August 2012 Monthly Market Watch for the Prescott Quad City Area Provided by Keller Williams Check Realty Statistics from August 2012 Prescott MLS
Report Overview: This report includes MLS data for the past 36 months in the Prescott Area only as provided by the Innovia system for the Prescott Area Association of Realtors. Please note that searches fluctuate daily when running these reports. Data was compiled on September 8, 2012. All information is deemed reliable but not guaranteed.
350 Total Number of Homes Sold in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 330 310 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 MAY JUL AUG JUN 290 MAR 270 SEP 250 230 OCT NOV DEC JAN FEB APR 210 190 170 150 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 213 272 192 199 166 173 206 307 235 299 233 245 9/10 to 8/11 255 275 243 236 188 202 288 269 280 300 261 273 9/11 to 8/12 267 249 246 228 234 229 280 234 302 292 311 314
Closed Sales Report Analysis: Sellers: The total number of closed sales in August reached its highest monthly in several years. For sellers, this means there are a lot of potential buyers in the market. Sellers have been helped out by the seasonal summer push and buyers taking advantage of continued low interest rates. As a seller, you can attract more buyers by working closely with your real estate professional to properly p price and stage your house. Buyers: Activity and competition for homes has been robust throughout the summer. This makes it even more important for you and your real estate professional to monitor the inventory closely for well-priced homes. With interest rates continuing to be very low and the National Association of Realtors Home Affordability Index continuing to be very high, buyers are seemingly looking at the long-term impact of buying a home in the current environment, overlooking the continued decrease in values in some neighborhoods.
Comparison of REO, Short, and Regular Homes Sold in Prescott Area MLS August 2012 Overview Source: Prescott Area Association of Realtors MLS. Information deemed dreliable but not guaranteed. REO/Bank Owned Sales 55 sales, 17.5% Short Sales 35 sales, 11.1%, Regular Sales 224 sales, 71.3%
80.0% Percentage of REO, Short, and Regular Homes Sold in Prescott Area MLS June 2009 to Present Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 70.0% 60.0% 50.0% 40.0% 30.0% REO % SS % Reg % 20.0% 0% 10.0% 0.0% Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12
Distressed Sales Analysis: This has become an even more important part of the market report, as it shows the percentage of sales that were bank owned/foreclosed, short sales, and regular sales. A bank owned/foreclosure home is one that the seller no longer owns it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller owes more money to the bank than the home is worth and the home owner is negotiating with the bank to forgive a portion of the debt in order to avoid foreclosure. The percentage of the market represented by traditional equity sales has increased markedly over the spring and through the summer, reaching over 3 year highs. The number of foreclosure and short sale home sales have decreased. Continue to monitor these numbers to see if the trend continues as it could indicate a shift in supply type - which could impact both buyers and sellers.
Number of Notice of Trustee's Sales in Yavapai County January 2006 to Present y Source: Yavapai County icris system. http://icris.co.yavapai.az.us. Information deemed reliable but not guaranteed 450 400 350 300 250 200 150 100 50 0 Jan 06 Mar 06 May 06 Jul 06 Sep 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08 Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12
Notice of Trustee s Sales Analysis: A Notice of Trustees Sale is constructive notice to a property owner that their property is scheduled to be sold by the lien holder to recover debt owed to the lien holder by the property owner. The notice is public information and typically includes the date, time and location of the public sale. December s filings of Trustee s Sales (NoTS) decreased slightly from last month and in eyeballing the regression since the peak of NoTS in the summer of 2009 they appear to be trending down steadily with a slight increase heading into the summer. A decrease in the number of NoTS correlates to a decrease in the number of foreclosures, which is one key indicator of the housing market. Keep in mind that many of the homes that received their NoTS, up to 12+months ago, have yet to be foreclosed and placed on the market for sale. Every yp person s situation is unique. If you have questions regarding g loan modifications, refinancing, foreclosures, or short sales, please contact your Real Estate Professional.
Total Number of Homes Pending in Prescott Area MLS 36 Month Overview Source: Prescott Area Association i of Realtors MLS. Information deemed dreliable but not guaranteed. 240 JUL 215 JAN MAR APR MAY JUN AUG 190 SEP OCT FEB 165 NOV DEC 140 115 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 90 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 175 166 110 152 164 183 248 228 182 195 199 188 9/10 to 8/11 195 186 174 136 195 180 241 218 213 207 187 213 9/11 to 8/12 187 181 154 153 211 169 217 205 201 212 231 220
Pending Sales Report Analysis: Sellers: Pending home sales have steadily increased through the spring and into the summer. In August, 220 homes received accepted offers, indicating that well priced, well staged homes are in demand. Sellers need to continue to monitor this number because it is one indicator of how willing and able buyers are to purchase a home. Buyers: Buyers must continue to be diligent in searching for a home prices and interest rates continue to be favorable. A consistency in the number of homes under contract throughout the summer is likely directly correlated to positive aspects such as pricing, condition & low interest rates. Multiple offers are being submitted on properties that are priced within the market. Continue to work with your real estate professional to ensure that your financing is secured before looking for a home so you don t miss out on your dream home or any of the fantastic opportunities that are still available to you.
