Even with interest rates on the upswing, buyer demand continues to soar in the Havasu real estate market. According to the February 2021 Lake Havasu Market Report, inventory levels dropped off to their lowest point in the last 12 months. Active listings fell by more than half. Sales, on the other hand, rose. This all pushed sale prices up. If you are in the market for a new home, your first step needs to be to talk to your lender about securing a mortgage loan. That way, you are ready to act when you find a Havasu home you love.
Lake Havasu Market Report for February 2021
February 2021 Home Sales
Our local MLS reported a total of 202 properties sold in Lake Havasu City last month. That was 11% higher than the 182 sold in February 2020. Pending listings rose 41.5% from the same time last year (224 in 2020 vs. 317 in 2021). Unfortunately, active listings dropped off by more than 50%, with just 329 reported last month. With a strong buyer demand, this helps push prices up even higher.
February 2021 Home Prices
Speaking of prices, buyers paid a median sale price of $359,000 for a Havasu property in February 2021. That marked a 28.49% increase from February 2020's $279,400 median. It also came in at 3.9% higher than the $345,000 median in January of this year. Most likely, we should see prices continue to rise over the next few months.
February 2021 Inventory
Low inventory continues to plague buyers. In February 2020, the MLS reported 3.44 months of inventory available. That means that if all factors remained exactly the same, this is how long it would take to completely sell out the current inventory levels. A balanced inventory (one that "levels" the playing field between buyers and sellers) is somewhere between five and eight months. So, last February's inventory swung in the seller's favor. However, that feels bloated compared to the meager 1.42 months available in February 2021.
Inventory is not the only thing that is extremely low in the Havasu real estate market. The time a property spends on the market before going under contract dropped off dramatically, too. Last year, properties spent a median of 39 days on the market. Last month, that decreased to just 12 days. This is why you must be ready to present an offer when you find a Havasu home you like. It may not be there later if you hesitate.
What Buyers Need to Know
Right now, the Lake Havasu real estate market is booming! Inventory cannot keep up with demand. It may take some time for things to balance out. Many buyers find themselves bidding against other buyers for properties. I cannot stress this enough. It is absolutely necessary for buyers to receive approval for a mortgage loan before they even start looking. You need to be ready to place your best offer as soon as you find the home you love. Submitting an offer with the financial proof to back it up makes your offer look even better to sellers. Interest rates rose from 2.65% last month to 3% this month, according to Wells Fargo. Even so, that is still an extremely low interest rate for mortgage loans. First, make an appointment with your lender. Then, contact me at (928) 208-5154 or email me so we can get started on your search for your next Lake Havasu home.
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Originally posted on my Lake Havasu real estate blog here: https://havasuareahomes.com/lake-havasu-market-report-for-february-2021/.
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