Prescott and much of Yavapai County are part of the “Sun Corridor” (Mega Region) Market Service Area (MSA) demographic. This MSA extends from Nogales to Chino Valley, encompassing Metro Phoenix, Tucson and Prescott areas. Yavapai County is about the size of New Jersey and has a population of just under 230,000. The Sun Corridor MSA is the No. 1 or No. 2 job growth haven in the country, according to many sources.
2020 Market Pulse
Current active residential inventory for the Quad Cities shows just under 700 residential properties for sale (this includes townhomes, condos and manufactured homes). Year-to-date sales (thru Feb. 20) show 369 residential sales. Active listings show an average of 141 days on market with a median list price of $438,000 ($217/square foot), while the 2020 year-to-date sales show an average sales price of $365,000 and 77 days on market. Those sold on average at $189/square foot have a list price to sale price ratio of 98%. Current Absorption rate show less than a two-month supply of homes according to Prescott Area Association of Realtors MLS data.
Year Over Year Review
2019 started off slow, like much of the major MSAs in the Sun Corridor (Phoenix and Tucson Metros). Sales were down 10 to 11% through the end of first quarter, but rebounded in the fall to break even. Winter figures pushed ahead of 2018, albeit slightly. Year over year review:
The market supply suggests it is a “buyers’ market.” Low interest rates continue to be a driving force for financed purchases. Outlook for interest rates suggests at least another year of record-low interest rates. Days on market of homes sold remains around two months of an average market time. “Turn Key” homes that are updated and remodeled sell quickly while outdated homes tend to sit on the market longer as the gene pool of buyers looking for “remodel projects” are low.
Economic Data
Prescott’s workforce enjoyed a 37% higher than average annual income, at $66,639/year, according to SSA, National Average Wage Index. High benchmark for employment of Yavapai County 64,600 jobs (2007) recaptured in 2018 at 64,800 jobs (numbers are not available for 2019). Construction jobs remain in demand for Yavapai County. New construction permits continue to gain steam, although are still way below the high volume of 2006 and 2007.
Yavapai County GPD was just under $9.5 billion, making its economy the 145th largest in the world.
Water Supply
The city of Prescott draws most of its water from the Verde River watershed and purchases much of its domestic water via Extinguishment Credits or “Paper Water Rights.” The city has a lock on more than 16,500 acre feet at its disposal. City water usage was less than 7,000 acre-feet in 2019. The city is well positioned to accommodate growth for its water needs.
The 1,200-acre Jasper, the newest master planned community to roll out in Prescott Valley, has plans for more than 2,400 residences and has one well that produces enough water to provide for more than 3,400 residences.
Airport
The PRC (Prescott Airport) yielded a grant from the FAA for more than $25 million. Those funds are being utilized to build a new terminal. A groundbreaking ceremony was recently held for the terminal and to extend the runway. PRC looks to add multiple destinations for regular service routes once the new terminal is built. Dallas and San Francisco are the likely possible destinations. QCBN
By Peter Medal
Andrea Mauk, Peter Medal and Leslie Nelson are the Principals of the Prescott Elite Team at My Home Group Real Estate. Their offices are in downtown Prescott at 240 S. Montezuma Street, Suite 101. Reach them at 928-597-5151 PrescottEliteTeam.com or PrescottEliteTeam@gmail.com
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