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June home sales down 22 percent
Realtor: Market in ‘very, very slow trend’ upward

By Diana Parker
Tuesday, July 15, 2008 8:36 PM MST

June home sales were down about 22 percent compared to the same month last year, according to statistics released this week by the Lake Havasu Association of Realtors.

Still, Ken Standahl, the association's executive director, said there are signs the market is in a "very, very slow trend" upward.

"The trend is in an upward position. The number of listings on the market seems to be, if not dropping, not increasing," Standahl said.

That's a hopeful sign in a time when there have been too many properties, including a glut of bank-owned properties, hitting the market, he said.

The number of active residential listings in June was 1,479 compared to 1,484 in May and 1,514 in April. The number of homes sold came to 95, while 122 homes sold in June 2007.

June's numbers follow two months when residential sales were close to last year's levels, according to association statistics. In May, 139 homes sold, compared to 146 in 2007. In April, 121 homes sold, three more than sold that month last year.

Year to date, residential sales are down 12 percent, with 649 homes sold compared to 736 in 2007.

The median sale price for single family homes in June was $212,000, down nearly 25 percent from June of last year. Year to date, the median sales price is down about 18 percent.

That number echoes the findings of an Arizona State University study that shows home sale prices in Phoenix decreased by 18 percent from April 2007 to April 2008.

The report attributes the drop partly to a wave of foreclosures hitting the market

"In Phoenix, you have a metro area where home prices are already sliding down, and then all of sudden, discounted properties are thrown into the market, too," said Karl Guntermann, the Fred E. Taylor professor of real estate at ASU's W. P. Carey School of Business.

The number of bank-owned houses on the market in Lake Havasu City is still "hundreds more than we'd like to see," Standahl said. However, he said, they now "seem to be selling off faster than they're coming on."

The fact that home prices have dropped begs the question why sales aren't on the rise.

Standahl said the broader real estate market in the region could be leading to fewer home sales in Lake Havasu City.

"A lot of our market is from California, and if they can't sell their home over there, they can't buy one here," Standahl said.

Standahl acknowledged stricter mortgage underwriting standards, and the perception that money is tight could also be discouraging buying.

"You're not seeing the normal moving up. People at this point are just hanging with what they've got," he said.

With home prices down, it simply isn't a good time to think about selling your home if you don't have to, Standahl said.

"But as far as buyers are concerned, you can't find a better market than we have right now," he said.

You may contact the reporter at dparker@havasunews.com.

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Reader Comments

The following are comments from the readers. In no way do they represent the view of havasunews.com.

Reader Comments

thegame wrote on Jul 22, 2008 5:33 AM:

" This is just the beginning and seems that the notices about the mortgage equity freezes are just getting out. "

ME wrote on Jul 20, 2008 8:54 PM:

" This a a good time to buy houses. those that cannot afford their homes any longer are being foreclosed on and renting. I hear the Canadians are buying up as much property as they can and renting it out. good for them. our citizens cannot afford to live in American any longer, because of the free handouts to illegals. took our jobs, our idenities, our food and now there is nothing left for our middle man. the soup lines are growing. "

mynameismud wrote on Jul 20, 2008 5:21 PM:

" havasu,love it or leeeeeeeeeeeeavit!! "

Jim wrote on Jul 20, 2008 4:13 PM:

" I don't think so. Way too much turmoil.

patrick.net/housing/crash.html "

Stop dreaming wrote on Jul 19, 2008 9:13 PM:

" The housing market is going to turn around alot sooner than you think.
Be ready, because after the election, things will skyrocket again with the housing and financial markets. If you can hold on to your house and afford to ride the wave.... Havasu will boom again in the coming years! Anyone that reads the markets and looks at the numbers, will tell you this is a fact. Dillards didn't move here ,either did Home Depot or Lowes to take a loss and turn face. "

laughing wrote on Jul 19, 2008 3:16 PM:

" fed up, you cannot get above an 80 to become a cop here. "

Sell the Hummers wrote on Jul 19, 2008 1:07 PM:

" All the RE Agents owing Hummers may need to sell them off, since commissions are going to be zero! Gonna be nice to see some of these guys/gals working the minimum wage jobs in town. "

working man wrote on Jul 19, 2008 11:00 AM:

" i just feel so bad for all the real estate people...........NOT!!!!!!!! "

ME wrote on Jul 19, 2008 5:42 AM:

" teachers have to live somewhere too. Where did THAT come from?????????? "

BeenHereForever wrote on Jul 18, 2008 8:42 PM:

" Teachers who tell you they can't afford homes...my friend is a loan officer at a local bank and he says he's done plenty of loans for teachers. "

Desertrat wrote on Jul 18, 2008 4:56 PM:

" Wait- no one is blaming this on the police or the judge? Whoa! Let's wait and see, somehow this will be there fault too!!! "

ME wrote on Jul 18, 2008 10:57 AM:

" Home prices were over inflated for a number of years and now they are coming down to what they should be! Alot of people got wealthy, in a short time and made money off people who could not afford these homes/loans. That is why there are so many forclosed houses. It will take awhile, but the market will improve. and it will be equal to the wages. People are just afraid now and everyone is using their money to buy gas to get to work! "

Gracy Heart wrote on Jul 18, 2008 7:54 AM:

" STOP!!!!!we are the most popular resort town within a 350 mile range OK!Havasu will survive and those who stay and ride it out will benefit the most. Quit beating up on the Realtors they are the ones pushing the University and have contributed a lot over the years. Those SCHMUCKS making negative remarks need to pack up and head east. "

smarty pants wrote on Jul 17, 2008 5:38 PM:

