Usually, our Lake Havasu real estate market starts the year off mild and begins to pick up around spring (April/May). This year, thanks to COVID, we experienced a very tepid spring. But summer heated up in more ways than one. As Arizona began to open back up, people came out of hibernation. And they were on the lookout for a new home. According to the Lake Havasu Market Report for August 2020, we saw our third highest monthly sales for the year, inventory dipped down to its lowest point, and prices hit a record high.
Lake Havasu Market Report – August 2020
August 2020 Home Sales
After a rough beginning to the year, it looks like sales have really picked up. According to Flex MLS, a total of 245 properties were sold in Lake Havasu in August 2020. That marks a 25.6% increase over the 195 sold in August 2019. It also comes in at the third highest monthly sales total for this year, just behind July (284 total sales) and June (266 total sales). Pending listings exploded from 184 at the same time last year to 333 last month, an 81% increase. Active listings fell off 36.6% with 691 shown in August 2019 and 438 reported in August 2020.
August 2020 Home Prices
Buyer demand and low inventory continue to drive prices up. July’s record median sale price of $347,500 was shattered by August’s $360,000 median. That’s 20.45% higher than the $298,888 median sale price just 12 months before. Since January 1st of this year, the median sale price has risen by 20%. Right now, this upward trajectory shows no sign of stopping anytime soon.
August 2020 Inventory
Lower active listings continue to pummel our inventory levels. Flex MLS reported that our inventory fell from 3.54 months available in August 2019 to just 2.16 months available in August 2020. That’s our lowest available inventory so far this year. Available inventory means that if no new listings came on the market and sales figures stayed the same, we would run out of homes for sale in just over two months. The median days a Havasu property stayed on the market before going to market fell from 35 last August to just nine days last month. That’s the lowest median days on market we have experienced this year.
What Buyers Need to Know
Right now, the Lake Havasu real estate market sits squarely in the seller’s favor. Prices continue to rise due to low interest rates, high buyer demand, and low inventory levels. With a median of just nine days on market, buyers need to be ready to put in an offer as soon as they find a property they like. Otherwise, they run the risk of losing out or finding themselves in a bidding war. As of the writing of this post, Wells Fargo shows interest rates for a 30-year fixed-rate mortgage at 2.75% for homebuyers with good credit. You need to contact your lender today to get the ball rolling on loan approval. Strong financials help buyers shine when submitting an offer. Then, when you’re ready to start your search for your next Havasu home, contact me at (928) 208-5184 or via email. I look forward to working with you soon.
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