So far, 2020 has proven a bit difficult for most Americans. Even though home sales started off really well in January, COVID-19 concerns shuttered several businesses. This left many local residents jobless. Buying a Havasu home amid a nationwide shutdown wasn’t necessarily at the top of many people’s lists. Lake Havasu Market Report for May 2020 showed a drastic decrease in sales. Even so, buyers still paid more on average for the properties that did sell.
Lake Havasu Market Report for May 2020
May 2020 Home Sales
Flex MLS reported a total of 151 Lake Havasu properties were sold last month. Unfortunately, that’s a 42.4% drop from the 262 sold during the same time last year. It’s also 10.1% less than the total sold in April of this year and the lowest monthly total so far this year. As of mid-May, Governor Ducey allowed Arizona businesses to reopen to the public. We have already seen more tourists come to our lake. Perhaps June home sales might reflect a positive change.
May 2020 Sale Prices
Sales may have declined, but prices did not. Last May, buyers paid a median sale price of $270,000. In May 2020, buyers paid $305,000. That’s a 12.96% increase and the highest median sale price reported for this year. As everything begins to open back up, we might see prices rise even higher in the next few months.
May 2020 Inventory
One of the reasons our prices continue to rise even when sales flounder a bit could be due to our low inventory. They dropped again last month, from 4.39 months available in May 2019 to just 3.16 months in May 2020. That’s even lower than the 3.37 months reported in April and the lowest levels of the year. The median days on market decreased 17.65% from last May to just 28 days.
What Buyers Need to Know
Buyers might not be happy about paying more for a Lake Havasu home. But they should be excited about the interest rates. They continue to go lower and lower. According to Wells Fargo, borrowers with good credit may qualify for an interest rate as low as 3.125% for a 30-year fixed-rate loan. That means it costs even less to borrow money to purchase a new Havasu property than it has been in a while. If you’re ready to buy your next home, please contact me at (928) 208-5184 or via email. I’d be happy to show you what’s out there right now.
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