Market Update Feb 2012 BHC AZ

The median sales price dropped from January and the percentage of homes (79%) selling under $150,000 increased to an all time high, while the number of homes for sale dropped 61% from last year at this time
I continue to expect that as the inventory of homes for sale continues to drop and the sales continue to remain steady, prices should begin to come up. Well considering the Niagara Falls price drop we have been experiencing for years, I remain positive that these slight dips are merely bubbles in the brook. The two most perplexing changes are the large number of homes selling under the $150,000 price point and the fewer than 300 homes for sale. During the month of February homes selling under $150,000 made up 79% of the market with 50% of those homes being foreclosures and 7% being short sales. This is good news for the upper end of our market as most of these sales are what we now refer to as “normal” or “non distressed” sales. I wonder, if we had more of these homes on the market that were price well or had added value that the buyers were willing to pay for, would we have more sales in this price range? Has our inventory shrunk so far that we don’t have the right home for buyers in our area?
Currently there are 284 homes for sale in Bullhead City, Fort Mohave and Mohave Valley. Just looking at the month of February over the years the number of homes for sale is down to 284 from 451 last year; down from 456 of 2010; down from 777 of 2009; and down from 969 of 2008. Let’s look at February again and as mentioned the number of sales continue to either increase or remain consistent with 76 sales this month; 65 sales in 2011; 89 sales in 2010 (give some credit to the first time tax credit); 63 sales in 2009; and a measly 36 sales in 2008. I’m getting off tract but in 2008 we had 16.4 months of inventory contrast that number to the 4.8 months of inventory today.
I remember when the real estate bubble started in Bullhead City. The $100,000-$125,000 price range was always experienced the most sales. Suddenly there were no sales at this price point. Was there not a market for this price point? No, the homes in this price range did not exist and the new price point that saw the most sales was $125,000-$150,000 and on up the market went.
While statics are easily found on line and our median sales price rolls in at $95,000, I guarantee you that we will be hard pressed to show you homes in this price range today. If you choose to shop in this range you will be greatly disappointed as there are only 7 to choose from and you may run up against multiple offers and homes in disrepair. Don’t let the over rated median sales price fool you. The reality is that most of the homes creating this number are foreclosure homes in need of repairs. They require plenty of work and would be ripe for any Home Disaster DIY television show. Investors and cash buyers are quick to relay what a low price per sq foot they pay for homes. On the flip side, I have never had one relate how much they have earmarked to repair their homes.
Of the 284 homes currently on the market for sale, there is only one home built as recent as 2011, two built 2010, two built 2009 and a whopping six built in 2008. There are a handful of homes that can be built on a lot, but are not started. With home sale number remaining strong, inventory at an all time low I think it may be time to consider the new home or at least a non distressed home. Perhaps not the mega home of the pre bubble years but an affordable reliable home that can be purchased with a warranty instead of a bank “as is” addendum. Perhaps spending a bit more at the closing table instead of coming out of pocked thousands or tens of thousands during your first 90 days of home ownership may make more sense. And by the way, a few more dollars at the closing table at 4% interest for 30 years may be a better deal than hard cold cash spent on repairs.
Thank you all for your support and referral business. Call or email me with all your real estate needs.

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2nd Annual Havasu Island Balloon Festival & Fair

We invite you to join us for the

2nd Annual Havasu Island Balloon Festival & Fair

January 19 - 22, 2012

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Riverfront Home For Sale

Riverfront Home Sales Market Update

Bullhead City Lake Havasu City Real Estate

Riverfront home sales were strong for 2011; both in number and the cost per square foot rose 11% over 2010. Nearly twice as many riverfront homes sold during 2011 compared to 2010. With 21 single family home sales during 2011, and the average cost per sq foot at $170.00, it is clear that those who have dreamed of owning riverfront property in Bullhead City or Mohave Valley are taking the plunge. Of the 21 sales, 4 were foreclosures, 4 were short sales while the remaining 13 were regular sales. Of the 13 regular sales Real Living Country Ranch’s agents represented either the buyer, seller or both in 10 of 13 sales. Keeping in step with tradition, Real Living Country Ranch continues to successfully negotiate through troubled waters of appraisals and bank conditions to get these properties sold.

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Closer to 'Reality' in Arizona

Bullhead City Lake Havasu City Real Estate

Closer to 'Reality' in Arizona

But while the widespread legal delays may mask the underlying problems facing the housing market, Blomquist said that foreclosures would have fallen in 2011 regardless -- just not so dramatically.

For a sense of what the road to recovery really looks like, Blomquist offered Arizona, another state suffering from high foreclosure rates, albeit under different circumstances than Florida.

Foreclosures are down there, too, but as a non-judicial state, Arizona has been far more expedient in getting distressed properties on the market and out of the courts. The average foreclosure process in Arizona takes 173 days, far below the national average of 348.

Not surprisingly, Florida is "ground zero for dysfunctional foreclosure processes," Blomquist said. While there has been almost a 63 percent decrease in foreclosure activity over the last year in the hard-hit state, he said that the time it takes to complete the process has gone up 48 percent in the same time period. From start to finish, he said, foreclosures take an average of 806 days in the Sunshine State -- the national average is 348.

December marked a 49-month low for monthly foreclosure activity nationwide. The state with the longest foreclosure processing time by far is New York, with an average of 1,019 days to completion in the fourth quarter. New Jersey and Florida rounded out the top three with 964 days and 806 days, respectively.

Market Update

Bullhead City, Fort Mohave and Mohave Valley, Arizona real estate markets closed 101 single family homes for the month of June.  Median sales price slid back to $115000.  Since 73% of the homes sold in the month of June were under $150,000 this is not too surprising.  The market enjoyed two riverfront home closings in June, which Real Living Country Ranch agents brought the buyers, and an additional 7 homes selling for over $200,000. 

The month’s supply of single family housing inventory continues to drop.  During June 2010, the Bullhead City, Fort Mohave and Mohave Valley Arizona experienced 5.0 months of inventory, while this year our local market is at 3.2 months of inventory, the lowest in years.  The number of days on the market   dropped from 144 in May to 84 during June.  I believe this is due to the small number of short sale closing that occurred during the month.  Unlike the last two months where short sales claimed 10% of the sales, May short sale numbers dropped to 4% of the market.  (Short sales take longer to close than the standard sale) 

With the inventory dropping and the sales remaining strong it is clear for many, Bullhead City, Fort Mohave and Mohave Valley is the place to buy real estate.

The 4^th of July holiday weekend has started the month out strong.  Our phones are ringing at Real Living Country Ranch.  Multiple offers continue to reign supreme for properties that are priced right. 

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