A winter chill has settled into the Havasu real estate market. But that's typical this time of year. Sales took a serious downturn from this time last year. However, inventory and prices experienced a slight increase, according to the January 2019 Lake Havasu market report. Could this be good news for buyers?
January 2019 Lake Havasu Market Report
Lake Havasu Market Report - January 2019 Sales
According to statistics gathered by Flex MLS, sales dropped off dramatically from this time last year. While 201 Havasu homes were sold in January 2018, Flex MLS only showed 131 total sold in January 2019. That's a 34.8% reduction. Pending sales also experienced a downturn, with 202 recorded for last month (a 21.4% decrease from last January).
Lake Havasu Market Report - January 2019 Prices
Even with lower sales, prices still reported a slight uptick. The median sale price for a Lake Havasu home in January 2019 was $230,000, a 2.22% increase from the $225,000 of January 2018. While this marks a huge drop from the $274,950 median sale price shown in December 2018, that's typical for this time of year. If past market trends hold true for this year, we should see prices begin to creep up again from this month on.
Lake Havasu Market Report - January 2019 Inventory
We've had a low inventory of available homes on the Lake Havasu market for a long time now. That's part of the reason why prices have gone up while sales faltered a bit. Back in January 2018, Flex MLS only showed 4.14 months of inventory available. That rose 3.86% in January 2019 to 4.3 months available. That also marks a 19.4% increase from December 2018's 3.6 months. New listings rose by 6.1%, from 313 last January to 332 last month. The median amount of days a Havasu home stayed on the market before going under contract experienced a very slight uptick, from 40 in January 2018 to 42 in January 2019.
What Buyers Need to Know
The January 2019 Lake Havasu market report provided some good news for buyers. More available inventory may keep pricing increases to a minimum. Late last month, the Federal Reserve announced that they've decided to keep the benchmark interest rate at 2.25%-2.5% for the near future. That means that mortgage interest rates could remain steady for a bit. Currently, Bankrate.com shows 30-year fixed-rate loans at 4.5%. So, if you're interested in purchasing a Havasu home, now would be a good time to start looking. Contact me when you're ready to see what's available right now.
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Originally posted on my Lake Havasu real estate blog here: http://homesforsaleinhavasu.com/2019/02/lake-havasu-market-report-january-2019/.