Prescott Area Market Report

The distressed real estate market in the Prescott area was busy again this week with 18 new homes coming on the market, about one in every five homes being listed in the Prescott Arizona Area MLS system.From the sales side they represented over half of the homes sold, and were over half of the sales that went into escrow.

The difference between what traditional pricing and Prescott foreclosed/REO and short sale properties per square foot remains with strong at a 23% discount.

Thinking about buying a short sale in the Prescott Foreclosure or Prescott Valley Foreclosure market?

See this article on my blog to get prepared:  10 questions for Prescott AZ short sale brokers

To get more information about any of these listings or any others in Prescott, Prescott Valley, Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search the Prescott MLS section.

New Listing Stats Last 7 Days*
	REO/Short Sale	Traditional
New	18	74	20%
List $/sqft	$108	$153	29%
Pending	17	15	53%
Closed	12	11	52%
Sold $/sqft	$90	$117	23%
	*Source: Prescott Arizona Area MLS (PAAR)

New REO/Short Sales listings are 29% less per square foot than traditional resales this week.

See the full report.

Search for Prescott area REO/Foreclosed and Short Sale Listings

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Prescott Area Market Report

The distressed real estate market in the Prescott area was busy again this week with 17 new homes coming on the market, about one in every five homes being listed in the Prescott Arizona Area MLS system. From the sales side they represented about one in every three homes being sold, and were over half of the sales that went into escrow.

What is amazing to me is the difference between what traditional pricing and distressed homes per square foot: more than a 25% discount this week at 28%.  One of my buyers this week was able to take advantage of these deals and after negotiating with a bank for over a month, we finally hammered out a deal…remember to be prepared to be frustrated during the process of dealing with banks.  They can be painful transactions to be sure!

See this article on my blog to get prepared:  Top 10 tips to win the REO multiple offer game.

To get more information about any of these listings or any others in Prescott, Prescott Valley,  Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search the Prescott MLS section. 

The percentage of foreclosed/REO/short sale new listings on market went up a little from 16% to 19% this week. Last week 58% of the pending sales were REO or Short Sales, and this week they were made of 55% of the deals going into escrow. The amount of REO/Short Sales that closed last week still represent about…See the full market report.

Prescott Market Report

REO, foreclosed and short sale new listings remained at a level of about 1 in 6 or 16% of every new listing.  Last week 46% of the pending sales were REO or Short Sales, and this week there 58% of deals in escrow were distressed sales.  The amount of REO/Short Sales that closed last week still represent about a 1/3 of our listings, and went from 35% last week to 33% this week. 

In a nutshell, distressed listings in the Prescott area are selling at twice the pace of traditional sales.

To sign up to get an expanded report emailed to you, or to see the current report, click here.

Survey results were kind of interesting this week…after 3 weeks of declining price votes, the up vote edged up 1% from 30% to 31%.  Judging by the new low prices by distressed sellers, we’ll see…

Who knows how far prices will fall , but at least 1/3 of buyers in last week’s market thought that now was the time to buy a distressed property at a discount in the Prescott area market.

If you haven’t voted yet, please do so, and if you have already, thanks! We’ll track what happens over time to the Prescott real estate consumer confidence rating.

Here is the latest 7 days worth of REO/foreclosed and short sale listings in the area:

Average list price per square foot is $117

To get more information about any of these listings, feel free to contact us, or you can search by MLS number, address, or lots of other ways in our Search MLS section.

Prescott Home Pricing Problem

According to the Zillow Q4 Real Estate Market (2008) survey released yesterday by Zillow.com, some 70 percent of homeowners surveyed believe their home’s value will either increase or stay the same in the first six months of 2009, while only 30 percent expect a decrease in value.

Fifty-seven percent believe their home lost value last year, up from 38 percent of those surveyed in the second quarter of 2008.

In reality, 76 percent of all U.S. homes lost value in 2008, according to the Q4 report.

See Zillow Blog: Homeowners Call a Bottom: Optimism or Delusion?

Homeowners in the Prescott and Prescott Valley Arizona market area are probably lumped into the West’s stats (see below) released from Zillow recently.  If true, then homeowners are still adjusting to the reality of the what their homes are worth. 

Homeowners in the West, where values were hardest-hit, lost some of their optimism in the fourth quarter, but home values continued downward, leaving Western homeowners’ perceptions among the farthest from reality with a Misperception Index of 13 (the same as last quarter). Southerners’ perceptions were farthest from reality, with a Misperception Index of 14. 

With a Misperception Index of only 3 — down from 20 in the third quarter — the perception of homeowners in the Northeast was closest to reality. Well over half (57 percent) of Northeastern homeowners believe their own home’s value declined during 2008, while 20 percent believed it stayed the same. According to Zillow’s fourth-quarter data, 71 percent of homes in the Northeast declined in value during 2008.

