July 29th, 2010
Here’s a tidbit most folks probably do not know . . . an easy to remember “Rule of Thumb” that says When mortgage interest rates rise by 1 percentage point buyers lose 10% of their purchasing power.
Conversely, when interest rates drop by 1 point a buyer gains purchasing power. However, given that today’s mortgage interest rates are the lowest in history I think it is safe to assume that rates are only going to rise in coming months & years. Certainly anyone who wants to buy a home will benefit by moving forward and locking in an interest rate near the current low rates instead of waiting for inevitable rate increases.
Case in point:
If a buyer can comfortably afford a mortgage payment of (about) $1,000 per month, in today’s market with a 4.5% loan they can carry a $200,000 mortgage. Assuming a 20% down payment this translates into a $250,000 home. If one waits until interest rates rise to 6.5% but wants to keep the mortgage payment roughly the same, the loan amount would drop to $160,000 – so with the same $50,000 down payment the home purchase price would need to be $210,000 or less. At 8.5% the affordable mortgage amount plummets to about $130,000.
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July 3rd, 2010
Here’s a recap of the current Real Estate Market Statistics & Trends in Bullhead City / Ft. Mohave:
CURRENT MARKET STATISTICS
Residential Homes Currently Listed for Sale = 786
* Homes Sold in past 12 months = 1344 (average 112 per month)
* Homes Sold in past 6 months = 707 (average 117 per month)
* Homes Sold Last Month = 119
* Average Interest Rate 30 Yr. Fixed (Last Month) = 4.74%
Based on current inventory of homes listed for sale compared to rate at which they have been sold over the past twelve months, we have about a 7 month supply on hand, indicating we are back near a balanced market. SELLERS – Good News – the current inventory supply is lower than at any time in over 3 years. This enhances the odds of selling and indicates prices can grow again based on normal supply & demand effects. BUYERS – You should not wait any longer to get in, as continuing reduction in inventory means prices may start moving up. And we all can agree that Interest Rates will climb – the current rates are the lowest in history, and can only go up.
MARKET TRENDS & HISTORICAL DATA
Homes Sold This Year:
January – June ‘10 = 707
* Average days on market = 143
* Median Sales Price = $98,900
* Average Sales Price = $114,068
* Average Sales Price/List Price Ratio = 94.5%
* Average Interest Rate 30 Yr. Fixed = 4.95%
Home Sales Last Year:
January – June ‘09 = 524
* Average days on market = 150
* Median Sales Price = $125,250
* Average Sales Price = $148,599
* Average Sales Price/List Price Ratio = 95.3%
* Average Interest Rate 30 Yr. Fixed = 5.05%
Home Sales 2 Years Ago:
January – June ‘08 = 425
* Average days on market = 159
* Median Sales Price = $158,000
* Average Sales Price = $185,491
* Average Sales Price/List Price Ratio = 94.4%
* Average Interest Rate 30 Yr. Fixed = 5.99%
Current results are encouraging, seeing the number of units sold this year being ahead of the past 3 years. With record-setting low interest rates we should expect to see our local real estate market continue to become healthier. Let’s all hope that those interest rates remain under control and that employment numbers begin to improve quickly. The return to a healthy real estate market relies upon both affordable interest rates and a busy fully employed workforce.
Keeping the value of long term real estate investments in proper perspective, take a look at these numbers from 2000:
Home Sales 10 Years Ago:
January – June 2000 = 571
* Average days on market = 159
* Median Sales Price = $66,500
* Average Sales Price = $82,112
* Average Sales Price/List Price Ratio = 96.4%
* Average Interest Rate 30 Yr. Fixed = 8.29%
Don’t forget – if you or anyone you know needs real estate services to buy or sell – here in Bullhead City or anywhere else – contact me and I’ll get to work for you !! The highest compliment that I can receive is a referral to one of your friends, relatives or business associates. A referral is when you send someone you care about to someone you trust. Thank you for your trust and confidence.
(Data reflects residential sales reported to Western Arizona REALTOR® Data Exchange as of 07/03/2010. Interest rate information from Freddie Mac.)
Tags: Bullhead Real Estate Market Stats, Real Estate Market Statistics & Trends
Posted in Market Trends and Stats, Real Estate Market | No Comments »
June 4th, 2010
Here’s a recap of the current Real Estate Market Statistics & Trends in Bullhead City / Ft. Mohave:
CURRENT MARKET STATISTICS
Residential Homes Currently Listed for Sale = 766
* Homes Sold in past 12 months = 1321 (average 110 per month)
* Homes Sold in past 6 months = 703 (average 117 per month)
* Homes Sold Last Month = 112
* Average Interest Rate 30 Yr. Fixed (Last Month) = 4.89%
Based on current inventory of homes listed for sale compared to rate at which they have been sold over the past six months, we have about a 7 month supply on hand. Looking at a full 12 month pace (which eliminates seasonal fluctuations) we also have a 7 month supply on hand, indicating we are back to a balanced market (supply in the 6 – 9 month range). SELLERS – Good News – the current inventory supply is lower than at any time in over 3 years. BUYERS – You should not wait any longer to get in, as the reduction in inventory means prices are going to start moving up. And we all can agree that Interest Rates will climb in 2010.
MARKET TRENDS & HISTORICAL DATA
Homes Sold This Year:
January – May ‘10 = 588
* Average days on market = 141
* Median Sales Price = $99,950
* Average Sales Price = $115,314
* Average Sales Price/List Price Ratio = 94.5%
* Average Interest Rate 30 Yr. Fixed = 5.00%
Home Sales Last Year:
January – May ‘09 = 428
* Average days on market = 148
* Median Sales Price = $125,000
* Average Sales Price = $151,061
* Average Sales Price/List Price Ratio = 95.2%
* Average Interest Rate 30 Yr. Fixed = 4.97%
Home Sales 2 Years Ago:
January – May ‘08 = 342
* Average days on market = 162
* Median Sales Price = $155,000
* Average Sales Price = $178,896
* Average Sales Price/List Price Ratio = 93.6%
* Average Interest Rate 30 Yr. Fixed = 5.92%
Our current results are encouraging, especially to see the number of units sold this year being ahead of the past 2 years. With record-setting low interest rates we should expect to see our local real estate market continue to become healthier each month.
Keeping the value of long term real estate investments in proper perspective, take a look at these numbers from 2000:
Home Sales 10 Years Ago:
January – May 2000 = 461
* Average days on market = 160
* Median Sales Price = $64,900
* Average Sales Price = $80,374
* Average Sales Price/List Price Ratio = 96.4%
* Average Interest Rate 30 Yr. Fixed = 8.29%
Don’t forget – if you or anyone you know needs real estate services to buy or sell – here in Bullhead City or anywhere else – contact me and I’ll get to work for you !! The highest compliment that I can receive is a referral to one of your friends, relatives or business associates. A referral is when you send someone you care about to someone you trust. Thank you for your trust and confidence.
(Data reflects residential sales reported to Western Arizona REALTOR® Data Exchange as of 06/04/2010. Interest rate information from Freddie Mac.)
Posted in Market Trends and Stats, Real Estate Market | No Comments »
