“When the rates come down, and they do, there will come a time when you will be able to refinance,” she said.
For those who remember interest rates of the 1980s in the high teens, 7.8% looks pretty good. But compared to just a few years ago, the rate has tripled. For Humphrey, who has owned her house for five years and refinanced it three times to reach the historic low interest rate of 2.25%, her philosophy is: “Marry the house; date the rate.”
“When the rates come down, and they do, there will come a time when you will be able to refinance,” she said.
Humphrey also acknowledges that houses in desirable areas like the Quad Cities are expensive. The average list price in September 2022 was $632,000. Today, it is $701,000, up about 11% year over year.
“That makes me want to choke,” she said. “We have fewer sales today than we did a year ago because money is tight, but value seems to keep going up. Buyers need to shop harder and smarter.”
With just 1,097 residential homes currently available in Yavapai County, down about 20 from this time last year, the real estate market has more than three months of inventory. Six months of inventory, says Humphrey, would be considered a balanced market.
“We are much closer to a balanced, normal market than we’ve been in a long time,” she said, “but we are still in a seller’s market; however, not the frenetic kind of seller’s market we were in one or two years ago.”
For sellers, that means pricing the home based on comparable sales and expecting the home to stay on the market longer. “Some buyers are going to be asking for concessions. Eighteen months ago, that was almost unheard of.”
Prescott still remains the most expensive city in the Quad Cities area for real estate.
“If you want to get the most bang for your buck, go to Prescott Valley or Chino Valley or to Dewey. Today [with many people working from home], the geography doesn’t make that much difference,” said Humphrey. “If somebody comes to town and wants to buy a house for $300,000 to $400,000, there is a high likelihood they’ll be buying a manufactured home as opposed to a stick home.”
No matter the market, Humphrey recommends hiring an experienced, licensed real estate agent, familiar with the cycles and strategies of buying and selling homes. More than 2,500 licensed realtors make up the Prescott Area Association of Realtors (PAAR), where she currently serves as president. QCBN
By Bonnie Stevens, QCBN
Courtesy Photo: Prescott Area Association of Realtors President-Elect Jeanelle Shearer, President Faye Humphrey and Chief Executive Officer Suzanne Westrum accept the Community Service Award from the Arizona REALTORS on Thursday, Oct. 19, in Litchfield Park.
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