Prescott, AZ home prices decline as inventory and days on market rise

Median list prices in the Prescott metro dropped from $699,250 to $584,900 year-over-year while active listings surged 30.5% to 1,663 homes, marking a sharp reversal in this Arizona mountain market. The price correction represents a significant decline as sellers race to adjust expectations in a shifting landscape.

Properties now sit on the market for a median of 91 days, up from 77 days a year ago and above both Arizona’s 77-day median and the national 84-day benchmark. The extended selling timeline coincides with 42.6% of active listings taking price cuts during the week ending Dec. 5, 2024.

Inventory surge meets slower absorption

Active single-family listings climbed to 1,663 homes from 1,274 a year earlier, pushing months of supply to 3.7. Despite the inventory buildup, weekly absorption actually decreased to 121 homes from 139 in the same period last year.

New listings entering the market totaled 58 for the week, while 13.5% of current inventory consists of relisted properties. The combination of rising inventory and falling absorption signals continued pressure on sellers to attract buyers.

Price metrics reveal depth of correction

At $306 per square foot, Prescott’s pricing now exceeds Arizona’s $259 state median on a per-square-foot basis, even as the metro’s $584,900 median list price sits above the state’s $493,835 figure. Only 1% of sellers raised prices during the tracked week, contrasting sharply with the 43% implementing reductions.

The market has shifted to neutral conditions from its previous seller-favorable status, reflecting the balance between supply and demand metrics in the current environment.

Regional comparisons highlight Prescott’s challenges

Prescott’s 3.7 months of supply exceeds both Arizona’s 3.2 months and the national 3.0-month average. The metro’s median days on market of 91 surpasses state and national benchmarks by 14 and 7 days respectively.

While the national median list price stands at $425,000 with $210 per square foot, Prescott maintains a premium position despite its recent corrections.

Track the 43% price-cut rate as a leading indicator of seller urgency. Monitor whether weekly absorption can recover from its current 121-home pace to match or exceed last year’s 139-home level. Watch months of supply for movement beyond the current 3.7 months available.

Use these Prescott market metrics to advise sellers on realistic pricing strategies in a market where nearly half of listings require price adjustments. Leverage the 91-day median selling timeline to set proper expectations for listing agreements. Share the 31% inventory increase data to help buyers understand their improved negotiating position compared to a year ago.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate housing market reports. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.