The 2023 Prescott Housing Market appears to be on a path of comparatively steady performance. When looking at nearby cities, Prescott saw comparable increases in home prices over the past several years. Through the end of 2022 and into 2023, prices are softening in a similar fashion. In fact, Prescott is a study in steady habits. According to Redfin, Prescott Valley was the most popular destination among Phoenix homebuyers, followed by Show Low and Flagstaff. Rather than move far from home, Phoenix residents most often chose to stay in Arizona, in the Prescott area.
Pricing in the 2023 Prescott Housing Market
The January 2023 median sales price in Prescott is 11% less year-over-year. As with any real estate market, some homes may be priced higher, and other homes may be priced lower. 10.7% of Prescott homes sold above their list price in January. Sellers with homes in the most desirable areas and that have the most in-demand features are likely to have multiple bids.
Looking at the median days on market for Prescott, the data shows a leveling out over the past three months. Whereas days on market were as low as under 20 during April 2022, the most recent data shows the following:
Three Months of Leveling Days on Market
This trend may reflect the market is responding to seller incentives, creative lending programs, and perhaps a declining overall inventory. Over the past five years, the Prescott market in January has usually reflected days on market of about 100. However, the years impacted by Covid saw a dramatic decline in days on market. Now, however, the pandemic appears to be over and there are economic headwinds in the real estate market. As a result, days on market seems set to return to its more normal and historical levels.
2023 Prescott Housing Market Price Appreciation Trends
Wallet Investor predicts the median list price of homes in Prescott will rise by 2.3% over the next year. Additionally, prices are forecast to continue rising over the next several years. This is most likely due to a shortage of homes on the market. Demand for homes in Arizona will continue to grow in 2023 due to continuing economic activity and population growth. However, home construction has not kept pace with demand. Therefore the 2023 Prescott Housing Market is indicative of the entire state of Arizona’s housing market–high demand and insufficient supply.
Importantly for sellers, homes in Prescott are selling for 6.1% more than a year ago, according to Rocket Homes using data from ARMLS. Also, days on market under 90 is seen as a fast-selling housing market. Remember, it was only during the Covid pandemic that home sales drove days on market to historical lows. Even so, that measure remains below its normal trend for the month of January.
What Does This Mean?
In a comparatively steady market such as Prescott, it is important for agents to know both the historical picture and the current trends. Access to data, reports, and analyses are critical to help clients get a full picture of the 2023 Prescott Housing Market. For Sellers and Buyers, Prescott offers many opportunities.
1. For Sellers: Sellers will benefit by working with a knowledgeable real estate professional. Information about the local market, comparable sales, and buyer interests are invaluable to sellers looking to achieve the most ideal outcome. Some areas of Prescott will continue to remain highly desirable, as with any housing market. Additionally, buyers from Phoenix who are looking for a luxury second home are more likely to remain an active part of the local Prescott real estate market.
2. For Buyers: As with many other markets in Arizona, demand in the 2023 Prescott Housing Market is likely to continue rising. Buyers ready to enter the market should consider acting quickly as days on market are comparatively low on a historical basis. With prices likely to continue rising, buyers should avoid delays that would reduce future market gains.
Prepare for the 2023 Prescott Housing Market
Real estate professionals who want to prepare for the 2023 Prescott Housing Market should focus on the number of contacts in their database. Keller Williams notes that agents with over 201 contacts tend to perform at a much higher level than agents with a smaller number of contacts. Think of this as critical mass–once you reach a certain number, your efforts are much more likely to not only reach your database, but further beyond to new contacts through referrals.
Keller Williams Arizona Realty offers real estate agents a significant amount of education, classes, and support for their real estate career. Agents can leverage the KWAZ coaching program to improve their performance and drive their business to higher levels. Most importantly, agents can learn how the real estate market shift will impact the market and how best to respond.
Call us today: 928-421-4550