Last year, we saw the median sale price of a Havasu home hit its peak. While prices began to decrease after that, we ended the year strong with its third highest median sale price of the entire year. The December 2018 Lake Havasu Market Report also showed that total sales and inventory dropped off from last year.
December 2018 Lake Havasu Market Report
Lake Havasu Market Report - December 2018 Sales
Lake Havasu's Multiple Listing Service (Flex MLS) reported a total of 166 Lake Havasu homes were sold in December 2018. This showed a 9.3% drop from December 2017's 183. The final tally of sold Lake Havasu homes for 2018 came in at 2426, a 2% decline from 2017. Pending sales fell by more than 20%, with just 134 shown in December 2018.
Lake Havasu Market Report - December 2018 Prices
Unlike our sales figures, the median sale price went up again. Back in December 2017, the median sale price for a Lake Havasu home was $245,000. Last month, that increased to $274,950, a 12.2% hike. While not quite as high as the peak of 2018's Lake Havasu real estate market ($280,000 in August), it's a slight bump from November 2018's $272,500. On average, buyers paid 92.3% of the median list price.
Lake Havasu Market Report - December 2018 Inventory
Low inventory proceeds to be an issue in the Lake Havasu real estate market. After briefly topping four months in November, it fell to 3.6 in December. That's a 33.09% downturn from the 5.38 months available in December 2017. New listings dropped off by 17.3% in the last 12 months, with a reported 163 reported in December 2018. While the median 21 days a Lake Havasu home stayed on the market before going to contract was exactly half that of December 2017's median days on market, it was slightly higher than the 18 shown in November 2018.
What Does This All Mean for Buyers?
Last year, the Federal Reserve increased rates four times, ending the year at 2.25-2.5%. That's the ninth time they've raised rates since 2015. While some financial experts believe it might be a little while before we see another increase, they think we'll probably see another one later this year. After hitting the 5% mark and above in the final quarter of 2018, the current rate for a 30-year fixed-rate mortgage loan is 4.62%, according to Bankrate.com.
With a decrease in inventory and decline in new listings, Lake Havasu prices may continue to rise for a little while. If you're interested in purchasing a new home, you might want to start looking now...before the busy spring season kicks in. Get your financing together as soon as possible. That takes a little time. Then, contact me when you're ready to start your search.
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Originally posted on my Lake Havasu real estate blog here: http://homesforsaleinhavasu.com/2019/01/lake-havasu-market-report-december-2018/.