We have just over a week before we celebrate Christmas. Then, we finally say goodbye to this year and welcome in 2021. With just over two weeks to go, let’s take a moment to reflect on what happened in Lake Havasu real estate in 2020.
Lake Havasu Real Estate 2020 Year in Review
Lake Havasu Real Estate Market
It looked like 2020 was off to a great start for Havasu sales. The January housing market in Havasu started off with a third more sales than at the same time in 2019. When COVID-19 became a concern, sales started to dip. The governor declared a statewide shutdown of non-essential businesses. But buyers still needed homes. Unfortunately, open houses were out of the question. Virtual househunting became the new norm. By May, in the midst of the global pandemic, home sales hit their lowest point of the year here in the Havasu marketplace. Then, once Governor Ducey began opening things back up, buyers were allowed to visit homes in person again. Sales shot up by over 75% between May and June alone. July hit the year’s high point of 284 total sales, a 26% increase from July 2019. By the end of November, sales still outpaced the prior year’s totals by 16.5%.
Even with a global pandemic and a presidential election unlike anything we have ever seen before, sale prices hit their highest point in the history of Lake Havasu real estate. The peak median sale price came in October at $365,000. Even after dropping down to $350,000 in November, that still marked the third highest median of the year.
Unfortunately, inventory levels remain extremely low. They started off at just over three and a half months in January. But they ended November at slightly above two months available. A high buyer demand coupled with a low inventory keeps prices high. Until we see more homes for sale on the Lake Havasu real estate market, prices will most likely continue rising for the foreseeable future.
Home Buying Tips
In a seller’s market like ours, buyers need to be ready to put in an offer on a property as soon as they decide they want it. To do so, you need to make sure you get your financing in order. We continue to see extremely low interest rates from lenders. That is always a plus for home buyers. But to get the best interest rates, you need to whip your credit into shape. While you do not need perfect credit to buy a Lake Havasu home, the higher your score, the better your interest rate. If you come up with 20% or more for the downpayment on your home, you avoid PMI. That helps lower your monthly payment. But if 20% feels out of reach right now, never fear. There are plenty of other programs out there that require a much smaller downpayment. Talk to your lender before deciding which program to utilize. When you are ready to purchase your next Lake Havasu home, contact me at (928) 208-5154 or via email.
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