November 27, 2009
The Prescott AZ REO Market has changed dramatically in the last 90 days, but most people don't yet know it. Today if you asked ten random people how home sales in Prescott AZ were, I believe the typical response would be, "slow, declining, poor". But if you asked 10 Prescott REALTORS I know you would get a very different answer.
Earlier this week I held two open houses for my team leader Stephanie Woods. Both houses had just come on the market the night before and both were Prescott area bank owned homes. My expectations were blown away when the first two people through these two homes submitted full price offers just hours after they came on the market!
When ask, "How's the Market?" we usually are asking: Is this a buyer's market or a seller's market? Right now in Prescott we have fallen quickly out of the realm of the "buyer's market" and are now solidly into a neutral market. That is a real estate market with an inventory of between 5 and 7 months of homes available. A neutral market would be a wonderful place to stay, but it doesn't often happen that way. There is a pendulum effect which causes the shift of the market to speed up as the market shifts in the same way a pendulum moves fastest in the middle of the swing, and then slows at the end of each swing.
My observation is that well priced REO properties are selling so fast that it feels like a seller's market. But the regular retail sales can be anywhere between buyer, neutral and sellers depending on price and condition.
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