Prescott Arizona Real Estate Market Update 2025

Home Prices:

•The average sale price in Prescott hit $736,152 in December, up 8.24% compared to December 2023.

•The median sale price came in at $639,500, down just 0.47% from last year.

•What this means: Higher-priced homes are driving the growth in average prices, while mid-range homes are holding steady.

Homes Are Taking Longer to Sell:

•Average Days on Market (DOM): 96 days (+14.29% from last year).

•Median Days on Market: 66 days (+40.43%).

Buyers now have more time to weigh their options, while sellers might need to adjust expectations and stay patient.

Inventory is Growing:

•Active Listings: 566 homes (+22.2% compared to last December).

•New Listings: 104 homes added in December (+35.1%).

This increase in inventory means more choices for buyers but added competition for sellers. It’s a more balanced market where neither side holds a strong advantage.

Luxury Market is Thriving:

•Sales of homes priced $1 million+ skyrocketed by 73.3% year-over-year.

•Homes in the $500,000 to $699,999 range also saw strong activity.

Luxury buyers are driving much of the market’s momentum, making now a great time to buy or sell in these higher price brackets.

Balanced Market Indicators:

•Absorption Rate: 4.88 months of inventory (+24.81% compared to last year).

With 4 to 6 months of inventory, Prescott’s market is considered balanced, meaning supply and demand are fairly even. This is great news for both buyers and sellers.

Key Takeaways:

•For Buyers: You’ve got more options with increased inventory, but act quickly in popular price ranges like $500,000 to $700,000 where competition is still strong.

•For Sellers: Pricing your home competitively is essential with more homes on the market. Highlighting your home’s unique features can help it stand out.

Prescott’s real estate market remains healthy and full of opportunities. Whether you’re looking to buy your dream home, sell your property, or simply keep up with the market, staying informed is key.