Why are so many homes for sale in Prescott, AZ?

Why are so many homes for sale in Prescott, AZ? Well, isn’t this what most new homebuyers would wish for? A housing supply that meets the growing demands? Over time, there’s been an increase in the number of new people in the area – many of them planning to buy a home here and settle down with their families.

The primary reason is that this Arizona city is unique as well as appealing. With a moderate climate, beautiful pine trees, outdoorsy opportunities, great views, affordability, and convenient livability – the place is like a magnet for those who’re looking to move to a quieter part of the United States.

What is special about Prescott Arizona?

Prescott, Arizona, is a charming small town with big city amenities. Sitting at around 5,300 feet, it offers stunning views of ponderosa pine forests, lakes, streams, and meadows. It’s a paradise for outdoor enthusiasts, with plenty of hiking and biking trails, and camping spots. The town experiences all four seasons, including some winter snowfall.

Furthermore, Prescott has great schools, notable colleges like Yavapai College and Prescott College, museums, local breweries, and diverse restaurants. 

In a nutshell, Prescott blends old-west history, natural beauty, and modern-day charm. Its picturesque downtown features Victorian architecture, boutiques, galleries, and cozy cafes. With a mild climate and strong community spirit, it’s a perfect place for those seeking history, nature, and a laid-back pace of life.

What is the current real estate market like, in Prescott?

The housing market in Prescott is typically a seller’s market where the demand for homes has been more than the supply. In fact, many of the Prescott houses get multiple offers.

Prescott’s real estate market has been on fire for the past few years. People from all over are drawn to the area, especially retirees looking for a quieter lifestyle. This increased demand has led to rising home values, prompting some residents to cash in on their investments. Today, Prescott has a median selling price range of $575000 to $629,250. And, the average time homes spend on the housing market has decreased from the previous year.   

A standard home sells for about 1% more than the listing price. Hot properties can sell for 4% more than the listing price and may get lapped up in around 6 days. Keep in mind that the exact numbers may vary a little month-to-month, agent-to-agent, and area-to-area. 

Read more: How the pandemic changed home values

So, why are so many homes for sale in Prescott AZ

The housing market has been quite favorable to home sellers in Prescott and Prescott Valley. There are some good reasons behind such a strong seller’s market. 

Prescott continues to be regarded as a very desirable place to live in – owing mostly to its high livability quotient. As a result, Prescott is witnessing newer housing – most of them pandering to the monied immigrants.  

Some longtime residents are selling to downsize, and there’s also been a boom in new construction, giving buyers more options. Plus, with so many folks moving here for the small-town vibe and remote work flexibility, it’s just a busy time for real estate. 

Moreover, the mortgage rates in this city of Arizona are low. So, if you’re seeing a lot of “For Sale” signs, it’s because the market is active and everyone’s trying to find their perfect spot!

That said, there’s still a disparity in the demand and supply ratio – with more buyers than sellers. This has resulted in increasing home values. With buyers willing to pay premium prices for real estate, home sellers are not complaining.

Read more: Cost of living in Scottsdale AZ

What does this mean for buyers and sellers?

For buyers, the good news is that there are plenty of options to choose from. Whether you’re looking for a cozy downtown bungalow, a spacious home in a golf community, or a modern new build, there’s likely something that will catch your eye. And with more homes for sale now, you might even have a little room to negotiate, which wasn’t always the case in such a competitive market.

For home sellers, now might be the perfect time to list your home, especially with so many people looking to move to this beautiful town. Working with a knowledgeable real estate agent in Prescott can help you navigate the market and find the right buyer for your property.

What is the cost of living in Prescott AZ?

The cost of living in Prescott, AZ, is higher than the national average but still more affordable than larger Arizona cities like Scottsdale. Housing is the biggest expense, with median home prices of more than $500,000 and rental costs ranging from $1,200 to $2,000 per month for a two-bedroom property. Utilities and groceries are slightly above average, while transportation costs are typical for a car-dependent town.

Healthcare expenses are comparable to other small towns, and taxes are moderate, with relatively low property taxes. 

Prescott boasts an average living cost of $2190, placing it among the top 13% of the world’s priciest cities—ranking it 1146th in the United States among 2202 cities, and 16th out of 34 in Arizona. The median monthly salary (after-tax) is about $3125.

In terms of overall liveability (health expenses, food and groceries, utilities, housing prices, and transportation), Prescott is 12.7% more expensive than Prescott Valley. 

Read more: Why are houses so expensive in Arizona

Why are Californians moving to Prescott, AZ?

Today, the majority of people relocating to this central Arizona mountain town are from California. Many of the people who moved to Prescott are retirees or those with young families. 

Most of them have large sums of money, obtained through the selling of their pricey California homes. Therefore, they don’t mind paying exorbitant real estate costs to construct massive mansions on Prescott’s pine-covered hillsides. Otherwise, their proceeds from the home sales would be subject to the federal government’s capital gains tax – something they want to avoid paying.

The influx of these monied immigrants is hugely responsible for Prescott’s real estate values skyrocketing. For example, lots that sold for $20,000 a few years ago are now selling for $40,000. And, exclusive gated communities are going above $100,000. No wonder, many local Prescott residents resent the growing numbers of ‘outsiders’.

Read more: Comparable home sales  

Is it a good idea to invest in real estate in Prescott?

Yes, you can consider investing in Prescott real estate for a promising future. Here are some good reasons:

Increased demand

The city’s population has grown steadily due to its appealing climate, small-town vibe, and diverse recreational activities. Many relocating from California and New York find Prescott offers a lower tax burden and more affordable homes.

A thriving economy and job market

With a projected status as one of the fastest-growing cities, Prescott’s economy is booming, leading to increased job opportunities. 

A great real estate market

Prescott is in a strong seller’s market, with homes selling quickly and prices rising steadily (15.2% year over year). Investing in Prescott homes for sale promises a wise choice with long-term dividends.

Read more: Why is the housing market so hot right now?

Last thoughts

Why are so many homes for sale in Prescott, AZ? The strong seller’s market in Prescott is due to the low inventory of houses for sale, reasonable mortgage rates, and the charm that the place holds for people from nearby states – including California. The relocated Californians are willing to put big money into real estate and the sellers are happy as they’re getting more than expected.

Average-size homes get snapped up almost as soon as they enter the housing market. In comparison, bigger houses typically take a bit longer as the buyer pool for them is smaller.

Read more: Moving to Arizona? Explore the best neighborhoods in Tucson.

Written by Ramona Sinha. May 19, 2022

Ramona is a senior content writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.