Posted about 15 years ago

Seize the Day - Lake Havasu Part 2

A few weeks ago, I posted a blog entitled Seize the Day – Lake Havasu Opportunities Won’t Last Forever. At that time, I did not realize that there would be a Part 2. But, after reading the latest real estate news, I found that there was good reason to write a Part 2, or "the rest of the story" (for all the Paul Harvey fans).

There is much happening on the real estate front. So, deciding what to post today was rather difficult. I decided to post what I believe is the most urgent news and disappearing opportunities for Lake Havasu home buyers:

* Interest Rates are UP!
* First-Time Home Buyers Tax Credit - Time is Running Out

Interest Rates are UP

* Wall Street affects Main Street once again - Treasury Yield Bonds are causing interest rates to rise.
* Interest rates have jumped in the past 3 weeks from all-time lows to today's current rates.

~April rates were as low as 4.75%
~May rates were as low as 4.91%
~Today's Arizona rates are 5.375% - 5.875%

In my first Seize the Day post, I made the following statement: "seize the day – take advantage of the opportunity to get the lowest interest rates in 40 years!"

o Unfortunately, that day may already have passed.
o Rates are still lower than last year's rates (6.5%).
o Following a quick rise in rates, many times there is a fall back. However it is very unlikely that rates will fall below 5%.
o Higher interest rates mean higher mortgage payments.
o Higher interest rates mean qualifying for a lower sales price.
o Buyers have lost more than $13,000 in purchasing power in less that two weeks.

First-Time Home Buyers Tax Credit - Time is Running Out

* Escrow must close on or before November 30, 2009 to qualify for the tax credit.
* Loan processing times have, in some cases, increased due to underwriter scrutiny. Don't wait too long.

Tax Credit Advantages

o Dollar-for-dollar credit.
o Any unused portion will be refunded to the taxpayer.
o Can be used as a down payment and/or to pay certain loan fess when using FHA financing.

Seize the day – the opportunities to buy Lake Havasu real estate at today’s affordable prices will change.

* Today's median price is $153,000 while, in 2008, the median price was $255,000.
* Today's median price is $153,000, up $3,000 from a month ago.

Seize the day – the opportunities to choose from a large inventory of homes in Lake Havasu will disappear.

* Lake Havasu continues to see a drop in the number of homes on the market.
* April 2009 Inventory: 1,022 homes
* May 2009 Inventory: 969 homes
* Today's Inventory: 934 homes

Seize the day – the opportunity to take advantage of today’s buyer's market will not last forever.

* The market is stabilizing nationally.
* The market is stabilizing locally.
* The economy is expected to recover in the fourth quarter.
* The foreclosure rates are still extremely high, but the numbers are beginning to decrease.
* The real estate market is expected to make a full recovery by 2011.
* As the market stabilizes, inventory will decrease.
* As the market stabilizes, home sales prices will increase.

It is time to forget the doom and gloom. It is time to seize the day.

Donna Ball, Always on the Ball with Lake Havasu real estate

Seize the Day - Lake Havasu Part 2

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