Provided by the Prescott Area Association of REALTORS ®
Prescott – Residential home sales in the Quad Cities increased 2.3% year-over-year in 2021 for a total of 4,823 homes sold according to the Multiple Listing Service of the Prescott Area Association of REALTORS® (PAAR). Homes spent just 11 days on the market last year – half the time it took in 2020 to sell – and continued to fly off the shelf all year to create one of the fastest-moving markets historically for the area.
The median price of a home sold was $417,615 which is 22.7% higher than in 2020. This breaks down to a median of $242 per square foot. Only about 9% of the residential sales in the area were homes priced under $200,000 while homes costing between $200,000 and $400,000 made up 37% of the sales. Homes priced between $400,000 and $700,000 accounted for about 40% of the area’s sales.
Increased demand for homes caused sales in the higher price bracket – those costing over $700,000 – to experience a considerable jump and make up 14% of the sales in the Quad Cities, twice as many as in 2020. In fact, the number of homes costing over $1 million in the area increased a whopping 165% for a total of 175 sales, compared to 2020’s 66 sales in this price range.
“Supply chain disruptions for building new homes and labor shortages have hindered bringing more inventory to the market,” said Dr. Lawrence Yun, chief economist for the National Association of REALTORS®. “Therefore, housing prices continue to march higher due to the near record-low supply levels.”
Sales in the individual areas contributed to this overall growth with the largest increases in Dewey-Humboldt and Chino Valley. Each area experienced a 7% increase in total residential sales for the year. Sales in Prescott remained almost the same as 2020 with only nine fewer homes sold in 2021 than in 2020, while sales in Prescott Valley dropped by just 2% year-over-year.
The largest increases across the board occurred in land sales with every area except Prescott Valley reporting between a 20 to 24% increase year-over-year. Prescott Valley reported a 4% increase. The biggest rise in land sales occurred in Chino Valley with a 24% year-over-year increase for a total of 118 sales.
Other large increases in the residential market occurred in sales of manufactured homes. Overall, there was a 17% increase in these types of sales, with the most in Dewey-Humboldt, which had a 25.7% increase over 2020.