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Development continues in PV, but slowdown ahead?

Residential construction continues along Glassford Hill Road as part of Prescott Valley’s development growth. (George Johnston/Courtesy)

Residential construction continues along Glassford Hill Road as part of Prescott Valley’s development growth. (George Johnston/Courtesy)

Development in Prescott Valley has grown steadily over the past decade, and some experts are predicting a slowdown may be around the corner.

The engine for this growth, besides a healthy economy, is the accommodation of residential development in downtown Prescott Valley, said Richard Parker, Prescott Valley Community Development director. When Parker began his career in 1996, Prescott Valley did not have the commercial development it has now.

When residential development began growing so too did the commercial aspect, creating a symbiosis between the two. As residential grows so does commercial, Parker said.

Each month, the Prescott Valley Community Development Department releases its monthly staff report. This report details and evaluates the commercial and residential development in Prescott Valley.

In December, Prescott Valley had; two demolitions, zero garages or carports additions, 11 commercial improvements, three miscellaneous developments, three new developments and zero zoning changes, according to the report. The Community Development Department valued commercial development at $11,824,054 while residential development is at $8,840,668. Permit amounts added up to $33,406 for commercial development and $50,613 for residential. This totals to $20,664,742 in valuations and $84,019 in permit amounts for both commercial and residential developments in December, according to the report.

The Community Development Department is happy with the December report and the robust year Prescott Valley had in 2018, Parker said. “2018 has been a busy year,” he said. “We have issued a number of commercial projects in excesses of project we have issued previously.”

If the economy continues its healthy streak, avoiding anything like a bear market or recession, Parker said, then the Community Development Department expects the monthly report numbers to stay at relatively the same levels.

SLOWDOWN?

Julianne Malouff-McCroskey, a representative for the Prescott Area Association of Realtors, has a slightly different view of the December report. Malouff-McCroskey said she interprets the numbers as following the national trend of development. The numbers are fairly good, she said; however, the reports shows new construction permits and pending sales are trending downward, which is typical for this time of year — which is happening nationally as well.

Malouff-McCroskey said she has been tracking the national decline of development since the end of July.

“I would say these stats are actually proving out we are starting to head down just a little bit,” she said. “It’s not going to be anything like we experienced in ’08, ’09, and 2010, but I believe we are having an adjustment right now.”

Rapid growth followed by entropy is typical in real estate, Malouff-McCroskey said. Before the Great Recession, according to Malouff-McCroskey, it was typical in real estate for the market to peak with growth and then adjust with decline then pickup up again.

“Real estate is cyclical,” she said. “It is very cyclical.”

George Johnston is a reporter for The Daily Courier. Follow him on Twitter at @Georges Johnston. Reach him by email at gjohnston@prescottaz.com, or call 928-445-3333, ext. 2038.

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