Buyers seem to be getting off the fence and taking advantage of affordable home prices and low interest rates here in Lake Havasu City. The Lake Havasu Association of Realtors reported 105 sales in February, with another 153 sales pending escrow. It was also reported that the number of active listings in Lake Havasu has decreased. Foreclosures are still driving the market here in Lake Havasu as well as other parts of the nation. More foreclosure properties will be hitting the market and that trend will most likely continue for another year.
Many lenders placed a moratorium on foreclosure proceedings until the Obama administration announced its plan to help distressed homeowners. The Homeowner Affordability and Stability Plan (HASP) was announced last week. The plan gave banks guidelines for loan modification and incentives to help at risk homeowners. Properties which were on hold and do not qualify under the HASP program will be hitting the markets nationwide in the next few months.
The delinquent rate nationwide is up, but the foreclosure rate for sub-prime loans has held steady for several months. The increase in delinquency rate seemed to be more economy driven rather than attributed to sub-prime loans. The sub-prime foreclosures have peaked and will continue to decrease. Until all of the sub-prime loans are sifted through, foreclosures will continue to drive the market. That trend is expected to continue for about another year. This would indicate that the end of the depressed housing market may be in site.
RealtyTimes.com reports there are several indicators showing the housing market improving on a national level, especially in the hard hit Riverside-San Bernardino, California area. While foreclosures will continue to impact home values, it is hoped that the slow down in the pace of foreclosures coming on the market will help stabilize property values. If this is the case, the Lake Havasu market may be bottoming out. Our current market is at its best in years for home buyers. The median price in Lake Havasu for a single-family residence is $149,900. Interest rates are hovering at the 5% level and the government is offering a tax credit* for first-time home buyers.
Getting off the fence and buying a home in 2009 looks to be a very smart idea.
Donna Ball, Lake Havasu City real estate
Tax Credit Note:
First-time homebuyers is defined as anyone who has not owned a home in the last three years.
The tax credit is 10% of the sales prices of a home up to $8,000.
The tax credit does not carry a repayment requirement.
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