The Prescott, Arizona, real estate market is undergoing a sharp correction, with 43% of listings requiring price reductions and median home prices falling from $699,000 to $585,000 over the past year. For Erin Carmona, a veteran agent at Realty ONE Group Mountain Desert, this shift marks a necessary return to market fundamentals after a period of rapid, unsustainable price growth fueled by the pandemic.
“We’re recovering from a false market,” Carmona says. “A 25% increase in equity over 18 months is not sustainable. During COVID, Prescott became one of the top five retirement destinations, which brought in a large influx of buyers and pushed prices up due to limited inventory.”
A Career Built on Relationships
Carmona entered real estate at age 51, moving from a healthcare and marketing consulting background into a field she saw as equally dependent on building trust and relationships. Her previous roles included director of first impressions for dental practices, brand strategist, and marketing consultant—experiences she credits with shaping her people-first philosophy.
“I transitioned into real estate at 51, which was a huge journey in itself,” Carmona recalls. “While it was different and there was a lot to learn, the business acumen I’d collected over my lifetime was basically the same. This is a people business, it’s a relationship business, it’s marketing.”
Carmona began preparing for her real estate career in 2015 but postponed her plans while raising her daughter as a single mother. When COVID ended her consulting work, she earned her real estate license in six weeks and immediately started her new career.
Differentiating Through Authenticity
In a market where agents share access to the same MLS, contracts, and marketing tools, Carmona says her approach is defined by authenticity and a willingness to offer honest counsel—even when that means advising clients not to buy.
“What makes my approach unique is me,” Carmona says. “I’m not trying to sell you. I’m looking for an opportunity to serve you. You need to choose the agent you’re comfortable having hard conversations with, because we could have hard conversations.”
She frequently counsels clients to delay buying if it’s not in their best interest. “Sometimes it doesn’t make sense to buy,” she says. “That’s where we as agents have to do the right thing. Partnering with a great lender who can look at their financial situation and help advise whether they should wait six months, pay off bills, and save money is crucial.”
Market Dynamics and Buyer Behavior
The current correction has made pricing properties more challenging. “It’s getting harder to comp a property because some are sitting on the market for a long time, some are going quickly, some at list price, some taking huge price cuts,” Carmona observes. “We’re trying to figure out what the market will bear.”
Despite overall price declines, specific Prescott neighborhoods remain resilient. Properties in the area’s pine-covered mountains continue to command premium prices and faster sales, while homes in the valley tend to linger and see more significant price reductions.
Buyers are also behaving differently from during the pandemic boom. “They’re taking a lot longer to decide, which is good—they’re able to make slower choices,” Carmona says. “However, the danger is helping them know that this house could still sell in a day, even though it’s been on the market for 120 days.”
Interest Rates and Affordability
With interest rates hovering near 7%, Carmona says many buyers are overly focused on rates rather than the broader affordability picture. “A near 7% interest rate should not be scary,” she argues. “It isn’t the interest rate that’s the problem. It’s the gap between the interest rate and what that affords you for a home.”
She points out that rates between 4% and 7% were standard before the pandemic, and that today’s affordability issues stem from prices rising much faster than wages during the period of ultra-low rates. “COVID took interest rates down dramatically while house prices went up dramatically. We’re trying to get back to center so that your house payment doesn’t leave you house poor.”
Looking Ahead to 2026
Carmona expects the market to gradually stabilize as both buyers and sellers adjust to new conditions. “I think we’re going to see inventory go up a little bit because sellers who weren’t successful this year will try again in spring,” she predicts. “Buyers are getting more comfortable with the fact that interest rates aren’t going down to 5%.”
She notes that the past 12 to 18 months have been educational for sellers who initially resisted realistic pricing. “Agents have been trying to advise sellers, and sellers have had to learn through experience,” Carmona says. “Now sellers are seeing that houses around them took significant price drops before selling, so we have enough comps to help re-educate about realistic fair market value.”
Embracing Technology While Prioritizing Human Connection
As technology and artificial intelligence become more common in real estate, Carmona sees these tools as helpful but not a replacement for skilled agents. “There’s talk about realtors being replaced, like travel agents were. I personally disagree,” she says. “Selling and buying a home is far different from taking a vacation.”
Carmona uses AI and automation for tasks like scheduling, research, and marketing, but believes the core of her business remains human. “The agents that are going to shine are those with excellent communication skills who can help clients navigate the emotional journey that real estate brings,” she explains. “I may not be the best financial advisor, but I have a passion for people, and that will differentiate any agent who wants to elevate their business.”
She adds that the industry’s future will belong to agents who combine technological efficiency with genuine personal service. “At the end of the day, people will crave people. We were built for connection,” Carmona says. “Agents need to stop acting from a place of fear and figure out how to shine and differentiate themselves.”
Prescott’s Correction: Opportunities for Informed Buyers and Sellers
For Prescott, the market correction is reshaping expectations for both buyers and sellers. The rapid price increases of the pandemic era have given way to a more cautious, data-driven approach, with realistic pricing and patience becoming the keys to successful transactions. Sellers who adapt to current market realities and price their homes appropriately are finding buyers. At the same time, those who cling to last year’s valuations face extended time on market and repeated price cuts.
Buyers, meanwhile, are taking more time to make decisions, weighing affordability and value with greater scrutiny. The most desirable properties—especially those in Prescott’s mountain neighborhoods—continue to attract interest, but even these require careful pricing and strategic marketing.
As Prescott remains a sought-after retirement destination, the market’s adjustment presents opportunities for buyers willing to be patient and for sellers who work with experienced agents to set realistic expectations. Carmona believes that focusing on long-term relationships and honest guidance, rather than chasing quick sales, will be essential as the community navigates this period of change.
The combination of technological tools and human expertise may prove critical for agents and clients alike. In a market where fundamentals are reasserting themselves, Carmona’s relationship-driven approach offers a model for sustaining business and building trust, even as the market recalibrates. For now, patience, realism, and a people-first focus are shaping the path forward for Prescott’s real estate community.
