Sharp Declines In Home Bidding Wars

If you have been looking to buy a home in the past few years and perhaps even put in a few offers on homes, then you know it has been a buyer eat buyer real estate world out there!

Homes would hit the market and instantly have multiple offers on them (if they didn’t already have offers on them before technically even being on the market). There were so many people looking to buy that the market had become incredibly competitive for buyers, yet also incredibly good for sellers who had their choice of highest and best offers to pick from.

You can imagine how these situations would be extremely frustrating for buyers who would be constantly outbid or their highest and best wasn’t as good as someone else’s highest and best.

Well, according to the National Association of Realtors, the amount of competition in Real Estate as we come into these Spring and Summer seasons will mostly likely be seeing a decline.  “There will likely be less competition for home buyers this spring—a widely reported index from Redfin shows a significant decrease among real estate professionals reporting bidding wars this month, compared to a year ago. Only 16 percent of offers written by Redfin agents on behalf of their customers in the first three weeks of March faced a bidding war, down from 61 percent a year ago, according to the brokerage’s index.”

This is good news for buyers because your chances of getting into a bidding war when making an offer on a home have sharply declined. This means you don’t have to come in at the very tip top of your home buying budget just to have a hope and a prayer of getting the home you have your eye on – you could possibly make a more reasonable bid and have it accepted because there isn’t another buyer breathing down your neck.

In Phoenix, the amount of offers that faced competition was at 41% in March of 2018. That number has gone down to just 14% calculated in March of 2019. Prescott is a lot different than Phoenix market wise, but agents here have noticed a decline in bidding wars as well, which means if you have been wanting to buy in Prescott, Arizona, now might be the time!

If you are looking to buy a home, or even sell a home in Prescott, you should give us a call! Working Real Estate in the community for the last fifteen years, we have a lot of experience and would love to help you in your next Real Estate transaction. 928-771-1111.

 

Easter Weekend in Prescott, Arizona!

Today is Good Friday and as we end our week we look forward to a weekend of fun and festivities celebrating the Easter holiday on Sunday.

If you’re looking for some classic Prescott events to attend to help you celebrate the weekend, our town, of course, does not disappoint.

Town Events:

On Saturday April 20th there will be an Easter Egg Hunt at Prescott Mile High Middle School starting at 11am and going through to 1pm. The school is located at 300 S. Granite Street, Prescott, AZ 86303. The Easter Egg Hunt will be fun for the whole family, especially your little ones as they search for colored eggs for this traditional holiday event. Once the Easter Egg Hunt is over, there is plenty to do with the event being so close to downtown. Grab a drink at one of the local coffee shops, or perhaps a dessert snack at an ice cream shop like Frozen Frannies. Enjoy a bite to eat at one of the many delicious restaurants in the downtown area with food so good it’ll make your mouth water. The weather will be seventy five degrees and sunny, the perfect day to be outdoors and enjoying the beautiful Prescott Spring weather.

Another Egg Hunt event going on in Prescott will be on Sunday April 21st and is called the Eggstravaganza. Taking place at Heritage Park Zoo near Willow Lake (address: 1403 Heritage Park Road, Prescott, AZ 86301), the event is free after paid admission to the zoo. Adults ages thirteen years and up cost $10, and children ages three to twelve cost $6. The gates open at 10am and there is a schedule for the egg hunt based on age to make sure even the youngest of participants get some eggs and get to enjoy the event. Ages 0-3 years old start at 11:30am. Ages 4-6 years old start at 12:30pm. Ages 7-9 years old start at 1:30pm. Lastly, ages 10-12 years old start at 2:30pm. There will also be special Easter treats for the animals, a scavenger hunt, concessions, raffle, and much more! Remember to bring your children’s Easter Baskets so they can collect eggs on the lawn (note: the eggs are unfilled for the health of the animals – after the children collect eggs, they turn them in for a goodie bag filled with candy and toys).

