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Real Estate Sales Surge as Prices Change Across the Quad Cities

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The amount of active inventory in the Quad Cities has continued to rise at an impressive rate with the influx of new listings.

The number of homes listed during February in the Quad Cities increased by 13.5% year over year, according to the housing market report released by the Prescott Area Association of REALTORS (PAAR). Last month, a total of 286 homes were listed for sale, compared to 252 in February of the previous year. Across the Quad Cities, the number of new listings increased in each area except Dewey-Humboldt, which experienced a 4.2% decrease in February of this year, compared to last. Prescott Valley had the lowest number of new listings at 94 total, representing an increase of 1.1% from 93 new listings last year. Both Prescott and Chino Valley saw the most substantial growth, with 21.8% and 40% increases, respectively.

The amount of active inventory in the Quad Cities has continued to rise at an impressive rate with the influx of new listings. The area experienced a 32.1% increase in active inventory year over year, with substantial rises in each of the four cities. Chino Valley saw the greatest increase, at 47% with 97 active listings this February, compared to 66 in 2023. Dewey-Humboldt was the runner-up, experiencing a 37.7% increase in inventory with 84 active listings last month, despite showing an overall decline in new listings. Both Prescott and Prescott Valley sustained sizable increases in active inventory, with rises of 28.9% and 30.7%, respectively. As active inventory increased across the Quad Cities, the months of inventory increased simultaneously in each area. The four cities had a combined 4.1 months of inventory available to buyers, having seen a 20.6% increase from the 3.4 months of inventory this time last year. Chino Valley and Prescott had the most months of inventory available, with 5.1 and 4.7 months each. Dewey-Humboldt fell close behind with 4.2 months of inventory, followed by Prescott Valley with 3.1 months.

The median number of days on the market for listings in the Quad Cities during February was 56 days, a 36.6% increase year over year. Despite an overall positive change in the median number of days on market in the four cities as a whole, only Prescott saw an individual increase while Prescott Valley, Dewey-Humboldt and Chino Valley saw decreases. Prescott experienced an astounding 156.7% increase in the median number of days on market for listings, sitting at 77 days last month. The other three cities saw decreases of more than 20%, with Chino Valley’s median number of days on the market being the lowest, at 27 days. The median number of days on market for Prescott Valley and Dewey-Humboldt settled at 54 and 66 days on market each.

In regards to total sales, the Quad Cities experienced a 10.2% increase year over year, a much welcome improvement from January. Each of the four cities saw individual increases in total sales, with the largest upswing being in Dewey-Humboldt, on account of a 33.3% increase. Chino Valley underwent the smallest change, with a 5.6% increase from 18 sales in February 2023 to 19 sales last month. Prescott and Prescott Valley experienced greater increases than Chino Valley, but not nearly as substantial as Dewey-Humboldt, with hikes of 9.4 and 7.2% each. Seventy-four homes were sold in Prescott Valley, followed by 20 in Dewey-Humboldt and 19 in Chino Valley. February saw 206 total sales across the Quad Cities, with Prescott leading at 93 total sales.   

The median sales price of homes in the Quad Cities rose by 3.1% year over year, with only one city contributing to the overall increase. Prescott experienced a 20.4% increase in the median sales price of homes, while the other three cities all saw noticeable decreases. The median sales price dropped the most in Dewey-Humboldt, decreasing 24.4% and settling at $310,000. Chino Valley and Prescott Valley both experienced reductions of 7.7% and 3.7%, respectively, with the median sales price sitting at $360,000 in Chino Valley and $438,200 in Prescott Valley. The highest median sales price of all the cities was $589,000 in Prescott. The median sales price in February for all of the Quad Cities was $469,185.

The housing market has started to take off, with an upswing of sales in February across the Quad Cities. The amount of active inventory has grown immensely, meaning buyers have more options from which to choose. A larger supply of homes paired with lower prices increases the likelihood of buyers finding a house they love and can also afford. Potential buyers will continue to enter the market as they see affordable homes becoming more readily available. A realtor with expertise of the local market can guide buyers in purchasing a home that fulfills all their needs. QCBN

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.

By Jeanelle Shearer

Jeanelle Shearer is the 2024 PAAR president.

About PAAR: The Prescott Area Association of REALTORS® (PAAR) is the trade association representing more than 2,000 REALTORS® serving the greater Quad Cities area. Established in 1944, PAAR’s mission is to advocate for private property rights, and provide its members with resources to foster their business success. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS®.

Real Estate as an Economic Indicator

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In our local Quad Cities area, we’ve been fortunate to experience a resilient and diverse housing market.

