Residential sales are still improving, and inventories are coming down

Residential sales for April were 151 compared to 117 for the same period in 2008. That's a 29% increase. Year to date sales for 2009 are 492 compared to 411 in 2008, a 20% increase. Active listings of Single Family homes is 846 with 95 being Foreclosed and 94 being Short sales. These are much lower numbers than the previous period. Vacant land, Commercial and Multi-family sales are still dragging. We are starting to see more investors getting into the market. Federal Reserve Chairman Ben Bernanke stated yesterday that he believed the Recession would end the later part of this year. That's the kind of news we need to hear, something positive.

National Real Estate News

From BusinessWeek Online

Sales of existing homes declined 3% in March, reversing February's surprising gain, the National Association of Realtors said on Apr. 23. But the market continues to show signs of stabilizing as first-time home buyers and investors jump in to scoop up bargains, analysts said.

Sales of distressed properties -- foreclosed homes or homes in danger of foreclosure -- made up about half of the transactions in March, according to a Realtor survey. And first-time home buyers, taking advantage of a new $8,000 tax credit, seem to be driving the market, the group said.

Sales of single-family homes, townhouses, condos, and co-ops dropped to a seasonally adjusted annual rate of 4.57 million units in March from a downwardly revised level of 4.71 million in February, and fell 7.1% compared to March 2008. However, sales of existing homes by comparison jumped an unexpected 4.9% in February.

Sales Update for April 2009

ALL CLOSED LISTINGS
Count	99
Listing Price Total	19,478,442
Listing Price Average	196,752
Selling Price Total	18,880,877
Selling Price Average	190,716
List-to-Sell Variance	6,036
List-to-Sell Percent	96.9
Average Days on Market	138

Sales Activity Update

Sales for the month of April are still on the rise and inventory on Single Family homes is declining. The number of active listings as of today is 900 with 99 being Banked owned. As you can see from previous Blogs, those numbers are steadily declining. Sales of Single family homes are up 18.07% from April 2008, and only down 10% from April 2006 when the market was strong. I think all this could lead to the opinion that the market is starting to turn upward. Selling prices are starting to get closer to asking prices, which could mean the days of "Low Ball' offers maybe over, although a buyer can always make any offer they want. We are also starting to see multiple offers on listings and in some cases, properties selling for more than the listing price.

Sales Update for Havasu

Sales activity for the month of April is still moving in a positive direction. Sales of Single Family Homes and Condos are up 18.37% over 2008 for the month so far. Year to date 2009 sales are up 16.33% over 2008. Commercial property sales are starting to increase, but Vacant land and Multi-family units are still slow. Inventories are starting to decrease, including the number of foreclosed listing. The number of current listings on Single family homes is 928 with 109 of those being Bank owned. This is a dramatic decrease from a few months ago. Basic Economic rules are as supply decreases and demand increases, prices tend to go up. With low interest rates and the First Time Homebuyers Tax Credit, it would appear that now is probably a good time to buy.

$8,000 First Time Home Buyer Tax Credit

1. The tax credit is for first-time home buyers only. The IRS defines a first-time home as someone who has not owned a principle residence during the three year period prior to the purchase.
2. The tax credit does not have to be repaid.
3. The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
4. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
5. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

This information is supplied from The National Association of Home Builders (NAHB) and is for general guidance only.

Lake Havasu City Sales Activity for March 2009

Things are looking up. Residential sales, which include single family, condominiums and factory build homes was up 15.45% over March 2008, and a 13.7% increase YTD 2009 over 2008. This is great news. The average Sales price in March was $194,563, compared to $176,758 in February. Average Days on the Market for March was 150 compared to 171 in March 2008.

What does all this mean? Well, it may be too soon to predict, but with interest rates at an all time low, an $8000 Tax Credit for first time home buyers in 2009, and a significant number of listings to look at, the market may be starting to move upward.

The most often asked question is How much lower will prices go? I don’t think anyone is willing to answer that question. A better question is When will interest rates go up?, and we all know they will. In the long run, that could have a bigger impact on a purchase.

A few years ago, people were coming to town looking to purchase property and prices were going up dramatically each month. The response was We should have bought last year or even Last month. That same response is going to surface in the coming months and years. Where is the bottom? Who knows?