Summer has ended and the third quarter results for our local real estate market are in. Here is a brief summary for each segment of the market:
Housing Segment. It appears Heber-Overgaard, Pinedale and Show Low are the communities where the median price of housing is lagging this year, while Linden and Pinetop/Lakeside are all experiencing increases in their median prices. Looking at the five year history (2010-2015) in the Community Comparison table, we find that it’s only Heber-Overgaard and Show Low whose values are lagging over the past five years, while the other three communities’ median prices are up. (Note: I quote the median prices, as this is what we hear in the news when they’re reporting on a housing market; so I want to keep the comparison equated with other market reports). As for market inventory, it ranges from about 9 to 13 months (the time it will take to clear out the current number of units on the market based on current sales) depending on the community (for Heber-Overgaard, that number stood at 12 ½ months at the end of the third quarter). That’s still a hefty inventory, but not uncommon for up here, with most areas drawing on second home buyers (second home markets tend to not perform as well as primary markets – not as much demand).
Land Segment. It appears that all area median prices are down this year, with the exception of Pinedale and Show Low; however, there’s been so few sales in Pinedale that the data isn’t really conclusive. The only community where the price per acre is up this year is Show Low, while the rest of the communities have seen declines in the price per acre of their properties from about 5% to over 33%. Fluctuations in price per acre within communities can have to do with location more so than actual overall market conditions, which is why the median price may be a better indicator of how a market is doing. The inventory of land on the market ranges from about 38 – 59 months (the Heber-Overgaard inventory stands at a whopping 54+ months!), a strong sign that there is WAY MORE land on the market than buyer demand. Unfortunately, with housing values remaining flat in most communities, it may still be more expensive to build than to purchase existing construction, which can have an effect on land sales. And, with most of our buyers being secondary buyers, building typically isn’t of the highest priority when looking to acquire a second home, especially with almost 74% of our housing sales in Heber-Overgaard occurring at or under the $200,000 price point. That doesn’t mean there isn’t some new construction going on out there, but it’s not yet a strong segment of the market.
Overall, the housing market up here on The Rim is still chugging along, with some areas doing better than others. The good news for buyers is it’s still a great time to get into the market, with mortgage rates still hovering around (or below) 4%. Wow! In our market of mainly second home buyers, a buyer can purchase a second home with as little as 10% down. Primary market down payments can be as little as 0% down for VA and USDA purchases and 3.5% for FHA purchases. Hopefully, the low mortgage rates and down payments will draw additional attention to our local market!
If you’ve been thinking of purchasing a home on the Mogollon Rim, we have the experienced agents at Dominion Group Properties to assist you! And Sellers, don’t miss out on this perfect time to capture a buyer while rates remain low. Let us show you how we use top notch marketing to promote our listings, to help you get your property SOLD!
For home buyer or home seller assistance, please contact one of our Dominion Group Properties’ Real Estate Professionals at 928.468.3232 or visit us at our Bison Ranch office in Overgaard. Learn more about us at Dominion Group Properties. We at Dominion Group Properties are your Rim Country Real Estate Professionals!
Source: WMAR MLS, October 5, 2015