For many, owning a home is the epitome of the American Dream. It represents a sense of stability, provides a place to raise a family, and is an investment in one’s future. Homeownership can offer the potential for wealth accumulation through property appreciation and the opportunity to build equity over time.

This quintessential dream does not stop there. It is deeply connected to economic security and, in fact, real estate is often cited as a key economic indicator. The housing market’s performance reflects broader economic trends such as consumer confidence, interest rates and employment levels. When the real estate market thrives, other industries follow, making it a stabilizing force in the economy. Unlike other sectors that are more susceptible to cyclical fluctuations, real estate often maintains its value over time. During economic downturns, property values may dip but generally recover in the long run, providing a cushion against severe economic shocks.

According to an economic impact report released this year by the National Association of REALTORS (NAR), in Arizona, a single home sale in 2022 had a total economic impact of $143,400. This means real estate related industries as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance, all generated on average over $140,000 each time a home sold. Not only that, but the income generated by the real estate industry itself amounted to $40,713, constituting 28.4% of the total impact to the state’s economy. And overall, real estate accounted for a remarkable $91.9 billion, or 20% of the gross state product, in 2022.

In our local Quad Cities area, we’ve been fortunate to experience a resilient and diverse housing market. Home sales have consistently maintained their year-over-year stability, reflecting similar steadiness in other aspects of our economy such as employment and income levels. For example, as of July, Yavapai County boasted an unemployment rate of just 4.3%.

Earlier this year, NAR unveiled additional compelling data in its “Wealth Gains by Income and Racial/Ethnic Group” report showcasing the impressive wealth accumulation of homeowners in Prescott over the past decade. Specifically, local homeowners saw their home values appreciate by more than $200,000, surpassing the national average in this category by a significant $60,000 margin. This data emphasized the invaluable role that REALTORS play in facilitating home transactions that not only fulfill housing needs, but also contribute significantly to the creation of generational wealth for their clients.

While homeownership promotes personal wealth development, a thriving real estate market also creates demand for improved infrastructure within our local municipalities. The growth in residential and commercial properties requires investments in roads, utilities and public services. In turn, this need for development creates jobs and enhances the overall quality of life, making regions more attractive for residents and businesses.

We’ve witnessed firsthand the impact of these improvements within our own community, particularly when we see such strides as the improvements to Highway 69 in Prescott and Glassford Hill in Prescott Valley. These infrastructure developments make our beautiful community even more appealing to prospective residents while ensuring the safety and improved quality of life of those currently living here. Moreover, there are ongoing projects aimed at further enhancing our infrastructure. The City of Prescott recently announced the State Route 89 (SR89) Roadway and Infrastructure Improvements Project, which encompasses the construction of sewer infrastructure improvements along SR89 spanning from the Phippen Roundabout to the Willow Lake Road Roundabout, with the potential of additional roadway improvements. Such improvements are intricately linked with the real estate market as infrastructure development and real estate are mutually beneficial to one another.

The importance of real estate in the economy cannot be emphasized enough. It offers individuals a pathway to wealth accumulation while catalyzing improvements in our communities. A consistent real estate market not only signifies a stable economy but actively fuels its long-term prosperity. As we are well aware, the Quad Cities area is an exceptional place to call home, and by engaging in the housing market, we not only secure a place to live but also contribute positively to our local economy. QCBN

By Suzanne Westrum

Suzanne Westrum is the CEO of Prescott Area Association of REALTORS.

Advancing Equity, Fostering Healthy Competition in the Real Estate Market

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This partnership also advances equity, fosters healthy competition and facilitates the homeownership process.

The housing market plays a crucial role in wealth creation and economic stability. Realtors work in conjunction with the Multiple Listing Service (MLS) to advance equity, promote fair competition and make the dream of homeownership possible.

Realtors possess the knowledge and expertise to guide buyers and sellers through a complex process, ensuring fair treatment and representation for all parties. Realtors help individuals from diverse backgrounds navigate the housing market, providing insights that promote affordable housing and equal opportunity.

One of their greatest tools in providing the best service and representation to their clients lies in broker marketplaces, more commonly known as MLSs. These are centralized hubs that keep buyers, sellers and real estate agents connected with access to every available listing currently for sale so they know their options, which is essential to fostering healthy competition. When buyers and sellers work with a realtor, they can be confident that they have access to the largest pool of properties for sale in the marketplace.

Not only do MLSs provide access to inventory, but they also deliver widespread advertising, as well as the practice of the listing broker paying the buyer broker’s compensation, which incentivizes participation in these local real estate marketplaces and creates the largest, most accessible and most accurate source of housing information available to consumers.