The country is optimistic, however, and more than half of those surveyed in Zillow.com’s Q4 Homeowner Confidence Survey believe their own home lost value in 2008, more than two-thirds appear to believe that the worst may be over.  This optimism may be misguided though…read on.

“It’s clear that the ‘not my house’ sentiment that was so prevalent in earlier surveys is waning, and homeowners are opening their eyes to the unfortunate reality of significant losses in home values across most of the country,” said Dr. Stan Humphries, Zillow’s vice president of data and analytics, in a statement. “That said, there’s a curious optimism for homeowners when asked about the future — most seem to believe we’ve hit a bottom and the worst has passed. Unfortunately, the data tells another story. With year-over-year home value losses continuing to accelerate, most areas of the country will see housing values get worse before they begin to stabilize.”  

In my last Prescott Area Real Estate and Foreclosure Market Report, the data showed that short sale and foreclosed/REO/bank-owned homes were selling about 20% less per square foot than conventional homes and at a much quicker pace. 

This could be due to a couple of reasons:

1. Most banks are pricing their homes using several BPOs (Broker Price Opinions) at the price that allows them to sell in the 90 to 120 day timeframe that they are generally looking for.See:  Why are REO homes priced all over the place?
2. Some homeowners are pricing their homes based on what they paid for them; what they “need to get”; what their neighbor got last year; what feels right to them; or worst of all by an agent who does not do the pricing research and is not in tune with today’s market.  And unfortunately, many sellers are pricing their homes too high at the outset, thinking that they will get a lower offer and negotiate…the offers don’t come…the home isn’t even shown and 6 months later, it’s worth even less! 

The Zillow Data:

Homeowner Perception by Region

For more information about what your home is worth in today’s market, or to find out how to profit in today’s market, please contact me at 928-710-1717.

Prescott Market Report

Yesterday I went to Chino Valley with a client and we looked at some distressed sales that were priced at the same levels as 2002 and 50% off of 2006 prices!

My client decided to put in an offer and we are going to compete with 2 other buyers on a short sale and I hope our offer prevails. 

Luckily the other agent was well versed in short sales and could answer the 10 questions that I try to get the short sale’s agent to answer before making an offer.

To sign up to get an expanded report emailed to you, or to see the current report, click here.

Here’s the latest 7 days worth of REO/foreclosed and short sale listings in the area:

MLS #	List  Price	SQFT	$/SQFT		Address			City
935135	$113,000	2,052	$55		5205		Sapphire Circle	Cottonwood
935133	$217,900	3,013	$72		413		Ensenada St	Dewey -Humboldt
934949	$152,000	1,948	$78		13065		Durango St.	Dewey -Humboldt
935081	$119,900	1,366	$88		4080		La Jolla Dr	Prescott Valley
935084	$270,000	2,744	$98		619		Kinglet Ct	Prescott
934984	$344,900	3,408	$101		7527		Traders Trail	Prescott Valley
935012	$280,500	2,739	$102		11510		St Mathews Mtn	Prescott Valley
935117	$95,000	912	$104		4224		Preston	Prescott Valley
935046	$174,900	1,623	$108		7113		Sunup Pass	Prescott Valley
935082	$135,900	1,223	$111		6661		Sandhurst Dr	Prescott Valley
935011	$165,000	1,410	$117		1353		Taft Ave	Chino Valley
934924	$189,000	1,518	$125		7903		Sittin Pretty	Prescott Valley
935090	$229,000	1,798	$127		4135		Val Verde	Prescott Valley
935087	$181,500	1,420	$128		3349		Starlight	Prescott Valley
935007	$158,470	1,207	$131		7283		Night Watch Way	Prescott Valley
934978	$79,500	576	$138		23509		Malnetta Rd	Crown King
935037	$150,000	1,026	$146		262		Posey Ln	Chino Valley
935124	$499,900	2,173	$230		11990		Cielo Grande	Prescott
934992	$785,000	3,325	$236		2163		Forest Mountain	Prescott

Average list price per square foot is $121.

For more information on any of these listings including the days on market for an individual property, please contact me.

Search for Prescott area REO/Foreclosed and Short Sale Listings

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Prescott Market Report

Another busy week for me with several buyers making offers on properties, one without even seeing the property.  Some of the deals had multiple offers on them, even after a couple of days. 

If you are planning on making an offer, please read these tips on how to compete in the REO multiple offer game.

I know the national news is all gloom and doom, but maybe these buyers haven’t got the message.  Some of them believe it’s a good time to buy.  They certainly believe that the next 5 years will bring healthy returns on their …see the whole report.

To get more information about any Prescott area foreclosure listings, feel free to contact us, or you can search by MLS number, address, or lots of other ways in our Search MLS section.