Some CA residents may believe those of us who were born and/or raised in Prescott may have a chip on our shoulder for our Golden State friends…this is not true at all. Although there may be some pockets of people who don’t like anyone new moving to town, most residents understand and welcome new neighbors.
Prescott is currently being flooded with buyers from California (Autumn of 2022). A recent buyer looking for a home in the subdivision we currently live sent me an email and indicated interest in the area. Because of the scarceness of homes in this particular community, I informed them they may need to move quickly on the property if their interest was high. They responded rather coarsely with “we don’t do anything quickly…” My thought on that particular and rare attitude is; “then you won’t be living in Prescott.”
The property was priced a tad under $400,000, which is a rarity in the current market. The home will likely not be on the market for more than a day. I’m somewhat familiar with this particular property having visited 5 years ago when it was last on the market for $139,000. So WHAT EXACTLY HAPPENED WITH THE AZ MARKET?
COVID happened and many people simple wanted out of the large metropolitan areas. Millions of people started shifting all over the country, and most of them have been sitting on an investment since the crash of 2008-ish. Prescott’s market was actually pretty perfect in 2018…not too high and not too low. The average selling price for a 3 bedroom, 2 bath home was just around $318,000 at $183 per square foot. In 2019 it jumped to $330,000. Still not too bad. If you remove a 2-car garage, the average price per square foot dropped to $175. In 2021 those prices jumped to $260 per square foot, and in 2022 it jumped to $300. 2023-24 it jumped to $317 per square foot. The real take away is the average listing price in 2022 was $295.00 per square foot…meaning people paid an average of approximately $10,000 over asking price for a typical 1,750 sq.ft. home. This is the market we’re currently in right now. That same house priced at $318,000 in 2018 is selling for $573,000 in 2024.
TIPS TO HELP YOU:
If you moving from California to the Prescott area, here’s a couple things to keep in mind.
1. Be ready to pull the trigger. If you’re sure Prescott’s your destination, have your “ducks in a row”. Have your lending or cash status already secured and documented. If you’re unsure where you want to land, spend some time in a particular town before reaching out to a local agent. You may save everyone some time. If you’re visiting Prescott, do yourself a favor and stay at least one night within walking distance to downtown. Book well in advance, rooms are scarce for last minute decisions.
2. Agents are very busy currently, especially the good ones. If you’re driving to town to “look around” and “get an idea”…feel free. However, you need to understand any home you look at will likely be gone by the time you return home with multiple offers. This is the current market for any home under $500,000. If you’re in the $500k – $750k range, you may have a few weeks. If you’re over $1-million, the average days on market is two weeks.
3. Find a good agent. Some of us are doing dozens of transactions per month and we want to help you…Help us do just that. We know what to look for and how our market is flowing. We know how many days on the market an overpriced house will sit before dropping its price. Be ready to adjust quickly.
4. If you need to sell your current home in CA to buy in Prescott, please don’t waste anyone’s time by believing a seller will accept a contingent offer…they simply will not. An imaginary line is forming at the door with cash, full-price, or over full-price offers right behind you. Have your home under contract, and completely through the inspection and appraisal period, or be willing to waive those contingencies with your offer. This means if you make an offer, and the home you wish to purchase does not appraise, you’ll be responsible for coming in with the cash to close the difference. Once you’ve jumped through those hoops with your current sale, then you’re ready to make offers.
5. If you’re looking for future investment, let’s say to retire in a year or so…let your agent know up front. At this stage viewing properties is a largely irrelevant exercise, instead have your agent tour neighborhoods and take good notes. If you really like a particular area, we’ll help you find the right home when the time comes.
My wife & I have made some dear friends over the years who were California residents. We’ve embraced many with open hearts and with some with built life-long friendships. We hope our next adventure is with you and your family…and we sincerely hope these honest approach helps you get on the right path whether you’re a veteran home-buyer, or it’s your first time.
Posted in: Moving to Prescott, Prescott, Prescott Valley
© Matt White - REALTOR® |