Bullhead City Real Estate Market Update

Michael and I hope you enjoyed your holiday a season and are in full swing with 2020!  We think its going to be a great year for us and the local real estate market.  As you can see by the new logo, we have re-opened Country Ranch Realty and look forward to helping you  with all your real estate needs. 

I have attached a set of slides that go along with this re-cap which are mentioned in the summary below. So let’s get on with the re-cap for real estate in the Tri State Area.

Over the past few years there has been talk of a recession.  And with the real estate crisis which started in 2008 still lingering in the minds of many, I have to remind everyone that the definition of a recession is two consecutive quarters where there is a fall in the GDP.  It is not defined by a real estate crisis.  In fact, of the last 5 recessions only 2 negatively affected the pricing of homes.  

There has been much discussion that the next recession may be so mild that it may be gone before we even recognize it.  But since this is an economic briefing I think it is note worthy to mention that the analysis’s are now pushing back the chances of recession into 2021 and perhaps beyond.

Housing continues to remain solid for the US economy and I believe the same is true for the Bullhead City area.  Nationally home sales are projected to grow during 2020 while interest rates are predicted to remain low.  

Continued low interest rates and increased wages are both driving factors when it comes to buyers having a positive position when it comes to their buying power.  Projections indicate that we will see interest rates remaining low for the next two years.  

As you can see over the last 12 months 44 states had an increase in Home Equity which means that prices have been on the rise.

So let’s talk about our local real estate market.  When I talk about our local market I am including the re sale and new construction single family homes sales for Bullhead City, Fort Mohave and Mohave Valley.  I am not including manufactured homes, condos nor multi family.  

During 2019 the Bullhead City Board of Realtors reported 1210 sales which exceeded 2018 at 1116 home sales.  

Average home sale prices were also up with the average home sales price reporting at with an average price of 240,983 while 2018 reported with and average price of 228,295.  With sales up and the prices up and the earlier discussed slides all indicators are showing that the market is very bright for our housing market.  In fact, I believe the market is stronger than our data reports.  

Months of inventory.  During 2019 we saw an average of 318 single family homes on the market each month.  Not too surprising February had a spike of 365 as expected as home sellers tend to put their homes on the market for spring activity and a December low of 283 homes for sale.  Our market is healthy with approximately 4 months of inventory.  

Although the riverfront properties are a a very small slice of our market , I’d like to mention the them briefly.  2019 saw a tighter market when it came to home sales.  With only 17 homes selling during the year with an average sales price of $635,950.  This number was down drastically from 27 in 2018 with an average sales price of $642.444.  Inventory remained nearly the same for the two years with and average of 25 homes on the market in 2019 and 24 in 2018.  Although the number of sales were down they were in line with the recent past.  Not sure why the spike last year, but I do believe that there are just as many buyers on the fence but the asking prices, not the selling prices are up over 2018 by about 20%.  

As we know data is only as accurate as the data inputed.  I would like to point out that our MLS does allow for a listing to be entered into the system as “a home to be built on your lot.”  So although this home is not under construction, it could be.  Keep in mind that this type of listing does count as a home for sale.  So I would surmise that our actual inventory is tighter than the numbers show. 

As you drive through our local neighborhoods we see new construction all around us.  Interesting to share that only the new construction homes that are sold through a real estate brokerage are reported in my data.  When a buyer contract with a builder to build them a custom home, many of these are not entered into our multiple listing service. .  So our number of sales are actually higher than my numbers reflect.  This goes for the river as well.

In summary our market is strong and all indicators are that 2020 will prove to be a banner year for our area.  

Thank you for your continued support and referral business you send our way.  Without your support and help over the years we would not be where we are today.

Cheers and THANK YOU!

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