The 2022 real estate industry started off a bit lower than 2021. February continues this downward trend in sales and inventory. However, the Lake Havasu Market Report for February 2022 tells a different tale with home prices. They hit another record high again. Interest rates also continue to rise. And they do not appear to be slowing down anytime soon.
Lake Havasu Market Report for February 2022
February 2022 Home Sales
Flex MLS reported a total of 198 Havasu properties were sold in February 2022. That marked a 7.9% dip from the previous February. However, it was also 12% higher than January’s total of 174. Active listings and pending listings also fell from February 2021’s numbers (by 14.7% and 4.4% respectively). New listings also fell from 279 in February 2021 to 236 last month.
February 2022 Sale Prices
The slower start to the year, however, did nothing to dull the rise in sale prices. The median sale prices hit another all-time high again. They rose by 26.47% (from a median of $358,000 in February 2021 to $452,750 in February 2022). In fact, they have steadily been on the rise since November 2021.
February 2022 Inventory
Inventory levels fell again last month. In February of last year, we saw levels at 1.49 months of inventory available. We fell even lower last month to just 1.24 months. That means that, if no more homes hit the Havasu real estate market and we sold houses at the exact same rate as we sold them in February, we would run out of properties in about five weeks. That keeps us in a strong seller’s market. The median days a property stayed on the Lake Havasu market before going under contract stayed roughly the same as the previous February (10 in 2021, 11 in 2022).
What Buyers Need to Know
As home prices and inflation rise, so do mortgage interest rates. According to Wells Fargo, 30-year fixed-rate mortgages rose to 3.875% this week. With the Russian invasion of Ukraine, John Powell, the Chairman of the Federal Reserve, said that they expect to raise their prime interest rate by 1/4% at this month’s meeting instead of the 1/2% previously predicted. That could mean that we see mortgage interest rates go up as well. While you might need to adjust your budget to accommodate the slight rise in rates, it should not deter you from seeking out a new Havasu home. Just make sure you talk to your lender before you start your search. Getting pre-approved for a mortgage before you start looking at homes helps you stay focused and allows you to confidently submit an offer on a property as soon as you find one you want. Contact me when you are ready to start your home search.
Visit any of my Lake Havasu real estate sites below for more information on the Havasu market:
Homes for Sale in Havasu
Havasu Area Homes
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