Having housing information concentrated and accessible in one place in local markets levels the playing field among brokerages, allowing smaller brokerages to compete with larger ones, and provides for unprecedented competition among brokers, including those with different service and pricing models.

Even the ability to find listings for homes online is made possible by virtue of local MLS broker marketplaces. Online home listing sites receive much of their inventory from these local broker marketplaces. That data exists because of real estate professionals and others’ commitment to cultivating comprehensive housing data reinforced by guidelines that ensure accuracy and transparency so consumers can confidently rely on the information.

Realtors and MLSs strive to work symbiotically to support the housing market; realtors negotiate on behalf of their clients to ensure fair prices and terms, engage in continuing education to stay abreast of important laws and regulations, and provide guidance on pricing strategies and marketing techniques to attract potential buyers. Broker marketplaces complement realtors’ expertise by providing buyers and sellers with a plethora of options. They can choose a realtor who stays up to date with market trends and aligns with their specific needs.

This partnership also advances equity, fosters healthy competition and facilitates the homeownership process. By providing guidance, expertise and a competitive environment, these elements contribute to a more equitable and transparent housing market. Whether you’re a buyer or seller, leveraging the expertise of real estate professionals and utilizing the MLS can help ensure a smooth and successful property transaction. QCBN

By M. Faye Humphrey

Faye Humphrey is the 2023 president of the Prescott Area Association of Realtors. With more than 20 years of experience, Humphrey is the broker/owner of KMF Real Estate, with offices in Prescott and Scottsdale.

The Prescott Area Association of Realtors (PAAR) is the trade association representing more than 2,000 REALTORS® serving the greater Quad Cities area. Established in 1944, PAAR’s mission is to advocate for private property rights, and provide its members with resources to foster their business success. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of Realtors.

For more information, contact:

Elissa Portela

Communications Director

Prescott Area Association of Realtors

Office: 928-445-2663 x 203

Elissa@paar.com

www.paar.com

Championing Private Property Rights

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Realtors are also advocates for their clients. A realtor’s job is to represent their clients’ best interests at every stage of the transaction.

Homeownership is part of the American Dream, and Realtors play an essential role in that dream, but their value extends much further than that. Every home sale generates $88,000 in local economic activity, accounting for 18% of the nation’s GDP, and every two home sales supports one American job.

Real estate transactions are complex and include far more than many people know; attorney reviews, filing state/federal forms, tracking mortgage rates/terms, coordinating with lenders, scheduling appraisals/inspections, researching property taxes, public records, price trends, neighborhood details, and school district ratings, handling negotiations, fielding incoming offers and showing requests, auditing your home before listing, requesting repairs or concessions, executing a multi-channel marketing strategy, and much more.

While some may be tempted to go it alone, known as “For Sale by Owner” (FSBO), research shows the wisest choice is to trust a trained professional. According to data from the National Association of Realtors (www.nar.realtor), FSBOs accounted for only about 10% of home sales in 2021. To put it in perspective, homeowners who decide to market their own property experience only an 11% success rate. That’s like a football team only making it to their own 10-yard line on every kickoff. No one is headed to the Superbowl, or even the post-season, with those stats! Additionally, homes sold by a trained Realtor typically achieve a final sale price 74% higher than that of the average FSBO.

Realtors are also advocates for their clients. A realtor’s job is to represent their clients’ best interests at every stage of the transaction. This means ensuring that they receive fair and equitable treatment under the law. Realtors, who are bound by a strict code of ethics, can guide buyers and sellers through the process, ensuring that they understand their rights and obligations.

Realtors also play a critical role in ensuring that property rights are respected and protected. Local, state, and federal regulations can have a significant impact on property rights, and realtors are often on the front lines advocating for their communities’ interests. This can include working with local zoning boards, advocating for property tax reform, and lobbying for legislation. PAAR sends a team of representatives to the Realtors Legislative Meetings in Washington, D.C., every year to stay on top of developments on a national level that may impact those they serve here at home in the Quad Cities.

Ultimately, realtors play an essential role in the United States, and even beyond into the global marketplace. From guiding buyers and sellers through complex transactions to advocating for their clients’ interests, realtors are on the front lines in the communities they live and work in every day. By fostering a culture of professionalism and ethical behavior within the industry, a realtor helps to ensure that property owners’ rights and investments are respected and protected for generations to come. As such, it is critical that we continue to support and invest in the real estate industry and the professionals who make it thrive. QCBN

By M. Faye Humphrey

Faye Humphrey is the 2023 president of the Prescott Area Association of Realtors. With more than 20 years of experience, Humphrey is the broker/owner of KMF Real Estate, with offices in Prescott and Scottsdale.