$185,000 Median Sales Price of Homes Sold in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed dreliable but not guaranteed. $175,000 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 AUG $165,000 MAY JUN $155,000 NOV FEB APR JUL $145,000 SEP $135,000 OCT DEC JAN MAR $125,000 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 $170,000 $165,000 $165,000 $159,000 $155,000 $145,000 $160,000 $158,500 $145,000 $150,000 $158,000 $159,000 9/10 to 8/11 $145,000 $154,900 $142,900 $149,950 $150,800 $136,450 $129,900 $140,000 $135,000 $146,750 $138,541 $155,000 9/11 to 8/12 $140,000 $131,000 $149,450 $136,900 $133,450 $149,000 $135,000 $154,950 $160,000 $161,925 $152,000 $167,075
Median Sales Price Analysis Sellers: The median sales price increased to its highest level since September of 2009. Sellers need to continue to monitor this, working closely with their real estate professional to ensure they are priced correctly. To be competitive, sellers still need to ensure that their properties are priced in the market and are in the most favorable condition possible. Buyers: There continue to be great purchase opportunities for all buyers. Buyers who are waiting for the bottom of the market should closely analyze the trend in the median price chart and consider the risk of waiting in light of increasing interest rates and prices. It is more important t than ever that t buyers are working with their real estate t professional to really understand the price point they need to be at in order to purchase a home.
Median Days on Market of Homes Sold in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 140.0 130.0 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 JAN 120.0 FEB NOV DEC 110.0 100.0 90.0 SEP OCT MAR APR MAY JUN JUL AUG 80.0 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 110.0 119.5 107.5 98.5 99.0 111.0 88.5 101.0 91.0 112.0 101.0 106.0 9/10 to 8/11 100.0 102.0 96.0 113.0 103.0 108.5 111.5 99.0 87.0 86.0 84.0 87.0 9/11 to 8/12 101.0 92.0 111.0 113.5 128.0 118.0 104.5 87.5 100.0 86.0 91 94.0
Median Days on Market Analysis Sellers: In August, the local real estate market experienced a median days-on-market of 94 days. This means that a home is staying on the market an average of 94 days from the time it went on the market until it actually closed. It remains important for sellers to keep in mind that properly priced, well staged homes are selling in a reasonable amount of time, while overpriced homes are lingering on the market much longer than the average. Sellers need to keep this in mind if they have a date that they must move by. Buyers: Buyers need to be aware of this number because it is an indicator of how long sellers are having to wait to go under contract and close. The lower the number, the more control a seller normally has. Well priced homes are still seeing multiple offer situations and these numbers to not reflect the urgency often created with many distressed properties. Make sure you are fully qualified with your lender and ready to go when you see the house if you want to compete for the best deals.
99.00% 98.00% Median Sales Price to List Price Ratio of Homes Sold in Prescott Area MLS 36 Month Overview Source: Prescott AreaAssociationAssociation of Realtors MLS. Information deemedreliable butnot guaranteed. JUL 97.00% FEB APR JUN AUG 96.00% SEP NOV DEC JAN MAR MAY 95.00% 94.00% 93.00% OCT 92.00% 91.00% 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 90.00% SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 95.00% 95.90% 90% 95.50% 50% 95.30% 96.40% 96.00% 95.80% 94.80% 95.40% 94.80% 94.00% 93.30% 30% 9/10 to 8/11 94.90% 94.97% 94.22% 94.34% 94.18% 94.98% 90.96% 95.94% 95.35% 95.30% 96.14% 92.64% 9/11 to 8/12 95.52% 92.74% 95.56% 95.43% 95.84% 96.79% 95.89% 96.99% 95.93% 96.85% 98.04% 96.70%
Sales to List Price Ratio Analysis Sellers: In May, the ratio of the sales price to the list price adjusted slightly to 96.7%. The sales to list price ratio indicates that sellers are getting about 3.3% less for their home than the listed price. This is, of course, only IF the house was already priced close to what a buyer is willing to pay. As a seller, it means that a properly priced home is not being negotiated down very much underlining the importance of not factoring in great price decreases when if pricing correctly. Buyers: Buyers need to pay attention. Although the average is less than 100%, on lower priced/highly desirable properties, buyers are finding that they often have to pay above list price to complete the purchase of their home. Since a home must appraise in order to obtain a loan, underwriters are looking very closely at prices and making sure that homes are selling at or below market value. Make sure your real estate professional helps you understand the competitiveness of the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales activity in the area where you are wanting to buy and how the offer you are making competes with the market.
