Good morning, this is Gary Edelbrock. I'm frequently asked how I think the market is doing, have we hit bottom, are we on the upward track. Well, I've asked Pete Weaver his thoughts on that. Pete's the President Elect of the Prescott Area Association of Realtors, and will take office in 2014. (It's basically a 3 year board position - 1 year President-elect; 1 year President; 1 year past President.) Anyway, Pete, thanks so much for sharing your thoughts on our current housing market with our readers, and congratulations on your new position!
Beyond the Bottom: Quad City Housing Report
By Pete Weaver
I have been closely following the housing market in the Quad Cities of Prescott, Prescott Valley, Chino Valley and Dewey / Humboldt for the past several years. It is clear from all the data, that the housing market in these communities hit the bottom in 2011. Beginning in April of this year, there were clear signs that we were seeing an improving market.
In July of this year, I wrote an article titled "Signs of an Improving Quad City Housing Market". The market data at that time indicated that we were entering a healthier period that we had not seen since 2008 when the crash began. Now that a few more months have passed, I believe it is clear that we are definitely in recovery. There are always exceptions, but overall, the data does not lie.
I am always careful not to form an opinion, or make a prediction / forecast until the market data is thoroughly analyzed. My "recovery" conclusion is directly tied to the residential sales data from the Quad Cities of Prescott, Prescott Valley, Chino Valley and Dewey / Humboldt.
The graphs below contain sales data that I used for part of my analysis. In comparing Jan to Sept of 2011 to the same period in 2012, there is clear evidence that the market has finally turned the corner. Additional market data precedes the graphs that back up my conclusion of the housing market recovery in the Quad Cities.
Positive Trends: (over the same period)
- Home sales are up 5.2%
- Distressed home sales (bank owned & short sales) are down 24%
- Normal home sales are up 32%
- Median home sales prices are up 8%
- The supply of homes on the market are down 19%
- New home construction is up in the Quad City area.
- Interest rates today on a 30-year fixed mortgage are the lowest in history at 3.37%, down from July. (Source: Bankrate.com). Qualified buyers will have no problems getting a mortgage home loan in today's market. Most will get processed in 30 days or less.
My Final Thoughts:
There is no doubt in my mind that we are in a period of recovery. All the data indicates that this is true. If you are a buyer that was waiting for the bottom, it's too late, because it happened last year. The good news is that is not too late to take advantage of some great deals. The market is still far below the highs in 2005.
The economy and the upcoming elections could be factors in the future housing market. With that said, it is a great time to buy. It also is a better time to sell. We have entered a much healthier real estate market.
With record low interest rates, much lower home prices and declining inventory, now is the time to consider purchasing a home.
West USA Realty of Prescott
Associate Broker, Certified Commercial Sales Specialist
Realtor, Escrow Specialist & Broker Assistant
928-710-5223 ............Pete's cell
928-710-8054 ............Cindy's cell
www.weaverteam.com ........Web Site