While most of the attention has been on Hurricane Dorian, our local area experienced a monsoon storm of its own Sunday evening. Lake Havasu was hit the hardest suffering plenty of damage to boat docks, capsizing and damage to boats including the sinking of two 70 ft house boats. The storm swept across Mohave Valley leaving many of the residents without power for the night. Wind, rain and lightening was experienced by all!
Fortunately our real estate market not nearly as volatile as the weather. Like the rest of the nation we are enjoying the longest economic recovery in American history. Although the recession word is being used often in the news, it should be noted that an economic recovery ends when there is an economic slow down. An economic slow down consists of 2 consecutive quarters where the GDP slips. This is the definition of a recession, not a housing crisis.
During the 2008 recession leading economic experts listed a housing slowdown as the number one factor and a melting mortgage industry as the number two factor as causes of the recession.
With talk of a pending recession on the horizon, the same economic experts have listed a Trade War as number one and a Stock Market correction as number two and you should be glad to know that a housing slowdown came in number nine on the list. As we all remember the Stock Market did experience a correction last month. This being said, it is more likely that the coming recession will be more similar to the 2001 recession where the housing values increased to 6.6% which is almost double house norms.
The Bullhead City, Fort Mohave and Mohave Valley real estate market is continuing to see strong sales and prices. The single family for sale increased slightly during August to 312 from July reporting 299. We also saw an increased in homes under contract up at 192 during August from the July number of 186. While the number of homes closing escrow was down slightly our local market is on track to exceed the number of single family homes sales of 2018. The average sales price saw an increase during August. The increase was largely due to the 3 riverfront homes that closed escrow ranging from $640,000-$800,000. August reported the highest average sales price for the year at $256,740 and a median price of 239,950.
What does this mean to you if you are looking to buy? Don’t let the slightly elevated home sales prices push you onto the fence. Interest rates are at all time low and if you review an amortization chart you may be surprised that the interest rate can take more money from your pocket book over the course of time than a slight rise in housing prices. Give us a call and we will be glad to show you the numbers and help you into your next home.
What does it mean if you are looking to sell? Our local market is currently experiences a four month supply of inventory which is good news for you. Prices are also on the uptick and with interest rates low, this may be an optimal time to sell. Give us a call and we create a plan to make your sale a smooth one.
Thank you for your referrals and support.
And on a fun note, enjoy the game tonight!