" I am one of those people who will never uses my house as my ATM, I don't live above my means. I don't drive a fancy car or boat to impress any idiot who MIGHT be impressed by such an absurdity (these are not investments, people). Ya just gotta keep everything in perspective, but unfortunately, the United States has lost its perspective as far as what we consider "wealthy" and "comfortable" and we are always trying to keep up with the proverbial Mr. or Mrs. Jones. By the way, Mr. and Mrs. Jones are always in debt!!! Hey, I consider myself darn WEALTHY if I own no one a dime. HA! Who wins then? MOI. Not those pesky mortgage companies or the car companies or anyone else who makes a dime off interest! "

The numbers dont add up wrote on Jul 17, 2008 2:39 PM:

" To WHAT. I am talking averages. You may be an exeption due to tenure or specialty(ER,OB) or per diem rates. Do you rent or own and when did you purchase. Nurses have had an advantage in some areas due to shortages. That trend is changing due to smaller colleges now offering nursing programs that will saturate the markets and lower wages. MCC is a good example. Don,t think that our local health care markets will not take advantage of the MCC nurse factory. There is currently a housing surplus and that surplus is overpriced. In most occupations, wages have been stagnant while the price of homes has risen substantially. If you bought prior to about 2002 and you have not used your equity as an ATM you should be ok. If you purchased after 2002 and have to sell you may be in trouble. I agree this article is spin on what will continue to be a down market for at least 18-24 mos. "

WHAT wrote on Jul 17, 2008 1:15 PM:

" What? Nurses can't afford homes?? Not sure where you are getting your info, but some of us are living fat and sassy, thank you very much! "

The numbers dont add up wrote on Jul 17, 2008 11:08 AM:

" The new firemen can't afford an average home in Havasu on the $14.10 per hr. they make. Nor can teacher's, police officers, nurses, skilled construcion workers, ect. ect. ect. Until the average median income can afford an average home, home sales and values will continue to fall. Right now it's cheaper to rent. Havasu is still way over priced due to over speculation. "

Fed Up wrote on Jul 17, 2008 9:32 AM:

" Well that would mean most of the people in this town don't have an 80 IQ "

Sip wrote on Jul 17, 2008 8:18 AM:

" I live out of state and am moving there in November. I read this paper everyday online,and man,is there alot on winers there. Grown up and deal with it,or leave. It is a free country. "

come on... wrote on Jul 16, 2008 8:42 PM:

" come on give him a break, you need only a 80 IQ to pass the test.. you need to kiss b... to get a job.. "

Fed Up wrote on Jul 16, 2008 4:36 PM:

" Don't bother taking the Fire Test cause you do need to know basic spelling. It is excessive not accessive. "

Pesky Varmint wrote on Jul 16, 2008 3:26 PM:

" Don't let them fool you.

They are putting lipstick on this pig.

It's a lot worse than they're painting it. This public release has the mission of trying to prop up prices. If you can't buy a home for a ridiculous bargain right now walk away from it. "

Only a realtor can spin that much wrote on Jul 16, 2008 12:41 PM:

" Sales drop 22% in June, down 12% for theyear, and sales are trending "in an upward position" because the market seems to be, if not dropping, not increasing."

So if I don't get a raise but I don't take a pay cut, my boss can say my salary is "trending in an upward position"?

The sad part is realtors are not at all embarassed by this nonsense. Maybe Standahl is out judge/cop basher. After all, both are seeing things that just aren't there. "

CalHav wrote on Jul 16, 2008 12:16 PM:

" Yeah, Put a couple of hundred thousand at Indymac instead. You want to sell me your house for what you paid for it 10 years ago. I'll buy it right now.Typical Havasu doomdayer "

Lawrence R wrote on Jul 16, 2008 11:38 AM:

" Great time to buy in Havasu. Prices on the bank-owned properties have to be just about as low as they can go. Bought a bank-owned in May for 1/3 of the cost here in Alberta, Canada. Looking forward to next winter in Havasu. Right now enjoying a beautiful Alberta summer. "

bert wrote on Jul 16, 2008 11:26 AM:

" Upgrade and Homeowner: Good for you. LHC will be back. Have no doubt about this. All you have to do is be patient and you will, some day, pull in your profit. "

Paul wrote on Jul 16, 2008 8:28 AM:

" I get such a kick out of realtors. They need to audition for Little Orphan Annie. "The sun will come out tomorrow" should be the theme song for realtors. Standahl's last comment of "you can't find a better market than we have right now". What will he be saying in six months when, the market goes down another 10%? "

Havasu Appraiser wrote on Jul 16, 2008 8:15 AM:

" Sorry, but Ken is doing the typical Realtor spin on the current market. Prices are going to continue to drop and there are absolutely no stats to show a "very, very slow trend" upward. This is a public disservice by the Realtor Board to say this kind of stuff. There is a second wave of foreclosures bigger than the first that will bring prices even lower! "

upgrade now wrote on Jul 16, 2008 6:19 AM:

" sure the home you have now may be worth less than at the peak, but ...IF you ever plan to move up, the savings on your 'dream home' will be a lot more that what you give up on your present home... this is the time to be buying up market, the window will eventually close!

we sold our condo and bought a great new home, that we never would have done in a 'normal' market. "

the real cause wrote on Jul 15, 2008 10:00 PM:

" Maybe the new fireman graduates can not get a job with the city because of the old guys accessive overtime. Viva wasting money on the fireman! "

HomeOwner wrote on Jul 15, 2008 9:16 PM:

" You people need to start buying up these homes before you miss out on the deals! Home prices haven't been this low in Havasu for a long time. Better get them while you can. You'll regret it if you don't. I bought a home I didn't think I'd ever be able to afford in Havasu. I thought I missed my chance when prices skyrocketed, but now I got a second chance and I jumped on it. "

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