We are living in some unprecedented times right now. Who would have thought major cities like New York, San Francisco, Los Angeles, and Seattle would virtually shut down? With a global pandemic like COVID-19, businesses, organizations, and individuals must navigate a "new normal". The mayor asked that restaurants shut down the in-house dining and stick to delivery or to-go orders only. He also requested that we begin practicing social distancing. That distancing means keeping at least six feet from others and only leaving your house for essentials (like food and medicine).
Playdates must wait. Organizers canceled any upcoming events that involve more than 10 people gathering in one place. It also affects how we conduct our real estate business. But believe me when I say that we are taking extra precautions to keep our clients safe. The Lake Havasu Market Report for March 2020 showed a drop off in sales and inventory last month. That might have a little bit to do with the Coronavirus frenzy going around.
Lake Havasu Market Report for March 2020
March 2020 Home Sales
According to FLEX MLS, a total of 208 single-family homes were sold in Lake Havasu City last month. That marked a 6.3% decrease from the same time last year. The COVID-19 scare might have had a little something to do with it. Even though we started off the year with one-third more sales than in January 2019, February's home sales dropped off almost 5% from the previous year. Still, we ended the quarter with almost 6% more total sales than in Q1 of 2019. Pending sales decreased by 15.7% last month (from 255 in March 2019 to 215 in March 2020).
March 2020 Sale Prices
Even with sales on the downswing, Lake Havasu home prices continue to climb. The median sale price came in at an even $300,000 (the exact same median sale price as January 2020, by the way), a 7.62% increase from the same time last year. It also marks a 6.7% increase from February's median.
March 2020 Inventory
Low inventory levels keep prices steady for now. Last March, the MLS reported 4.75 months of inventory available. In March 2020, that shrunk to just 3.29 months on hand. It even fell off slightly from February 2020's 3.31 months available. The median days a home spent on the market before going under contract decreased from 29 in March 2019 to just 23 in March 2020. That's just over three weeks from the time a property hits the market until the time it locks in a buyer.
What Buyers Need to Know
Just a couple of weeks ago, the Federal Reserve lowered the benchmark interest rate to 0%-0.25%. While this may or may not have an impact on interest rates for mortgages, it does affect the prime interest rate used by banks for things like credit cards, car loans, and HELOCs (Home Equity Line of Credit). When the Fed lowers its rate, these rates follow. However, when it comes to mortgage loans, that gets a little trickier. Right now, Wells Fargo continues to show a 30-year fixed-rate loan at 3.5% for borrowers with good credit. That has stayed steady at 3.5% since the beginning of the year. The good news for buyers is that there are homes currently for sale on the market. We've implemented safer practices for showing Lake Havasu City homes during the Coronavirus pandemic. So, if you're interested in seeking out a new house before the summer heatwave hits, take advantage of great interest rates now and contact me at (928) 208-5184 or via email to set up some private tours. I'd love to show you what's available here in Lake Havasu.
Visit any of my Lake Havasu real estate sites below for more information on the Havasu market:
Liz Sells Lake Havasu
Homes for Sale in Havasu
Havasu Area Homes
Just Call Liz
Originally posted on my Lake Havasu real estate blog here: https://havasuareahomes.com/lake-havasu-market-report-march-2020/.
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