As of June 1st, our inventory continued to rise a little bit. We have 936 site-built single family homes in our MLS as it stands today. This is coming off of 880 properties that we saw on May 1st, which is about a 6% increase.

As a result of that, we did see values falter a little bit. In Prescott last month, we saw a decline of about 4.5%, Prescott Valley declined by 2.7%, Chino Valley saw a slight uptick of 3.5%, but, MLS-wide, a negative 3.5%.

We talked about this last month and the trend we have been seeing is that our inventory has been rising. Some of that is seasonal, it's normal to see that, but we are a little ahead of the curve this year, compared to what we've been seeing in the last several years.

Based on historical data, it's still feasible that we could see certainly in excess of 1000 homes on the market in total, but also in excess of 1100. We haven't seen those kinds of numbers since 2016.

So, without trying to predict exactly what's going to happen here, usually as inventory levels go up and demand stays the same, sometimes we are going to see a correlating fall or decrease in values. That's exactly what we saw this last month.

Average days on market have actually come down a little bit. These are homes that closed escrow last month. They were on the market in Prescott for 53 days, 63 days in Prescott Valley, 60 days in Chino Valley and an overall MLS average of 57 days. This is the days on market that it takes for a home to hit the market on the MLS and attract an offer, so you have to typically add 30 to 45 days for a normal escrow period before a property is actually going to close.

When you look at the active inventory that's in the market right now, those homes have been on the market an average of 103 days. So what you're seeing there is price adjustments coming down. Homes are sometimes initially priced a little optimistically, nothing happens, so a price reduction or two happens until the right value is actually reached.

If your home comes on the market priced correctly, that's when you're going to attract the most activity and interest and that's when you can see those days on market closer to the 50/60 day mark.

At the Federal Reserve's latest meeting, they chose not to change interest rates. After the Fed announcement, mortgage rates did dip just below the 7% mark, but we don't anticipate a lot of huge changes. Whether we are going to see on adjustment or another by the end of the year remains to be seen.

I get asked what I would do by buyers all the time. From my perspective, buyers have been asking us "Where's all the inventory?" for years. Right now, we're on a trajectory to see more inventory available in the market than we've seen since 2016 so, if you're a buyer, it's a great opportunity to go out and find the home of your dreams. Once the rates do adjust, either this year or next year, and we catch some relief, then go ahead and refinance.

There are sellers that are seeing the reduction in pricing and rise in inventory right now, so there's some wonderful opportunities out there.

Sellers are asking me what's the best time of year to sell? What should we do? While the crystal ball is foggy, what I can tell you is that inventory is continuing to rise and it's not just here locally, but on a national level.

By the way, year-over-year values are up 2.4% in Prescott and by 3.5% in Prescott Valley, so we're still ahead of where we were this time last year.

If you have questions about what your home is worth today, please reach out directly - 928-237-4425. I'll be happy to take that meeting with you.

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