Reality Check - January 2026 Prescott Market

Happy New Year from The HYLAND GROUP! As you plan your next move, here's what you need to know about the current Greater Prescott market.

You might be hearing that real estate is crashing everywhere and expecting dramatic price drops in Prescott. But before you make any moves based on national headlines and market predictions, you deserve to know what's actually happening in your backyard.

The Numbers That Matter for Your Next Move

January delivered exactly what we predicted—and why your real estate decisions require local expertise to navigate successfully:

Current Inventory Reality:

  • 931 total single-family homes for sale (January 1st)

  • Up 13.5% from January 1st, 2025

  • This represents our typical winter low point

Demand is Actually Increasing:

  • 177 homes went under contract in December

  • Up 15.7% from December 2024 (153 properties)

  • Buyer demand is not only present—it's growing

But here's what the numbers don't immediately reveal—and why your next move requires strategic guidance to succeed in this environment.

Why the "Crashing Market" Headlines Don't Apply Here

You're not wrong if you're confused by national doom-and-gloom predictions versus what you're seeing locally. Here's the reality behind what's actually happening in Greater Prescott:

Price Reality Check: MLS-wide values ended 2025 up 3.5% year-over-year. While everyone wants you to believe the sky is falling, buyers need to understand that year-over-year values in the Greater Prescott area actually increased by a significant margin.

The Overpriced Property Problem: Active inventory is sitting at 129 days on market and priced about 9-12% over MLS average price per square foot. The good news? Earlier in 2025, we saw properties priced 16-17% over market value—sellers are adjusting, but patience is still required.

Market Performance: Properties that sold successfully averaged 76 days on market before attracting offers. The key differentiator? Correct pricing and good condition.

The Interest Rate Truth You Need to Understand

You might be waiting for dramatic rate drops that may never come. Here's what the experts are actually predicting:

Current Reality: Starting the year at 6.19% for 30-year fixed mortgages, with most predictions showing rates reaching about 6% by year-end—less than a 0.2% decline.

Historical Perspective: A 6% interest rate isn't bad. In fact, an article we found revealed that more homeowners in the US now have interest rates of 6% or higher than those holding 3% or lower mortgages.

Why This Matters: The "seller strike" that created supply shortages is ending. People who had 2.5-3% mortgages were unwilling to trade them for 7.5-8% rates. Now that most mortgage holders have 4-6% rates, and many who wanted to move have already done so, we're seeing predictions of increased inventory as more sellers come off the sidelines.

Your Strategic Advantage in This Market

While others are paralyzed by conflicting national headlines, you have access to insight from our team's track record—one transaction every 23 hours in 2024.

For Sellers: The market rewards correct pricing and good condition. Properties priced over market value with deferred maintenance are not attracting showings or offers. Your home deserves expert pricing strategy based on local conditions, not national headlines.

For Buyers: Mortgage originations are increasing nationwide, signaling more buyers are entering the market. The National Association of Realtors predicts increased transaction volume for 2026. Your window for choice may be narrowing as more buyers recognize this as the "new normal" for interest rates.

What This Means for Your Next Chapter

The Greater Prescott market is stabilizing around sustainable fundamentals, not experiencing the dramatic crash national media suggests. You're navigating a market where over 20% of December closings were still over the million-dollar mark, demonstrating continued strength in our luxury segment.

Whether you're ready to move to your next chapter or you've been waiting for the right moment to find your Prescott home, this market rewards those who understand local conditions over national noise.

Your Next Step Forward

Don't let misleading national headlines derail your local real estate goals. Schedule your complimentary market analysis and let's discuss how current Greater Prescott conditions create opportunities for your specific situation.

The data shows what happened—but you need a strategy for what happens next in your market.

Ready to make your move with confidence? Contact The HYLAND GROUP today. As the #1 team in Greater Prescott for 13+ consecutive years, we'll help you navigate this 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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