Prescott Real Estate Sales Stats - Year End Totals!

Dated: January 13 2022

Views: 19

Inventory is one of the biggest challenges in the current housing market. There are more buyers searching for homes, and less sellers looking to list their homes, so it tips the market in the Sellers' favor.

According to the National Association of Realtors, the total housing inventory is down by 18.8% compared to this time last year. The new housing supply is not keeping up with the current demand for a variety of reasons. If you look at the graphic below for Prescott's local market, it's obvious reviewing the numbers that less inventory pushes prices up.

1. New Construction Has Slowed Down

Since the housing bubble burst in 2008, we’ve seen a growth in population and demand, but new construction hasn’t been able to keep up. The lack of new and available residences has only been amplified by delays caused by COVID-19 as well. 

While a recent surge of new construction due to reopenings has eased some of the pressure, industry experts agree that builders just simply can’t build fast enough. Limited housing supply has been a concern for many years and COVID-19 has proven that demand will continue to outweigh supply. 

2. Demand is Surging Because of Low Rates

Almost everything housing related, including new home sales, home improvement projects and home prices, are in a V-shaped recovery. 

Amidst the pandemic, the market is seeing some of the lowest rates in years. With current rates hovering around 3.5%, many buyers are anxious to get into the market to take advantage. However, the influx of motivated buyers only further exaggerates concerns over low inventory. 

If you have ANY interest in purchasing a home, whether it's in the Prescott area or else where, interest rates are forecasted to increase, and as we've seen in the past week, they already have inched up.  Last year's lowest interest rate of 2.65% has come and gone!

Call your favorite lender or you can also contact me for a great local lending source who can provide you with several options for loans.

Blog author image

LISA PELLIN

With over 18 years in Real Estate, Associate Broker, Lisa Pellin, is an asset to our professional community. Originally from Southern California, she grew up riding and showing horses competitively f....

Latest Blog Posts

Prescott Real Estate Sales Stats - Year End Totals!

Inventory is one of the biggest challenges in the current housing market. There are more buyers searching for homes, and less sellers looking to list their homes, so it tips the market in the'

Read More

New or Used? Contact me about Prescott's new neighborhoods!

Whether you want a new home or a resale home, we can help.  RV garage?  Got it!  Horse property?  Got it!  Views?  Got it!  But, they go fast, so don't!

Read More