Market Update
IT'S A BUYERS MARKET
SALES:
The multiple listing service reports 16 homes going under contract
over the last 30 days in Wickenburg. This is among the best 30 day
period we have had in quite a while. 11 homes closed escrow over
the last 30 days, the average price was $289,990 with a high of $885,000 and low of
$105,000. The average time those homes spent on the market was 138 days. the final sales price was on average $23,800 less
than the asking price.
inventory/
time on the market:
Currently we have 230 homes on the market which is down 7 from last
month.
The average time on the market is averaging about 8 months which
higher than the average of past years, which as been a little over 6
months. What is interesting is that there is not a good selection
of some types of homes despite the number of homes on the market.
We have a real shortage of newer homes on larger subdivision lots say
between 1/4 and 1/2 acre, and also have a shortage of the more
affordable horse properties especially under $300K
PRICES:
For the most part prices remain fairly stable. There have been
some small drops over the last 6 months, but only a percent two. I
do want to point out that not all prices are down.
Most homes under $250K are actually up slightly, with the exception of
Northridge Villas, which are down.
So everyone wants to know when we will hit the low point? Well one big indicator to look at is the number of new listings on the market versus the number of listings sold. This month is the first time in about year that the number of sales statewide has caught up to the number of new listings. In Wickenburg specifically this is the first time in a long time that the number of listings has dropped. Another indicator I am watching is the media. The media has finally backed off on the negative and is now focusing more on the positive attributes of the market we are in. The reason I look at the media is because of it's influence on buyer confidence. So I see that buyer confidence is up, and along with that sales are up. So I would say that we have already hit the low point in many parts of the state, but in Wickenburg Specifically I think we are just about to reach that point if we have not already.
Expectations:
My expectation is that things are going to stay about the
same at least through 2008. I expect the number of homes on the
market will still climb further, and the number of sales will remain
steady.
So if you are seller in the Wickenburg market the competition will remain tough, and there will be little chance of selling a home that is over priced. For buyers interested in Wickenburg, 2008 is fantastic year to buy. Both prices and interest rates are low.
Land:
The demand for land has been much lower than normal of late even
though the availability is quite good. I attribute primarily to the asking prices of the land
that is on the market. The asking prices of land are actually higher in
many areas than they were in 2005. Looking on the bright side we have
seen a number of price reductions, and still continue to see
new listings to the market. So I wouldn't say that the values of land
are dropping, just that the asking prices are falling back to reasonable
numbers, that will in many cases still be comparable or even higher than
the banner year of 2005.
Summary of data from past market updates
* When I mention an average I will exclude 2005 which was a most unusual year in Real Estate.
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