Real Estate Market Update
For Wickenburg Arizona
IT'S A BUYERS MARKET
SALES:
The multiple listing service reports 10 homes going under
contract over the last 30 days in Wickenburg. 4 homes closed
escrow over the last 30 days, the average sales price was $110,250 with a high
of $158,500 and low of $70,000. The average time those homes spent on
the market was 265 days. the final sales price was on average
$5,450 less than the asking price.
inventory/
time on the market:
Currently we have 199 single family homes on the market which is 5
less than last month. Time on the market is averaging 10.5 months.
The time on the market figure includes all those homes that are
being taken off the market without selling, it does not reflect the
expected time on the market to sell a home.
PRICES:
More about calculating
values
Prices in Wickenburg are clearly in the process of falling to levels few
expected. The few sales we have had, have been almost exclusively
bank owned and highly motivated sellers. On top of that there are
some listings on the market being reduced to well below market value.
There are just enough of these sales that we are in the process of
establishing new market values. It appears that we are in the
midst of the same type of trend we saw in most areas at the end of last
year. Those areas saw sales slow to a standstill and then saw
eventually saw Bank foreclosures force values to new low's at which
point sales picked up considerably.
Expectations:
The trend in the market is finally becoming recognizable and
so I feel much more confident in predicting what is going to happen.
I am quite confident that these new low values being established will
eventually stir up a buying spree. The great deals won't last for
long however, because there will never be very many of them. Most
sellers in Wickenburg just won't sell when the prices are too low.
I predict that prices will Bottom out around the 1st of the year, and
that homes priced at the going rate will sell very quickly and probably
have multiple offers. This process will work to drive prices up,
but the appraisals will work against this and so I expect slow steady
price increases.
Land:
Sellers of land are still well ahead of the curve that houses have
gone through. We have
had some considerable price reductions, and there are now some fantastic
buys out there, but that has not resulted in any sales activity. I
am sure will will see a few incredibly cheap land sales over the next
year, but I am also confident that most land owners will just hold their
properties until demand for land begins to pick up. I expect
demand for land will start to pick up as home prices climb and the cost
to build comes more inline with the cost of a resale home.
Summary of data from past market updates
* When I mention an average I will exclude 2005 which was a most unusual year in Real Estate.
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