“Our friends Larry and Deb at AZBuilt Sports has put a fun challenge out there
for all us athletes – read below and let’s have some fun!
————————————–

A little fun challenge.

One lap of the Island.  You can bike the road, run the path, or paddle the
circumference (you can also swim it but we’re not expecting any takers on that).
Do one, two, or all three.  Do it as many times as you want.  Time yourself and
report back.  Fastest man and fastest woman for each discipline get a gift
certificate from AZBuilt Sports that’s good for 25% off anything except
outrigger canoes (not combinable with any other sales or offers).

THE RULES
-First contest ends 1/31/11.
-You’re keeping your own times on the honor system.  BUT, anyone can call
bullshit on your time if they feel its unrealistic.  If your time is challenged
you will have to back it up in front of witnesses.  You have to report your
times back to us, we’ll keep them posted at the shop.
-You can do as many or as few of the courses, and you can do each as many times
as you want, whenever you want.

THE BIKE
-Counter clockwise around the Island road (not the path).  Start at the
intersection (where it turns to Crazy Horse).  Dead stop, one foot on the
ground.  No drafting.  Finish back at the intersection.  About 3.75 miles.  Any
single bike.  You can do it on a tandem and we’ll post the time but you’re not
eligible for the prize.

THE RUN
-Counter clockwise around the Island path.  Start and finish at the
intersection.  3.66 miles.

THE PADDLE
-Clockwise around the Island.  Start and finish by the buoy at the Thompson Bay
entrance to the Channel.  5.61 miles.  Any single craft (tell us sup, oc1, ss,
kayak, or whatever).  You can do it on an oc2, oc6, or whatever and we’ll post
the time but you’re not eligible for the prize.

FINAL RULE
-Deb and I can post our times but we’re not eligible for the prizes.

2011, BE COMMITTED AND DO IT LIKE YOU MEAN IT.”

 

December 2010

Market Update

The housing market continues its uneven and gradual recovery without the aid of the tax credit. Experts believe this will be the trend moving forward. Interest rates hit another record low but have started moving back up as the overall economy improves.

Despite a less-than-expected employment report, consumers seem to be feeling brighter about the future. While the Consumer Confidence Index about the Present Situation rose only slightly, the Expectation Index showed substantial improvement. As we enter into the holiday gift-buying season, consumers are expected to be out shopping and buying more gifts for under the tree this year. Reports indicate a 13-24% increase in retail sales from last year. Consumer spending accounts for about half of all economic activity in the US; as long as consumers are spending and using debt responsibly, this is a positive indicator for economic growth.

This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue on a path to a complete recovery.

Home Sales

Home sales dropped slightly in October, compared with the previous month, despite a temporary moratorium on foreclosures, which have recently represented more than one third of sales activity. Sales were up 15% from July when the tax credit expiration caused a drop-off in sales. The most significant indicator of a market rebound, however, appears to be the October pending sales report. A 10.4% increase in pending sales, which measures homes under contract, signals stronger home sales activity in the coming months as the homes under contract close.

Home Price

Home prices have shown considerable stability when compared with the previous several years. October’s median home price declined slightly, down less than 1% from the previous month and year. A recent study shows an increased interest in smaller homes. Smaller homes often mean smaller price tags, depending on location. While the market currently provides many opportunities for buyers, sellers look forward to the general trending upward of home price as the market’s stability without government support grows deeper roots.

Inventory

There are fewer homes on the market. Total inventory fell to 3.86 million in October from 4 million in September. The month’s supply* of homes on the market fell to 10.5 months.  While still at a relatively high level, months of inventory has shrunken substantially since July’s 12.5 months. As lending standards continue to loosen and return to historical norms, more people will be able to buy their first home, move up, or invest and take advantage of the abundant opportunities in the current market – including  historically low interest rates, highly affordable prices, and an ample but shrinking selection of homes.

* Month’s supply of inventory measures how many months it will take to sell all the homes that are for sale, if no new homes come on the market and buyers continue to buy at the same pace or rate.

Affordability

Housing is at record affordability levels. Prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The home price-to-income ratio, 13.5% in October, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are anticipated to begin drawing affordability back up toward more normal levels.

Source: National Association of Realtors – October housing data released November 23.

Mortgage rates hit another record low of 4.17% on November 11 after which they rose to close to 4.4% for the remainder of the month. Historically low rates have contributed to real savings for buyers who will continue to realize those savings for as long as they own the home. As overall economic recovery gains traction, rates must rise to keep inflation in check. Industry economist Lawrence Yun anticipates rates to be between 5.4% and 6% by the end of 2011.

Source: Freddie Mac, Rates as of December 2.

Prime Time to Buy

Homes Have Never Been More Affordable

For most individual home buyers, there are only a few factors that really matter:

• Can I afford this home?

• Is it a good investment?

• Does it meet my family’s needs?

