Prescott Valley’s Foreclosure Market Brisk

Market Update

Are you interested in taking advantage of some of the lowest prices in years for Prescott Valley distressed properties? Now may be the time.

There are currently 90 bank-owned/REO and short-sales site built residential listings in the Prescott Valley MLS and they’ve been on the market an average of 80 days at $190,355, and these homes average 1,757 sqft and $108 per sqft.

This compares to 542 total listings that have been on the Prescott Valley market for an average of 170 days at $253,508, and these homes average 1,933 sqft and $131 per sqft.

In the last 6 months of 2008, 67 bank-owned/REO and short-sales homes were on the market for an average of 82 days at $183,579, and these homes average 1,735 sqft and $106 per sqft.

Compare this to 408 total Prescott Valley home listings that sold in an average of 131 days at $211,484, and these homes average 1,749 sqft and 121 per sqft.

What the heck does any of this mean?

When we look at the days on market (DOM) numbers, the pace of 82 days on market that the REO properties are realizing is like the “good old days of 2005″ for traditional real estate.  Now the overall market is taking 131 days to sell 63% longer than REOs. This means that REO properties are priced at a point where cash buyers and investors are stepping in to the market.

The percentage of REO homes on the market is currently at 17% of the overall Prescott Valley market compared to 6% of the Prescott market. Sales in the last 6 months of 2008 made up 16% and 11% respectively. Prescott foreclosure buyers were buying at twice the ratio of listings.

Conventional wisdom suggests that homeowners wanting to sell property in today’s market need to be ready to price agressively to compete against the REO market. And they’ll have to be ready to offer concessions to buyers like paying closing costs, etc.

Banks are making their listings attractive to buyers. One well-priced REO listing I saw recently was offering preferential loan rates, no appraisal fee, $3500 for closing costs to the buyer, and a bonus of 1.5% to the selling agent. That’s an incentive that one buyer is going to take advantage of.

For more information about the Prescott Valley foreclosure market, contact Patrick Schutte, Certified Foreclosure Specialist at patrick@prescott-area-foreclosures.com.  Be sure to sign up for the weekly report of foreclosed listings in the Prescott area.