For other parts of the US, October means a changing of the leaves and chillier weather. In Lake Havasu City, it means temperatures in the 90s for the most, with the last of the triple-digits beginning to fade away. Even our local real estate market remains hot, hot, HOT! According to the September 2020 Lake Havasu Market Report, both home sales and prices went up while inventory stayed extremely low. Yes, our seller’s market continues.
Lake Havasu Market Report – September 2020
September 2020 Home Sales
According to our local Multiple Listing Service (MLS), a total of 262 Lake Havasu properties were sold in September 2020. That marks an almost 50% increase from the 175 sold in September of last year. It’s also the third-highest monthly sales total for 2020 behind July (with 284) and June (with 266). Even with a slow start to the year due to the global pandemic, our year-to-date sales outpace last year’s numbers by 10%. And we still have a whole quarter left to add to it. Pending listings rose an astonishing 61.7% in the last month (from 175 in September 2019 to 283 in September 2020). That shows a strong buyer demand. Active listings dropped from 720 in September 2019 to 440 last month (a 38.9% decrease). This indicates fewer properties on the Lake Havasu market for buyers to choose from.
September 2020 Home Prices
The median sale price for a Lake Havasu property rose from $292,000 in September of last year to $348,900 last month, according to the Lake Havasu Market Report for September 2020. That’s a 19.49% increase and the second-highest median sale price for 2020 behind August’s $360,000 median. It also marks the first time since April 2020 that month-to-month prices decreased.
September 2020 Inventory
When they say “absorption rate” in real estate, they mean how long it takes for the current inventory of properties on the market to be completely sold no new inventory hit the market and the number of buyers stayed the same. In September 2020, the MLS reported an absorption rate of 3.73 months. Last month, that fell 43.16% to 2.12 months. That is the lowest inventory level reported so far this year. That spurs on the higher sale prices as well as keeps us in a seller’s market. The median days a property spent on the market dropped off 60% in the last 12 months as well, from 15 days in September 2019 to just six days in September 2020. So, if you find a property you like, you need to be ready to submit your offer right away.
What Buyers Need to Know
Usually, a rise in prices makes buyers less likely to search out properties. However, extremely low interest rates encourage buyers to still hit the market. As of the writing of this post, Wells Fargo reports that buyers with great credit pay as little as 2.625% for a 30-year, fixed-rate mortgage. In September 2019, the same mortgage would have cost 3.83%. That’s a difference of about $200 per month on a $300,000 mortgage. That’s amazing! If you plan on purchasing a Lake Havasu property soon, you must contact your lender as soon as possible. It is absolutely imperative that you obtain a pre-approval from a lender before you submit your offer. I’ve seen many properties receive multiple offers. (“Bidding war” anyone?) The strongest buyer with the best price and terms wins out every time. So, including a pre-approval letter from your lender with your offer makes you a strong contender in this type of situation. When you’re ready to start looking for your next home, call me at (928) 208-5154 or via email. I’d love to show you around.
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