Worship Events:

For those who celebrate the Easter holiday not only with Easter Egg Hunts, but also as the remembrance of Jesus Christ dying on the Cross and rising again, there are events for you too! With numerous churches around town, there are plenty of Easter service times to choose from to celebrate the holiday with your family. Two of the biggest churches in town, Prescott Christian Church and Heights Church, have Easter service times for your needs. If you’re looking for options on Church service times, Prescott Christian is the place for you. With services on Saturday at 4pm and 5:30pm, and on Sunday at 9am, 10:30am, and 12pm, you are sure to find a time that suits your busy Easter schedule this weekend. They even have a café with coffee, donuts, and tea for you to sit and enjoy your Easter evening or morning.

The Heights church has a few less services with only two on Sunday, but one of those services is a giant festivity at Watson Lake. The first one is at the Heights Church starting at 5:45am, which is their traditional “sunrise” service that takes place outside at the giant cross on their property. The second one begins at 10am at Watson Lake Park with the entire recreational area being rented out for the event. Everything is free, including parking and food. There will be coffee, breakfast snacks, and lunch. After service, enjoy the meal and bring your own chairs/blankets for seating in the gorgeous weather.

 

Wage Growth Vs. Home Price Growth

Living in Prescott, or perhaps anywhere in the United States, something you may have noticed is the difference in wage growth verses the difference in home price growth.

Being a Real Estate Agency in Prescott, this is something we have definitely noticed as our market has continued to grow healthily over the last few years. With such quick growth in the housing market, it would really be hard for wage growth to keep up.

Home prices can grow at any time they want. From one month to the next, the market can change and prices can go up. Even though the difference might not be substantial, or perhaps even noticeable, there is steady growth in home prices throughout the year (depending on the housing market at that time).

Wage growth, however, tends to be much slower. If you think about it, growth in wages happens maybe once or twice a year, if that. Being an employee, you may get a raise at the end of the year, or a raise when you are promoted to a higher position, but that’s not nearly enough to keep up with the rate of growth of the current housing market.

On top of that, Prescott has been known to be a very competitive job market, meaning employers can start a position off at a lower salary knowing that someone will be eager to fill the position with hopeful raises and bonuses later on down the line. Speaking of bonuses, many companies often don’t raise your salary at all, rather you get a “Christmas bonus” at the end of the year, meaning home price growth has gone up all year round, yet salary growth has remained stagnant. It all depends on the company you work for and the industry you work in.

To further show this fact, check out this quote from the National Association of Realtors (NAR), “Based on the headlines, home prices outpace wage growth. Indeed, in the last six years home prices increased 47 percent while wages rose 16 percent.”

After reading all of that, it may feel discouraging or make one think it would be impossible to afford a home when the rise of wages isn’t keeping up with the rise of home prices. However, what NAR found is that doesn’t appear to be the case.

“Nationwide, the monthly earnings of a typical employee rose by $530 to $3,784 in the fourth quarter of 2018 from $3,256 six years earlier. In the meantime, the monthly payment increased by $354 to $1,114 in 2018 from $760 in 2012. Thus, although home prices increased nearly three times more than wages (in percentage points), homebuyers needed to spend less than their salary increase for the higher mortgage payment. Noticeably, homebuyers needed to spend nearly two thirds of their salary increase (above the 30% rule) for the higher mortgage payment.” – NAR Economist’s Outlook Blog.

This is good news! It means that even though housing prices have grown far more than wages, wages have still grown enough to keep up with the price of these higher mortgages, only costing consumers two thirds of their salary increase towards their house payments. That may still seem like a lot, but at least it isn’t equal to or more than, which means housing based on current salaries is still somewhat affordable.

The best thing to do when thinking of buying a home, and wondering what you’d be able to afford on your salary, is to connect with a local lender. This is the very first thing you should do before even beginning to look at homes. That way you don’t’ set your eyes on something you can’t afford and have your hopes dashed. They will help you determine what your price range is based on your income and get you moving towards your ultimate goal: becoming a homeowner.

