Last month, I discussed the idea that we might be seeing the start of a leveling out of the Havasu real estate Market. This means good news for buyers. Another possible indication that the market shows signs of easing up is that we have seen home sellers lower their listing prices for the first time in months. Even so, Havasu homes still sell pretty quickly. They just might not sell as quickly as they used to. And sellers are responding by adjusting their asking price accordingly.
Home Sellers Dropping Prices: Is the Market Leveling Out?
Since March, Lake Havasu homes went under contract after an average of less than a week on the market. That is crazy fast! In turn, sellers who received no action in the first week or two, typically lowered their prices to renew interest. And many times, these were more significant drops than the $5000 to $10,000 we used to see in the past. However, a significant drop could trigger a multiple-offer situation. In turn, this sometimes pushed sale prices for those homes even higher.
As kids go back to school, real estate sales typically hit a lull. That affects prices as well. While sales may drop off a little as summer comes to a close, it doesn’t mean that they have hibernated. It just means that the frenetic pace of less than a week on market may segue into a couple of weeks or more. Could this further indicate a possible shift in the Lake Havasu real estate market? Maybe. If so, it is happening very slowly. The current Havasu market continues to heavily favor the seller right now.
Market Trends
As of July 2021 (the most current sales figures available), Lake Havasu sales actually fell by 18.7% from the previous July. (Toilet paper wasn’t the only hot commodity in the midst of the pandemic last year.) Sale prices on the other hand rose by 20.6%. In fact, the median sales price hit an all-time high of $437,500 in July 2021. Pending and active listings both fell off by more than 15%. And inventory remains extremely low.
According to the Mortgage Bankers Association, mortgage applications for the week ending on August 13th dropped off by 1% from the week before. Freddie Mac showed interest rates inching back up to close to 3% again for the first time in several weeks. While not a reason for buyers or sellers to panic, this does show that the market may be slowly correcting itself. Remember, this is not a bubble about to burst. Instead, consider this a slow course correction towards a more level market. However, it still looks like the seller’s market is here to stay…at least for a little while. So, whether you are looking to buy a home or want to sell your property, contact me at (928) 208-5154 or send me an email. I look forward to hearing from you soon.
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