Real estate markets all across the country show a huge spike in buyer demand. That includes right here in Lake Havasu City. This is great news for sellers but not so much for buyers. Why? High buyer demand partnered with low inventory means higher sale prices. According to the Lake Havasu Market Report for March 2021, that is the exact scenario Havasu home buyers face right now. If you want to purchase a Havasu home in the near future, talk to your lender right away to start the pre-approval process on a home loan. You run a high risk of falling into a bidding war with other buyers on a home. So, you must have your financial situation in order before you even start looking at homes.
Lake Havasu Market Report for March 2021
March 2021 Home Sales
Flex MLS reported a total of 314 properties sold in Lake Havasu City in March 2021. That was 37.7% higher than the total sold back in March 2020. It also marks the highest total monthly sales in well over a year. Pending listings rose by 40.1% in the last 12 months (192 in March 2020 vs 269 in March 2021). Active listings dropped a whopping 59.8% from this time last year to just 282. That was even lower than February 2021’s 329 active listings. These low active listings contribute to higher sale prices in the Lake Havasu real estate market.
March 2021 Sale Prices
Speaking of sale prices, they surged upward yet again in March 2021. Reports showed a 28.02% increase in the median sale price from last year to $371,250. That marks the highest median sale price so far this year. In fact, the median sale price consistently rose each of the past three months. Unfortunately for Havasu home buyers, this trend seems most likely to continue for the foreseeable future.
March 2021 Inventory
Unlike prices, inventory levels continue their downward trajectory. In March 2020, Flex MLS showed inventory levels at 3.44 months. Last month, that fell even lower to just 1.21 months. Year-over-year inventory has fallen every single month since November 2020. This also contributes to the rise in sale prices as well as the increase in the possibility of a bidding war among buyers. The median days a Lake Havasu home spent on the market before going under contract also dropped off dramatically from last year. In March 2020, properties spent a median of 26 days on the market. Last month, that fell by almost 77% to just six days on the market. Yes! Buyers had less than a week to see a property and submit a bid once it hit the market before it was snatched up by someone else. That is why it is so important to be ready to submit your bid when you find a Lake Havasu home you want.
What Buyers Need to Know
I cannot stress this enough. Buyers absolutely must have a pre-approved loan in place before they submit an offer or they run the risk of losing out on the Havasu home of their dreams. In fact, I highly advise talking to a lender before you start looking at homes. We are seeing more and more buyers in a bidding war for properties because inventory is so low. That is why pre-approval should be the first step in a buyer’s home search process. According to Wells Fargo, interest rates are beginning to slowly rise. They show a 3.125% interest rate for 30-year fixed-rate loans as of the writing of this post. That’s a 0.125% increase from last month’s reported rate. Experts predict that we should continue to see this slow ascent in the near future. Even so, that rate still makes it a little easier for buyers to afford to purchase properties. When you are ready to start looking for your next Havasu home, contact me at (928) 208-5154 or via email. I am more than happy to show you what the Havasu market has to offer.
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