It's no secret that the Prescott real estate market has become extremely competitive in the last year. In most cases, it is the Sellers who are reaping the benefits of the current environment - not just locally, but nationwide. What has shifted to culminate in a very strong Sellers' market? Take a look at the numbers below, comparing the Prescott real estate market in the first week of March in 2020 to the same week in 2021:
The most dramatic increase, of course, is the Median List Price of homes for sale in Prescott. Last March, the Median List Price was $575,000, and as you can see above, one year later the current Median List Price has jumped to $750,000. There are a handful of reasons for this significant increase, but it primarily comes down to supply and demand. If you scan down to the Inventory line, you'll see that the number of homes for sale has decreased from 337 this time last year, to our current low of 100 homes available for sale in Prescott. With such a small supply, Buyers have few options from which to choose, and find themselves competing against others for the same property, driving the price up well past the listing price, in many cases.
We are hopeful that as COVID concerns lessen, and we are able to move into a more "normal" real estate environment, potential Sellers who have taken a "wait and see" approach will move forward with their transition plans, and list their homes for sale. As the supply increases, the prices and thus competition should level off considerably, and produce a more balanced market.
In the meantime, Sellers who list their homes in the next few months to take advantage of the strong demand and limited competition stand to reap significant rewards. In a highly competitive real estate market, it's important to work with professionals who understand the current market and can leverage it to your best (ethical) advantage. If you're thinking about making a move, we'd welcome the opportunity to help you in any way we can.
