A friend of mine recently attended a Conference sponsored by Charles Schwab.  James Smith, Chief Economist with Parsec Financial Management presented a program entitled "The U.S. Housing Market: Better Times Ahead" .  In his presentation Mr. Smith brings up some very interesting points regarding home ownership in the United States, the demographics of home ownership and what these statistics signal for the future.

From 2004 through 2006 home ownership rates ran about 69% with a slight downturn in 2007 to 68.4%.  Many housing experts believe that due to U.S. demographics and mobility habits of Americans a ceiling of approximately 75% is realistic.  Mr. Smith looked at how home ownership rates varied by age group, the lowest rate of home ownership was among people under 25 years old.  This group had an ownership rate of 24.8% in 2006.  There is a sharp increase in ownership in the 25 - 29 year old group, to 41.8% and a further increase to 55.9% in the 30-34 age group.  Home ownership peaked in the 70 - 74 year old age group at 83% followed closely by 82.4% ownership in the 65 - 69 year old group and 81.5% in the 60 - 64 group and 80.4% in the 55 - 59 year old group.

With baby boomers making up 77 million of our 300 million population, the home ownership rate should continue to increase for years to come.  Baby Boomers (those people born in the U.S. between January 1, 1946 and December 31, 1964) according to Mr. Smith, have changed most other aspects of life in the U.S. as they have aged, so it shouldn't be surprising that their impact on the housing market has been, and will continue to be, enormous.

These home ownership rates should continue having a large effect on the Prescott area.  Many of those individuals in the high ownership groups are retirees looking for the small town atmosphere and mild climate that the Prescott area offers, so I agree with Mr. Smith, The Prescott Area Housing Market will see Better Times Ahead!!

 

As you drive around town you will see preparations being made for the Courthouse Lighting scheduled for December 1st.  If you have not experienced the lighting, it is worth the trip.  The traditional reading of the Christmas story, Christmas carols on the Courthouse steps and the lighting of the Square.  If you can't make it to the actual lighting, the lights stay up through the New Year.  In addition, Prescott Valley sponsors the Valley of Lights.  Drive through Fain Park and enjoy the Holiday light displays.

Check the links below for more information on these and other Holiday events.

http://www.cityofprescott.net/visitors/

http://www.pvchamber.org/index.cfm?pid=3

 

I have been watching the videos done by TurnHere Films on Inman Stories and really felt they were doing a great job in conveying a strong company message in a very clear and professionally produced video.  So I decided to take the plunge and couldn't be happier with the results.  TurnHere was great to work with, very professional and produced a great product.  We have been including a link to our video in the signature of all of our e-mails, linked it to our web site and have posted it wherever possible on the net.  If you are in the market for a quality company video, I would recommend working with TurnHere.

HELP-U-SELL PRESCOTT, ARIZONA VIDEO

 

Help-U-Sell of Prescott... Full service. Big Savings. Your experts next door. View our video to learn more about the Prescott area and Help-U-Sell of Prescott.

On Thursday I returned from the annual Help-U-Sell Conference in Las Vegas. You always come back from those meetings pumped up and ready to get back to work.  We had some great speakers, Steve Murray, the editor of Real Trends, Allan Dalton, President ans CEO of Move, Inc and REALTOR.com, John Featherston, President of RIS Media (publishers of Real Estate Magazine) and Jamie Clark an explorer of over 40 countries, author and inspirational speaker.

It is reassuring to know that these extremely bright, hard working professionals are the voice of our industry.  They are extremely well informed regarding the issues that face our industry and embrace the changes that we face in the future. 

The consensus is that the industry although going through a slow down, the fundamentals are still strong, interest rates are good and unemployment remains low. 

The internet remains the big issue when it comes to marketing your properties, over 80% of buyers are now using the internet when searching for a home.  It is more importnant than ever to have increase your presence on the internet. 

Jamie Clark was the highlight of the conference, he told the story of his pursuit to summit Mount Everest.  The adversity that he faced, the rejection (it took 3 attempts before he succeeded) the incredible sense of accomplishment, the passion.  If we all had the passion for what we do that he has, we could not do anything but succeed.  I learned the importance of being prepared (I was a Boy Scout, I should have remembered that), planning, dedication, enthusiasm and love of what you do.  We need to be passionate about what we do, be proud of our profession and have the desire to succeed.