Need help finding a lender? Call us today and we can help! Working in the Prescott area for over a decade, we have a lot of experience with all the local companies and can help you find the right fit for you. 928-771-1111.

Listing Feature – 3555 Friendly Meadow Road

This is our amazing listing on 3555 Friendly Meadow Road in Williamson Valley Ranch. Right away, you are taken aback by the breathtaking views of Granite Mountain and ”The Indian,” which are captured from this rambling main level living family home.

Rural living offers a sense of space around you with only a 20-30 minute drive from downtown, giving you the feeling of being away from it all, while still being close enough to downtown to enjoy all of Prescott’s festivities. A large and fabulous deck with spa gives you a glorious outdoor living space you can enjoy all year long, taking in the views and the big night sky.

Approximately 3,557 square feet, the home includes five bedrooms and four bathrooms. The master bedroom is complete with a separate exit onto the expansive deck and plenty of windows to help you take in all of your wonderful views. The master bathroom includes dual sinks, a separate shower and jetted tub, and a walk in closet.

A spacious eat-in kitchen features granite counters, an island with breakfast bar, a gas range, plenty of pantry storage space, and an adjacent seating area with Kiva fireplace. Next to the kitchen is a cozy sunken living room that offers a more intimate gathering space when entertaining guests, or a little privacy to sit aside and read a book, or whatever you like.

The lower level living is a walk-out basement complete with its own family room and a full second kitchen for multi-generational living. It includes plenty of storage space to put all of your treasured items, a separate exit to outside, three bedrooms, and a large bathroom with three sinks to accommodate all those in this living space.

Not only does this home have all the living space you need, but it also sits on three acres to accommodate any growing your family will do, including horses and farm animals! The home has a brand new well plus storage tank. The well and the storage tank holds 3,400 gallons at a time and pumps 725 gallons per day. A typical family of 4 only uses 350 gallons per day.

Interested in this home? Call our office today for a showing appointment! 928-771-1111. Interested in homes similar to this one? Still call! We’d love to help you find the right home for you!

How AZ Realtor Association Advocates For You!

Below is a video posted recently by the Arizona Realtor Association. A little cheesy and full of realtor humor, but also full of information on just how Realtors have fought for the people over the years.

“The Arizona REALTOR® Party saves you $1000’s every year by advocating for you and our 50,000 REALTORS®, your clients, and property owners.”

Enjoy!

Do People Think It’s a Good Time to Buy/Sell a Home?

According to the National Association of Realtors Home Survey performed in March 2019, most people would agree that now is a very good time to buy or sell a home.

  • “Fifty percent of renters compared to seventy-five percent of home owners think now is a good time to buy.” Only thirty-five percent of people believe that now is not a good time to buy.
  • “Those who are in the West (77%) are most likely to think that now is a good time to sell a home.” Only thirty-one percent of people believe that now is not a good time to sell your home.

For some more of the statistical facts and figures they found, visit the website article here.

As Realtors who work in the Real Estate business every day, we’d have to agree with what others believe as well, that now is a good time to buy or sell a home (at least here in Prescott, Arizona). We aren’t just being biased; this comes from our own experience and knowledge of the market right now.

Even though the market is projected to take a slight dip in 2020, it will be nothing near the crash we had over ten years ago, in fact it won’t be a crash at all – hence the word dip.

So, what will happen after the dip? The market will continue to go back up. With a good economy and competitive market, there’s really no waiting to be done here. “I’m waiting for the market to drop,” or “I’m waiting for the market to be less competitive.” Mortgage companies and realtors alike will tell you this isn’t likely. While you might get lucky and find a small pocket of time that’s “just right”, the reality is that the best time to buy is now so you can start building equity in your new home, rather than waiting and watching as the prices just continue to go up rather than down.

What do you think? Is now a good time to buy or sell a home?

Why Should You Use a Real Estate Agent to Buy or Sell?

With websites around today such as Realtor.com, Trulia, and Zillow, many buyers and sellers tend to think, “Who needs a real estate agent?” The answer is everyone!