INVENTORY OVERVIEW The following charts are an overview of what is happening with the inventory of homes currently available in the Prescott Area MLS.
Active Residential Listings in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 3400 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 2900 2400 JUN 1900 SEP OCT NOV DEC JAN FEB MAR APR MAY JUL AUG 1400 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 2966 2813 2796 2609 2598 2683 2756 2838 2957 2960 2713 2586 9/10 to 8/11 2433 2278 2154 1995 1938 1903 1845 1943 2000 2036 2065 2052 9/11 to 8/12 1899 1689 1780 1543 1629 1723 1579 1567 1681 2332 1623 1909
Active Listings Analysis Sellers: According to a report by the Prescott Area Association of Realtors MLS - the number of active listings increased to 1909 homes in August. Continue to carefully monitor this chart, as it will be strong indicator of the amount of competition sellers should expect to have. Buyers: Buyers still have many homes from which to choose, but the inventory is less than it was a year ago. Using a real estate professional is more important than ever to ensure you find out about new homes FIRST and know what you need to offer in order to be competitive and appealing to sellers. Continue to monitor this statistic, as it WILL be the statistic that indicates how much new inventory is available to preview the lower the number, the more the competition for homes.
600 Total Number of New Residential Listings in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 550 500 450 APR MAY JUN 400 SEP FEB MAR JUL AUG 350 OCT JAN 300 NOV DEC 250 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 444 401 389 336 400 479 498 565 513 561 491 490 9/10 to 8/11 408 388 321 268 322 368 440 500 442 473 398 411 9/11 to 8/12 353 323 296 266 313 380 364 445 453 463 401 411
New Listings Analysis Sellers: New listings saw a modest increase in the month of August as compared to July. A total of 411new home listings came on the market. Sellers need to continue to watch what the banks are doing with foreclosed properties more properties entering the market in August means slightly more competition. Sellers need to continue to work closely with their real estate professional to ensure proper pricing and staging on their homes. Buyers: This is important news for buyers, as it means there are still a limited number of homes entering the market. It is very important that you continue to spend time with and listen to your real estate professional to develop your strategy for succeeding in a market that is constantly changing. Be prepared: as more homes go pending and sell, there will definitely be more competition for the best values. Be prepared.
Total Number of Expired & Cancelled Residential Listings in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 325 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 275 225 DEC SEP 175 OCT NOV 125 JAN MAR APR FEB MAY JUN JUL AUG 75 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 324 280 226 302 265 240 224 219 203 273 236 277 9/10 to 8/11 279 337 235 269 204 165 180 144 149 152 154 191 9/11 to 8/12 182 168 161 194 129 97 132 131 119 106 137 140
Expired & Cancelled Listings Analysis Sellers: August saw a slight increase in the number of expired and cancelled listings. An expired or cancelled listing means less competition for active sellers if those properties have not been re-listed or moved into foreclosure status. Talk with your Real Estate Professional about what you can do to avoid having your home become an expired listing. Buyers: For buyers, this means that there are 140 fewer homes to consider. Buyers will have to be prepared p to act quickly on available homes that are priced competitively. Continue to watch this trend, as this, combined with price, days on market and sales to list price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.
17.00 Months of Residential Inventory in Prescott Area MLS 36 Month Overview Source: Prescott Area Association of Realtors MLS. Information deemed reliable but not guaranteed. 9/09 to 8/10 9/10 to 8/11 9/11 to 8/12 15.00 13.00 11.00 9.00 700 7.00 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 5.00 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 9/09 to 8/10 13.92 10.34 14.56 13.11 15.65 15.51 13.38 9.24 12.58 9.90 11.64 10.56 9/10 to 8/11 9.54 8.28 8.86 8.45 10.31 9.42 6.41 7.22 7.14 6.79 7.91 7.52 9/11 to 8/12 7.11 6.78 7.24 6.77 6.96 7.52 5.64 6.70 5.57 7.99 5.22 6.08
Months of Inventory Analysis: (This report has been generated by taking the number of active listings and dividing it by SALES for the past month) Sellers: In August, the number of months of inventory continued to hover near multi year lows reaching 6.08 months. This number is an important benchmark as many economists 6 months of inventory as a healthy market. It is common to assume that a market with over 6 months of inventory is a buyers market and under 6 months is a sellers marketit will be very important for your and your real estate professional to monitor this number so that you can make sureyour home is priced and staged accordingly. Buyers: Sellers typically have more control in a Seller s market which is defined as a market of less than 6 months of inventory. However, the type of market will vary from price range to price range and even area to area. Work with your real estate professional to make sure you understand the type of market you are in.
