Last month we saw some noticeable changes in the marketplace.

In spite of the fact that our inventory of site built single family homes has been relatively constant over the past three or four months, it went up by 19.3% in May. On May 1st there were 579 total homes for sale and by June 1st that number had risen to 691. That's the first time we've seen a big increase in recent times.

As far as values are concerned, Prescott, Prescott Valley and Chino Valley all came down by about 3.5% last month.

So a little bit of an uptick on inventory and a slight downtick on values.

The average number of days a home is on the market until it goes under contract is currently running at 54 days. Some properties will have been on the market longer than that, so that figure really speaks to homes that are priced correctly. You will see some homes that have been on the market longer than that. This doesn't necessarily mean there's anything wrong with them. They could need a little bit of a price adjustment or there are other extenuating circumstances.

The Federal Reserve recently announced they weren't going to raise interest rates, but remember that there's not a direct correlation between those and mortgage interest rates. Those are still staying in the 6.9% to 7% range. If you're a buyer, keep in mind there are ways to get a little bit of a lower rate. You can always ask a seller to give you a little bit of a concession and we are happy to guide you through that process.

You may have heard or read in the news about notice of defaults on commercial properties. It looks like commercial lending regulations will be tightened moving forward. Depending on the scope and depth of how many commercial properties continue to come back to the banks as rates are adjusting from purchases made in the past couple of years, it will be interesting to see how or when that might trickle into the residential side, if it starts impacting the stock market and consumer confidence. We'll continue to monitor this, but we don't know what the outcome will be.

If you have any questions about what's going on in our market, lending etc, we are happy to help in any way we can, so please call me at 928-237-4425.

Have a great day,
Geoff

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