The Prescott Area Association of Realtors (PAAR) is the trade association representing more than 2,000 REALTORS® serving the greater Quad Cities area. Established in 1944, PAAR’s mission is to advocate for private property rights, and provide its members with resources to foster their business success. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of Realtors.

For more information, contact:

Elissa Portela

Communications Director

Prescott Area Association of Realtors

Office: 928-445-2663 x 203

Elissa@paar.com

www.paar.com

 

Preparing for the Quad Cities Real Estate Market

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The code of ethics all realtors abide by may make the difference between a seamless, painless experience and potential disaster.

Most business owners know that the real estate market is the backbone of every successful community; buyers move in, have families, open businesses, shop locally and so on. Property transactions have a ripple effect that is often a key predictor of economic growth.

So, how can property owners, both commercial and residential, prepare for the inevitable ups and downs of the market and ensure long-term equity growth and a solid investment? Here are some things to focus on:

History matters. The market is known for certain cycles and patterns, which can aid in making educated guesses about when to buy and when to sell. Look at the record of market data in your area. Your local realtor association tracks market data and can point you in the right direction.

Know your priorities. Do you have capital tied up in your business? Do you anticipate needing to move in the near future for a new job or an expanding family? All of these factors will affect your strategy.

Check your finances. You’re going to need cash for down payments, deposits, earnest money, repairs, the list goes on and on! Have you spoken with a lender to see what you’re qualified for? Have you crafted a budget and checked your credit score? This side of things can get complicated, so lean on your realtor to point you in the right direction for your individual needs.

Use a realtor. The code of ethics all realtors abide by may make the difference between a seamless, painless experience and potential disaster. Choose a realtor who has the education, experience and support to be exactly what you need.

Track your data. How have property values changed in your area, whether it’s your business or your personal residence? Do you have equity in your property? Are you relying on outside financing to supplement a transaction? Knowing how your money has behaved in the past will inform your timing and strategy.

Overall, preparing for the worst but hoping for the best is something we can all try to do. I’m hoping for a successful year for all of us here in the Quad Cities, but you can bet I’m also preparing for whatever comes next. QCBN

By M. Faye Humphrey

Faye Humphrey is the 2023 president of the Prescott Area Association of REALTORS.

About PAAR:
The Prescott Area Association of REALTORS (PAAR) is the trade association representing more than 2,000 REALTORS serving the greater Quad Cities area. Established in 1944, PAAR’s mission is to advocate for private property rights, and provide its members with resources to foster their business success. The term REALTOR is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS.

Were the Remodel Projects Taken on During the Pandemic Worth the Money?

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Americans spent $420 billion in 2020 on remodeling their homes.

According to a recently published report by the National Association of Realtors and the National Association of the Remodeling Industry, homeowners remodel for a variety of reasons and some projects produce a better cost recovery than others.

The report focused on the following items:

  • The typical cost of 19 remodeling and replacement projects, as estimated by members of the National Association of the Remodeling Industry (NARI).
  • How much appeal each project is likely to have for buyers, according to realtors.
  • How much realtors estimate that homeowners can recover on the cost of the projects if they sell the home.

Americans spent $420 billion in 2020 on remodeling their homes. Among NARI members, 90% found a greater demand in contracting in remodeling work during the COVID-19 pandemic. Sixty percent of NARI members cited the scale of the projects increased either in a larger project or remodeling more than one room because of the pandemic.

While most consumers (83%) cite they would have remodeled regardless of the pandemic, 86% of consumers report that remodeling one area of their home made them want to then remodel other areas of their home. When consumers remodel, it is to upgrade worn-out surfaces, finishes and materials (30 percent); to add features and improve livability (20%); and because it is time for a change (16%). Most consumers are pleased with the overall result and 57% would tackle the project the same way, while 35% would make a few different choices such as finishes or materials.

After remodeling, 84% of owners have a greater desire to be in their home. Sixty-nine percent have increased enjoyment in their home. Fifty-seven percent feel happy, and 39 percent feel satisfied when they see their completed project, with a typical Joy Score of 9.6.

Sixty-nine percent feel a major sense of accomplishment when they think of their completed project. Thirty-five percent of owners report the single-most important result from remodeling is better functionality and livability, 22% report durable and long-lasting results, materials and appliances, and 14% report beauty and aesthetics. Thirty-five percent of the owners hired a professional for the whole job, 28% hired the labor but purchased the materials, and 22% did the entire project themselves.