Total Market Overview: Sellers: This report provides a detailed breakdown of homes in the Prescott Area based on price. By determining the price range where your home SHOULD sell, you can see what the average sales to list price ratio is, the median days on market, and more importantly, the percentage of homes selling in that price range. Note that as the price increases, the sales to list price ratio and the number of homes selling decreases while the days on the market increases. Buyers: By reviewing the price range where you are purchasing, you can determine what the average home is selling for vs. list price. This should help you make better and more acceptable offers based on the current market.
August 2012 Total Market Overview Price Range Number of Active Listings Months of Inventory Sold Last Month Number of Pending Listings Pending Ratio August 2012 Overview Average DOM of Actives Number of Expired Listings # Closings Last Six Months Median List Price of Sold Homes 6 Month Averages Median Sold Price Average Sales to List Price Ratio $0 $99,999 301 3.7 71 69 22.9% 149 27 483 $ 69,900 $ 66,000 97.1% 92 $100,000 $124,999 72 3.0 22 19 26.4% 252 8 145 $ 114,900 $ 112,500 96.9% 76 $125,000 $149,999 164 4.9 38 24 14.6% 184 22 200 $ 139,775 $ 135,000 97.3% 78 $150,000 $174,999 95 3.3 29 17 17.9% 171 0 171 $ 162,900 $ 158,000 97.4% 98 $175,000 $199,999 141 5.9 28 20 14.2% 166 13 143 $ 189,000 $ 180,000 96.2% 99 $200,000 $224,999 78 4.7 18 10 12.8% 129 6 100 $ 213,950 $ 205,250 97.0% 91 $225,000 $249,999 119 5.7 6 7 5.9% 157 6 126 $ 239,000 $ 230,000 96.4% 106 $250,000 $274,999 80 5.7 36 9 11.3% 144 11 84 $ 261,700 $ 254,961 96.8% 91 $275,000 $299,999 104 7.1 24 12 11.5% 176 6 88 $ 287,000 $ 275,500 96.0% 135 $300,000 $324,999 46 8.4 2 4 8.7% 125 3 33 $ 310,000 $ 303,000 98.6% 86 $325,000 $349,999 68 8.0 11 3 4.4% 193 3 51 $ 333,000 $ 320,000 95.9% 142 $350,000 $374,999 44 8.3 6 2 4.5% 285 3 32 $ 362,900 $ 345,000 95.5% 85 $375,000 $399,999 77 18.5 4 6 7.8% 199 6 25 $ 385,000 $ 370,000 94.9% 88 $400,000 $449,999 59 14.2 6 5 8.5% 235 3 25 $ 429,900 $ 410,000 95.6% 107 $450,000 $499,999 71 16.4 6 4 5.6% 144 6 26 $ 475,500 $ 450,000 95.9% 198 $500,000 $549,999 25 13.6 1 2 8.0% 220 4 11 $ 529,000 $ 505,000 95.6% 179 $550,000 $599,999 43 21.5 1 1 2.3% 239 3 12 $ 589,000 $ 545,000 93.5% 217 $600,000 $649,999 21 21.0 2 3 14.3% 273 1 6 $ 624,950 $ 592,500 95.1% 123 $650,000 $699,999 21 25.2 1 0 0.0% 107 6 5 $ 689,000 $ 625,000 93.2% 345 $700,000 $749,999 8 0 0 0.0% 194 0 0 $750,000 $799,999 17 25.5 2 1 5.9% 298 2 4 $ 772,500 $ 707,500 92.5% 54 $800,000 $849,999 14 28.0 0 0 0.0% 169 1 3 $ 800,000 $ 785,000 96.2% 73 $850,000 $899,999 15 0 1 6.7% 298 0 0 $900,000 $949,999 6 0 0 0.0% 476 0 0 $950,000 $999,999 9 0 1 11.1% 388 0 0 $1 million + 46 69.0 0 0 0.0% 459 3 4 $ 1,350,000 $ 1,250,000 94.5% 298 Median DOM of Solds
IMPORTANT INFORMATION: Although these reports are beneficial in understanding the general market in the Prescott Area, it is essential that you meet with your real estate professional to study these same figures in your area, as statistics will vary from neighborhood to neighborhood. As you make decisions related to the purchase or sale of a home, it is important that you understand how the current real estate trends will impact your decisions. Your real estate professional is available to help you monitor and interpret them to make sure that you are taking advantage of the current market whether you are selling OR buying.