2021 Tri State ReCap Real Estate Market Watch Report

2021 Tri State ReCap Market Watch

With the arrival of the New Year, our hopes soar that 2022 will mark the of the end for the COVID 19 crisis. So how was our local Bullhead City, Fort Mohave and Mohave Valley real estate affected during 2021? In a nutshell, the market followed in the path that we saw in 2020 in all areas: sales price, number of sales, new construction and the river homes experienced a staggering upswing. 

Single Family Overall

The average single family price is up over 41% from the previous year. During 2020 the overall average single family home sales price came in at $241,934 with the median sales price at $228,868. 2021 average single family home sales price increased to $342,870 with the median sales price at $306,929. The number of sales also bumped up from 1121 (2019) to 1290 (2020) to 1469 during 2021. That is a 14% increase in number of sales and a 41% increase in price year over year.  Although we did see homes coming to market they were being scooped up so quickly that were as few as 140 single family homes on the market to choose from at any given time. This was great news for all sellers as they had strong net amount on the their settlement statements. Although the buyers experienced some sticker shock the continued low interest rates bridged the gap as the buyers buying power. 

New Construction

New construction continued to be in high demand during 2021. 2020 had a reported 251 home sales with the average sales price of $299,558 and the medium of $290,000. As local builders experienced extreme material cost increases they buffered themselves and prices increased. 2021 average sales price increased to $336,662 and the median at $330,000. At first glance these prices seem very affordable but there are more few things that you need to know about the reporting. First and foremost, this is only a small sampling of the the new construction homes being built. Custom homes where contracts are between the builder and buyer are generally never reported to the MLS(WARDEX).  As the building process moves along, many times the buyers add higher end finishes which are paid through escrow but never reflective in the MLS. Thirdly the rules of the MLS are such that many of the sales are not reported until the home is completed. So the appraisers and those reviewing the data are always looking at up to 12 months of old sales prices. Now you know the clear picture so you can assume along with me that the number of new construction builds and the prices are much greater than the data reflects.

Riverfront Homes

Sales along the banks of the Colorado River continued to be strong. Prices zoomed as there always seemed to be multiple buyers for each home that came on the market. There would have been more sales if only there had been more inventory coming to market. Bridge to bridge there were 30 single family home sales. The average sales price for these coveted properties exceeded all past numbers at an average sales price of $1,146,291 and the median at $1,115,000. Michael and I have been tracking the river sales since 2001 and during 2021 the cost per sq ft ceiling was broken at $337.00 per sq ft. Highest sales price for the year was $2,395,000 and we are proud to share that Country Ranch Realty represented the seller on this one! Compare that with 2020 which reported 37 sales with the average price of $880,605 and the medium of $775,000.  The low sale was $449,900 while ceiling was broke wide open as the high sale for the year came in at $2,100,000. Thinking of selling, you should give us a call to get the job done.

We don’t usually report on land or manufactured home sales but we have to share this quick story with you. Team Fahey did help one of our clients successfully split their 20 acre river front parcel into 5 separate parcels. We were able to put all 5 under contract within 6 weeks. The parcels each have 131 feet of river frontage and sold between $810,00-$835,000. We closed all the deals by December 30 allowing 5 new buyers to start developing their riverfront oasis for the first of the year! Now that’s exciting!

Prediction

Where do we see the market in 2022. We expect the market to continue as it has for the past 2 years. Most likely our local real estate market will see an increase in the number of homes sales. Prices will likely increase as well . The experts predict that during the next 5 years we could see a rise between 22-26%. With inflation and rising interest rates on the horizon, we believe that people will leverage themselves by locking in at today’s cost.  It is mission critical for those who have the opportunity to do so. It’s going to get more expensive to purchase a home.

2021 was an amazing year for the Team Fahey. Thank you everyone for your referrals and repeat business. Without you we would never have the success that we have experienced all of these years. As we move into the 2022 we are all hopeful that we can see more of you without the mask. If you or your friends are thinking of making a move, we hope you send them our way and give us a call. 928-763-3363

Stay safe and have a prosperous year!

Michael and Petra Fahey with daughter Kelsey DeVine

Country Ranch Realty

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