The Prescott Market Surge Everyone's Been Waiting For - February 2026 Market Update

If you've been wondering whether the Greater Prescott market is finally gaining momentum, the January numbers just delivered your answer in spectacular fashion.

While others were still debating market direction, smart buyers and sellers positioned themselves to capitalize on what's becoming one of the most active January periods we've seen in years.

The Three Numbers That Prove This Market Has Shifted

276 properties went under contract in January 2026—marking a dramatic 23% increase year-over-year from January 2025 and a stunning 56% jump from December.

Your instincts about increased activity were absolutely correct. The floodgates opened the moment the calendar flipped to 2026.

The Interest Rate Reality That Changes Everything for You

Current rates are holding steady at 6.15-6.2%—representing near three-year lows and your best financing opportunity since early 2023.

Here's the truth that could save you from costly delays: despite speculation about the new Fed chair's impact, every expert forecast we're tracking projects rates to remain in the 6% range throughout 2026. You'd have to dig deep to find any credible analysis suggesting rates will drop below 6%.

Translation for your decision-making: This is your rate environment for 2026. The question isn't whether rates will improve—it's whether you'll capitalize on current conditions while inventory and opportunity still exist.

Your Strategic Advantage: Inventory vs. Demand

931 homes on the market today compared to 821 homes a year ago. You have 13% more options than you had in January 2025—the best selection availability in nearly four years.

But here's your window of opportunity: Days on market is telling the real story of this shift.

• National average: 78 days to sell

• Prescott area homes that closed: 91 days average

• Current active inventory: Been on market 127 days average

That 36-day gap between properties that sell versus properties still waiting reveals everything you need to know about this market. Three factors separate success from stagnation: location, condition, and price.

Why Prescott Just Became a National Luxury Market Destination

Breaking news that validates your Prescott investment: The Wall Street Journal and Realtor.com just ranked Prescott as a top 10 national luxury market—with luxury listings carrying a median price of $1.43 million.

This recognition explains the recent value surge we've been tracking and positions Prescott among America's most desirable markets.

Your Negotiation Advantage in the Current Environment

For rate-sensitive buyers: Closing cost concessions are becoming standard practice again. Sellers who've been on the market 60+ days are increasingly receptive to 2-3% concession requests—often more favorable long-term than price reductions for both parties.

For sellers: The luxury market validation means premium properties are attracting serious attention, but success still demands strategic pricing aligned with current buyer behavior and market absorption rates.

Current Inventory Breakdown by Market Area

• Prescott: 418 properties available

• Prescott Valley: 217 properties available

• Chino Valley: 55 properties available

• Surrounding areas: Remainder of inventory

January Price Movement Reality Check

Prescott: -5.3% (returning closer to six-month averages after luxury surge) Prescott Valley: +5% increase Chino Valley: -4.5% decline Overall MLS: -5.35% adjustment

These numbers reflect the luxury concentration effect leveling out—bringing us back to sustainable appreciation patterns rather than artificial spikes.

The Strategic Truth About Waiting vs. Acting

If you're a buyer: You have the best combination of inventory selection, financing rates, and seller flexibility we've seen in years. But increased buyer activity (276 January contracts) means your window of maximum choice may be narrowing.

If you're a seller: Buyers are actively shopping, but they're taking time to evaluate options. Success requires pricing strategy that acknowledges 127-day market averages while positioning for the 91-day success stories.

What the Next Four Months Hold for Your Decision

Increased inventory expected: Both nationally and locally, spring typically brings more listings to market.

Rising buyer demand anticipated: As inventory increases, more buyers enter the market, creating competitive dynamics for well-positioned properties.

Stable appreciation forecast: Barring macroeconomic events, gradual appreciation in a more stable environment appears likely.

Your Next Move in This Shifting Market

The Greater Prescott market has definitively shifted from speculation to activity. January's 23% increase in contracts proves buyer demand exists—now success depends on understanding current dynamics and acting strategically.

Whether you're ready to capitalize on your home's equity in this newly recognized luxury market or you've been waiting for the right combination of rates, inventory, and market momentum, this environment rewards expertise over emotion.

Don't let the complexity of competing market signals delay your real estate goals. Schedule your complimentary market analysis and let's discuss how January's surge creates opportunities specific to your situation.

Ready to make your move with confidence? Contact The HYLAND GROUP today. As the #1 team in Greater Prescott for 13 consecutive years with one sale every 23 hours, we'll help you navigate this active market with the expertise that comes from $1.5B+ in sales and serving over 4,100 families.

Schedule your complimentary consultation: 928-445-2100

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