Months of inventory continued to rise both locally and nationally in the month of March, signaling a positive development in the real estate market according to the housing report released today by the Prescott Area Association of REALTORS® (PAAR).
Chino Valley led the region last month with a 450% increase as its months of inventory rose from a miniscule 0.6 months of inventory in February 2023 to 3.3 months of inventory last month. Prescott wasn’t far behind with 3.3 months of inventory recorded, while Dewey Humboldt came in at 2.6 months. Prescott Valley showed only 1.9 months of inventory available at the close of March, due in part to an overall slowdown in new listings for the month.
“Inventory levels are still at historic lows,” said Lawrence Yun, chief economist at NAR (National Association of REALTORS®), in a report. “Consequently, multiple offers are returning on a good number of properties.”
“Now more than ever, market conditions call for an experienced REALTOR® who has top-of the-line training in contract negotiations and can do the exhausting work of sifting through incoming offers,” said M. Faye Humphrey, 2023 PAAR President.
Although the meteoric rise in home prices of the past few years continues to slow, the age-old concept of supply and demand continues to play a significant role in current conditions. With inventory levels far below what many experts would prefer, purchasing a home will still present its own unique challenges in 2023.
“If you see your dream home for sale, call a REALTOR® that knows the local market and start asking questions,” Humphrey stated. “Homeownership is the American dream; it can change lives and create generational wealth. You owe it to yourself to explore every possibility.”
While the increase in months of inventory is a positive market indicator, the data on new listings should be followed closely. March recorded an overall drop in new listings of 2.8% since this time last year, with numbers varying by area: Prescott increased its number of new listings by 19.3% since March of 2022, while Chino Valley’s numbers stayed flat. Both Dewey-Humboldt (down 18.8%) and Prescott Valley (down 34.8%) were in the red, which may cause those regions to continue seeing lower inventory numbers in the coming months.
If you are tempted to get discouraged, just remember that the positive indicators are there if you know what to look for. Median sales prices continue to climb in our area overall, both since this time last year (+3%) and from month to month (+4.1%), although at much more sustainable levels. And if there is one thing the Quad Cities is known for, it is being tough enough to withstand the test of time…in any market.
The detailed reports are available here: https://dashboards.domusanalytics.com/v/PrescottInfographic and https://dashboards.domusanalytics.com/v/PrescottInfographicArea
Editor’s Note: All data is compiled from the Multiple Listing Service of the Prescott Area Association of REALTORS®and includes single-family, manufactured, mobile, modular, condos, and townhouse residential activity in Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt.