Even though these websites are extremely user friendly and can make the whole real estate process seem like a piece of cake, the truth is there is so much more that goes into a real estate transaction other than finding a home, or selling your home.

While it might seem like we are being a little biased on the topic, hear us out! This is probably the biggest financial decision/investment you will ever make. That’s a big deal! Here are some reasons why we believe it is so important to use an agent rather than try to venture the industry of real estate alone.

Real estate Agents have a ton of experience: “Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Realtor is trained to speak that language fluently,” notes Realtor.com. This isn’t exactly an end all reason to use an agent, but wouldn’t it be nice to be working with someone who knows what they’re doing rather than scratching your head in confusion and having to look things up at every turn? What if you miss something, or overlook something? Well, an agent is paid to avoid exactly that! They are also very familiar with the dozens of lengthy contract forms you will be required to sign both as a buyer and a seller, and help you navigate those wordy jungles so you fully understand what it is you’re signing exactly. Any mistake could end up costing you financially, legally, and emotionally. Real estate agents work hard to prevent that.

They have access to all the best home searches: With websites like those mentioned above, realtors and the public alike have access to them, and there are so many places to look for homes on the internet. However, realtors have even more! They have access to the MLS (Multiple Listing Service), which every home has to be listed on except FSBO (For Sale By Owner) – see what we mean about the acronyms? Realtors also often have some homes not yet on the market they could show you, giving you a jumpstart on any new listings. Good local realtors also know their areas better than anyone and will be your best resource for finding a home in the neighborhood and price range you want.

They’re master negotiators: When looking to buy or sell a home, you better believe there will be some negotiating involved in today’s real estate market. Depending on the home, there could be a lot of competition, all cash offers, bidding wars, and more. Do you want to try to traverse these waters alone, or would you rather have a knowledgeable and experienced agent at your side that has dealt with these types of situations before? Your realtor will always have your back, fight for you, and look out for your best interest to make your transaction as smooth as possible.

They know everyone: After years in the real estate business, real estate agents know the best people when it comes to buying and selling homes. Mortgage companies, real estate attorneys, Escrow companies, home inspectors, and the list could go on and on. Real estate agents will know who’s the best, who they’ve had trouble with in the past, and everything in between. This expertise is priceless considering a bad home inspection could cause a home to fall out of contract, or a mortgage company that isn’t on the ball could delay closings.

They have to stick to a strict code of ethics: Not every licensed real estate agent is a Realtor. A Realtor is an agent that also belongs to the National Association of Realtors (NAR), which is the largest trade group in the country. To be a Realtor with NAR, you have to adhere to a strict code of ethics that not only protects the agents, but also protects the buyer and sellers from any agents looking to take advantage.

They wear a lot of different hats: A Realtor is a parental voice, data analyst, therapist, expert, and so much more. They do a lot of work to earn their commission even though it might not always look like it. They are constantly looking for new homes for their buyers and using their own money to market their seller’s homes. They drive around neighborhoods and towns with you to make sure you find exactly what you are looking for. They do a comparative market analysis (CMA) on your home to see what you could possibly sell it for to make sure you are getting the most out of your investment. They are texting, calling, and e-mailing at all hours of the day. This is not a 9-5, Monday-Friday job. It is 24/7 all week long job because your real estate agent wants to be there for you!

We hope some of these reasons make sense and that in your next real estate transaction, you’ll consider using an agent.

If you’re looking for an agent’s assistance now, or have any questions about what it looks like to use an agent, give us a call. We’d love to help! 928-771-1111.

Prescott Regional Airport

If you haven’t yet had the chance to use Prescott’s very own airport, you’re missing out. Conveniently and centrally located off of highway 89 and 89A, the airport is close to nearly all residence in the Prescott, Prescott Valley, Chino Valley, and Williamson Valley areas. This makes it far handier for Prescott area residents to travel to California and Colorado than driving down to Phoenix and using one of their airports, which adds hours of time onto your travel, not to mention giving extra time to get through all that airport security and get to your gate.

