Market Update
IT'S A BUYERS MARKET
SALES:
The multiple listing service reports 11 homes going under contract
over the last 30 days in Wickenburg. 8 homes closed escrow over
the last 30 days, the average price was $331,625 with a high of $650,000 and low of
$190,000. The average time those homes spent on the market was 257 days. the final sales price was on average $43,375 less
than the asking price.
inventory/
time on the market:
Currently we have 230 homes on the market which is exactly the same
as last
month.
The average time on the market is averaging about 8 months which
is a little higher than the normal of 6 months. The interesting
thing is that there is a real shortage of some types of homes. For
example 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:
More about calculating
values
Prices appear to be down just a little more this month as we see the
most motivated sellers dropping below market to get their properties
sold. 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 a year the number
of sales statewide has caught up to the number of new listings. In
Wickenburg specifically the number of homes on the market has remained
stable for the last couple months. 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.
* When I mention an average I will exclude 2005 which was a most unusual year in Real Estate.
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