 days. But an important note of distinction is that figure reflects homes that are accurately priced and the time in which those homes should sell. The active inventory in many cases has been on the market a lot longer than that.

Right now with the inventory and demand that exists, we have about a 3.5 month supply. So we are still less than Phoenix just to the South of us, but that number has continued to trend up a little bit.

For context, remember that a normal real estate market should be between a five to seven month supply. So with just 3.5 months supply, we are still far from an oversupply situation.

I hope you've found this update useful and, again, Merry Christmas and Happy Holidays from everyone at The Hyland Group.

Best wishes,

Geoff

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