Prescott Regional Airport recently released some facts that sum up their first six months of air service. The following are statistics from the first six months of Essential Air Service (EAS), provided by United Express, operated by SkyWest Airlines.  The service began on August 29, 2018 and it flies daily to Los Angeles and Denver.

  • The end of February marked the first six months of commercial air service with United Express/SkyWest Airlines.
  • Typically with airlines, January and February are two of the lowest months for passenger traffic after the holidays; however, PRC hit a 63.9% Load Factor (LF), with 1,982 passengers in January and a 63.8% LF, and 1,628 passengers for February.
  • Currently PRC is 6,390 passengers away from hitting 10,000 enplanements for calendar year 2019 to retain our Primary – Non-Hub status.
  • Despite snow cancellations in February, PRC is still on track to hit 25,000 enplanements in 2019.

On top of that, here are some additional highlights and data for the past six months since SkyWest started service in September:

  • 12,347 revenue departing passengers (average load factor of 71.47%).
  • 12,241 revenue arriving passengers (average load factor of 70.92%).
  • 24,588 total revenue passengers thru PRC (average load factor of 71.24%).
  • Operated 686 flights (arrivals and departures) out of 698 scheduled – 98.2% completion rating (the majority of cancellations being due to weather related safety issues).

Flights for spring break were nearly full to both Los Angeles and Denver!  Additionally, projections based on current booking for March-July continue to be strong.

“By all accounts, Prescott Regional Airport has continued to perform well above expectations,” said Dr. Robin Sobotta, Airport Director.  “We continue to see strong numbers of enplanements (people boarding in Prescott, and deplanements, people getting off in Prescott.”

If you live in Prescott and are flying to California or Colorado, flying out from Prescott Regional Airport might be something you want to look in to. Who knows, if the airport keeps going strong, perhaps they’ll add even more destinations to and from Prescott?!

To book a flight from Prescott, please visit United’s website at www.united.com, on the United App, or by calling Reservations at 1-800-864-8331.

Listing Feature – 1295 Coyote Road

This is our gorgeous new listing in Hidden Valley Ranch on 1295 Coyote Road. Built on a corner lot, this home backs to Hidden Valley Ranch common area and the seasonal Banner Creek.

Walking in the front door, you are welcomed in by high vaulted ceilings complete with beams. This home was originally built as the builder’s own home, which tells you the time and care that went into creating it. The Great Room and formal dining areas in this home are expansive and offer a lot of natural light through the Anderson wood windows complete with plantation shutters.

Making your way into the kitchen, you find that it is a large open space, inviting to all your future guests. With a wall oven, desirable kitchen island with cook-top, granite counters, and plenty of counter and cabinet storage space, you will be able to make this kitchen your own.

Opening up into the family room, it boasts built-ins and a grand hearth with a wood burning fireplace. This room is perfect for relaxing and getting cozy with those you love most.

Rounding out the main level are one bedroom, one bathroom, and one laundry room. On the upper level you have the very spacious master suite bedroom with dual vanities and a jetted tub. Three more bedrooms take up the upstairs living with a full bathroom, laundry chute, and a walk-in linen closet.

Outdoor amenities include a two and a half car garage, a covered back deck and grassy yard to enjoy all seasons, and a separate fenced in dog run for your fur family.

Quick Facts:

  • $525,000
  • 3,023 Square Feet
  • 5 Bedrooms
  • 3 Bathrooms
  • Grown Ponderosa Pine Trees
  • Subdivision Includes: Club House, Community Kitchen, Membership Included, Outdoor Pool, RV Parking, and Tennis Courts.
  • Views of the Creek and Pines
  • New Exterior Paint 5 Years Ago
  • 14 Year Old Roof of a 40 Year Shingle

This home is move-in ready and a blank slate for anyone wanting to do a little updating and some fresh coats of paint to make it their own.

Interested in seeing this home? Call our office today at 928-771-1111. We’d love to assist you with this home, or any other home you might be interested in!