So it’s a bit surprising that the most important housing statistic has gone largely unreported: homes have never been more affordable.  Affordability, measured by the median mortgage payment on the current median-priced home ($171,000) as a percentage of the median household income ($62,141), is lower than it’s been in a generation.  The chart below shows affordability at a record level, having significantly improved since the height of the recent housing boom in 2006.

Happy Holidays!  We are ecstatic to share some exciting news with you this season.  The Concierge Service Team has joined Keller Williams Arizona Living Realty.

What’s interesting about real estate is there are lots of facets to it.  Most traditional “agents” are generalists, they tend to work with buyers, they work with sellers, they handle escrows, and they do advertising and marketing.  The bottom line is, that works okay until you’ve got more than one or two clients.  Then the reality is that there are just not enough hours in the day.  The Concierge Service Team is a team of specialists, wherein we each specialize in different aspects of the real estate business.  Dominic Labriola is our Team Leader, Dodie Gildea is our Listing Specialist, JoAnn Messer and Heidi VanderJagt are our Buyer’s Specialists.  Being a part of a team means that we can focus 100 percent of our efforts on our specialty ensuring that the other facets of the business aren’t being ignored.

At Keller Williams Realty, we are real estate consultants.  We are not agents.  We are not salespeople.  We have a culture and belief system rooted in win-win transactions executed with integrity, commitment, creativity, trust and teamwork to successfully serve our clients’ best interests.  While our team already has a longstanding reputation for fair and honest dealings, we’ve joined Keller Williams Realty and re-organized our team in the spirit of the Keller Williams belief system employing the systems outlined in the business plan created in the Millionaire Real Estate Series of books written by the co-founder of Keller Williams, Gary Keller.

We are pleased to announce this exciting advancement in our careers.  We hope that you share in the excitement of the positive things that will result for our clients and our team with this change.

Merry Christmas and Happy New Year to you and your family!

Dominic Labriola, ASSOCIATE BROKER | TEAM LEADER

Dodie Gildea, REALTOR | LISTING SPECIALIST

JoAnn Messer, REALTOR | BUYER’S SPECIALIST

Heidi VanderJagt, REALTOR | BUYER’S SPECIALIST

www.KWConcierge.com

928-854-5511

These numbers show us that prices are almost half of what they were in the peak of the market during 2007.  You read that right – HALF.  You can buy a home for half price right now.  Really!  No wonder it was our most active April in years.  We need some inventory though – there aren’t a whole lot of homes to choose from.  You know how scarcity works too – this could signal a rebound on prices.  At the minimum this means that the price slide is probably over.  Now is the time to buy a home for the cheapest you’ll likely ever get one in Lake Havasu City.

Click on our “Search The MLS” button on www.HavasuHomeTalk.com or give us a call at 928-854-5511 and we’ll set you up with a customized profile on our website so that you can see all of the listings available in Lake Havasu City.

What does this data tell us?  Lake Havasu City is ON SALE!  We had our busiest March in the last 5 years, with 176 units selling at an average sales price of $188,610.  This is the lowest price per square foot we’ve seen in the last 5 years.  The inventory is the lowest it has been in years also.

MLS # 839458,  $ 119,000,  2 Bedrooms, 2 Bathrooms, 2 car garage, Fenced rear yard, backs to a wash.  Great southside neighborhood

MLS # 833759,  $129,999,  2 Bedrooms, 2 Bathrooms, 2 Car garage.  Incredible location backing to a deep wash with spectacular views.

MLS # 827122,  $749,000,  3 Bedrooms, 4 Bathrooms, 2 Car garage, RV Carport, 2 car porte-cochere,  1/2 acre fully fenced and gated estate, spectacular lake and golf course views.  Completely unique.  Incredible architecture.  One of a kind.  This house could never be duplicated for this price.  This is one of my favorite properties in all of Lake Havasu City.

Property taxes apply to real property, as well as secured and unsecured personal property. Secured personal property refers to improvements attached to the land. Unsecured personal property refers to equipment or other property not attached to the land. The tax base is equal to the full cash value or market value of all real property in Arizona and is the starting point for determining taxable value. The net assessed value, or the amount to which the actual tax rate is applied, is the product of the full cash value multiplied by an assessment ratio that varies by property class.

Arizona’s property tax system classifies property according to its usage. Each class of property is assigned an assessment ratio, ranging from 1 percent to 25 percent. The assessment ratios are applied to both primary and secondary values of a property and determine the property’s net assessed value. The same tax rates apply to net assessed value for all property classifications.

The two residential classes are:

Class 3 – Residential non-rental property (owner occupied) @ 10%

Class 4 – Residential rental property @ 10%

From what I gather from the Assessor, the residential rental property classification is not eligible for the exemption of education taxes.  If you rent out a residential property that you own in Lake Havasu City, make sure to notify the assessor of that so to avoid any fines the county might try to assess for improperly stating the class of your property.

Lake Havasu City real estate prices are low, Homes are selling for about 96% of the list price, the inventory available is the lowest it has been in years and the homes are on the market for less time than in any of the previous five years.