Thirteen percent contributed some do-it-yourself (DIY) labor. In some areas of the report, costs are not collected, as these projects are more likely to be done DIY or part of a larger project. The report covers both interior and exterior home improvement projects. This report provides a cost recovery estimate for representative remodeling projects. The actual cost of each remodeling project and cost recovery are influenced by many factors, including project design, quality of materials, location, age and condition of the home, and homeowner preferences. For the purpose of costs collected, NARI members were asked to expect the home was a 2,495-square-foot house — the average size according to U.S. Census data — and that the house is a post-1981-built home with no hidden issues. To ensure the most applicability, projects and materials represent standard or typical quality; a few projects feature “better-quality” materials. But there are no top-of-the-line projects.

There are many ways for homeowners to approach remodeling projects and even more ways to analyze the projects’ successful outcome. NAR calculated a Joy Score for each project based on the happiness homeowners reported with their renovations. There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.

In comparing that dollar value to the estimated cost of each project provided by NARI members, a Recovered Project Cost percentage was calculated. For interior and exterior projects, these graphs show the results of the major cost recovery categories.

Surprisingly, it wasn’t always the most expensive projects that produced the best cost recovery results. Remodeled kitchens and bathrooms are also popular upgrade projects but they are expensive to undertake and don’t always provide for great cost recovery at sale time.

It you are looking to make some upgrades to your own home and you are considering selling any time soon, you may want to pay close attention to the results of this study. QCBN

By Nick Malouff

Nick Malouff is the CEO and co-owner of Better Homes and Gardens Real Estate BloomTree Realty with offices in Prescott, Prescott Valley, Cottonwood and Sedona. To reach Nick or a highly qualified agent, please call 928-443-8800.

Who Pays the Real Estate Agent?

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Buyers should expect to sign an agreement with a savvy buyer’s agent.

This is a frequently asked question in any consultation between client and agent. The seller selects an agent to list their home and is often surprised to hear the estimate of fees for this process, including a commission for both the listing agent and the agent who brings the buyer.

The listing broker is paid commission from the seller proceeds at closing and out of that compensates the agent who brings the buyer, also known as the “cooperating agent.”  This is how it has worked for decades, but changes are coming as a result of a class action suit filed against many major real estate corporations, the multiple listing service providers and the National Association of Realtors. The complaint centered around transparency on who is paying the commission in a real estate transaction. The National Association of Realtors is voluntarily rolling out some changes to increase transparency in commissions paid for real estate services.

What is the Problem?

Buyers do not pay their own agent commission, so buyers often view their agent’s services of showing the property, contract negotiation and transaction consulting services as “free.” Sellers do not want to pay the buyer’s agent for essentially negotiating against them.

Who Really Pays the Commission?

All commissions and fees come out of the funds the buyer pays the seller for the home. Sellers consider this amount in the price they ask for the home so an argument can be made that the buyer pays the commission when they pay at or near the list price of the home.

What if I Skip the Agent?

Consumers have been encouraged to visit various real estate portals and search for homes. The driver for the consumer is to get real estate information without having to speak to an agent until they are ready. What happens behind the scenes is the real estate information portal sells the consumer’s information to a real estate licensee who then follows up and often becomes the agent for the client. The agent then splits up to half of the commission with the real estate portal that provided the consumer info as a sales lead. This is how portals make their income to continue developing their sites and providing information to consumers.

What’s New in 2022?

The trend is moving toward buyers paying their own agent commission at close of escrow. This could be an issue for a cash-strapped first-time homebuyer who is among those who most need the services of a real estate agent. Agents working with buyers will be asking for signed employment and compensation agreements to ensure they are fairly compensated for their time advocating on behalf of the buyer.

Starting in January 2022, commissions are now viewable by buyers and sellers on real estate portals. Buyers can see what their agent will be paid if they purchase a home that they view online. It helps to know in advance if the commission offered the buyer’s agent will cover the entire fee charged or if the buyer will have to kick in at closing to ensure their agent is paid. Sellers will know if the listing agent is offering a fair incentive to the agent who brings the buyer.

Buyers should expect to sign an agreement with a savvy buyer’s agent. A great buyer’s agent is priceless if they lead your search for the right property and advocate on your behalf while keeping you informed throughout the transaction. The first test for a consumer could be to see if the agent is savvy and negotiating on their own behalf to ensure they will be paid and can invest the time into you and your property search. QCBN

By Leslie Guiley

For more information, please visit our office or call 928-443-8800 or bloomtreerealty.com.  Leslie Guiley is chief operating officer at Better Homes and Gardens Real Estate | BloomTree Realty, which includes BHGRE Commercial and she is an area ambassador with Inman News.