 

My wife and I were out in the forest last weekend and decided to stop by the Lynx Lake Marina for a bite to eat and a cold beer after a short hike.  I hadn't been to the store in a number of years and was pleasantly surprised to find a great little restaurant.  On Friday nights they have a fish fry and on Saturday evenings you can enjoy authentic German food, like my grandmother used to make.  You can enjoy a quiet meal and take in the sites of beautiful Lynx Lake.  Next time you are in the area, stop by, you will enjoy the experience.

Nestled in the rolling hills east of Williamson Valley, this premier subdivision is centrally located in the Tri-city Area, literally minutes from beautiful downtown Prescott. The stunning 360 degree views include Prescott's Granite Dells, Granite Mountain, Bill Williams Mountain, the San Francisco Peaks and Mingus Mountain. The climate is mild all year round and the atmosphere is luxurious and peaceful.

With Pinon Oaks, you can have the best of all worlds.  The peaceful serenity and quite beauty of the surrounding area yet, you are close to all the comforts and amenities of the city.  The nearby amenities of the city include: shopping, medical/hospital (both public and V.A.), outdoor and indoor recreation, and Pinon Oaks is within close proximity to a golf course.  City utilities are available and include, water, sewer (no septic or well digging needed), maintained streets, cable TV,  telephone, gas, and electric.

Another unique feature of Pinon Oaks is that it does not have HOA (Home Owner's Association) fees.  So you are free to enjoy the beauty of an upscale community without the cost.  Although there are no HOA fees, there are CC & R's that are set in place to protect resident's property values. 

If you would like more information on Pinon Oaks or other Prescott area Communities, please e-mail or give me a call.

The prestigious community of Yavapai Hills sits among the rolling hills and valleys of, what once was the Bar Circle A Ranch. Many of the custom home sites are surrounded by acres of open space, quiet green belts and spectacular views. This setting allows wildlife to continue to thrive. All home sites are fully improved with city maintained streets and sidewalks and underground utilities.

Yavapai Hills is conveniently located within the city limits of Prescott, just minutes away from shopping and services of both Prescott and Prescott Valley. With the central location, residents have easy access to miles of hiking, fishing on area lakes or dinner downtown. Residents can also enjoy being a part of an active community.

For information on this or other communities in the Prescott area, give me a call.

 

A look back at 2006 and 2005 and what it means for 2007.

HOME SALES
	2005	VS	2006	% Change
Prescott
All closed sales	1442		1085	-25%
Average sales price	$354,519		$390,378	+10%
Median sales price	$325,000		$350,000	+7.6%
List to Sell %	98%		96.5%	-2%
Average days on mkt.	103		126	+22%
Prescott Valley
All closed sales	1123		797	-29%
Average sales price	$226,531		$238,854	+5.4%
Median sales price	$225,000		$234,000	+4%
List to Sell %	98.6%		97.5%	+1.1%
Average days on mkt.	80		112	+40%
Chino Valley
All closed sales	414		302	-27%
Average sales price	$211,604		$253,362	+19.7%
Median sales price	$201,900		$240,000	+18.8%
List to Sell %	98.2%		97.1%	-1.1%
Average days on mkt.	114		125	+9.6%

Inventory of homes for sale have leveled off over the past 4 to 6 months, inventory of land for sale continues to rise (possibly less builders buying up inventory).

Rates continue to remain very competitive (30 year fixed about 5.8%) and sellers seem to be adjusting their price.  This could stimulate sales later in the year.

 

I am a firm believer in the motto "some see the glass 1/2 empty, and others see the glass 1/2 full".  I choose to see the current market conditions as the glass 1/2 full.  Interest rates are still low when compared to recent history, prices continue a slight decline or are stabilizing, buyers are in the market and sellers are getting more motivated.  That sounds to me like a good time to be in the market. 

For those motivated sellers, price your home competitively, stage your home so it is ready to sell and make your home as easy to view as possible, there are enough unrealistically priced listings on the market to really set yours apart from the rest. Listen to what your agent has to say, they are trying their best to give you the advice necessary to sell your home.

Buyers, now is the time to seriously consider purchasing your next home.  Sellers are motivated, rates are good and there are a lot of choices in your market.  Get pre-qualified for your loan, find a real estate professional that provides remarkable service and that you trust and employ them to assit you in your search.

Motivated sellers, good economic conditions, plenty of choices.... Sounds like opportunity knocking!!