Expect inflation to increase and your dollar to be less.
This isn't completely true. I have a client that we have made 6 offers on different places in the Eastvale area of Corona at full price or over with 30% down and we still have not got a home in escrow yet. All of these properies have had 5,10,20 offers on them and one even had 28 offers. Now with that being said, these are homes in the mid to high $300's that 1 1/2 -2 years ago were in the 600's range.too many vacant homes everywhere for market to change , I remember when I bought my house 5 years ago within 24 hours of being placed on the market it had 7 offers on it ,pure luck I think that Iwas actually able to get it.had lost out on 3 others due multiple offers. thats unheard of in todays market
The leeway time between the passing of the ordinance and its implementation was supposed to help increase the number of building permits pulled. Schulz, himself, had predicted a rush of permits being handed out before the Aug. 1 deadline. This just did not happen.
According to Schulz, only three building permits were handed out for single-family homes in the month of June. The 2005 number of permits for single-family homes averaged about 75 per month, he said. As of July 1, only 104 permits for single-family homes have been issued for 2008, according to the city Development Services Department.
The decline in new home construction can be linked to the large number and plummeting prices of existing homes on the market. In June, the Lake Havasu Association of Realtors listed the number of total active listings at 2,732 homes, with 873 vacant land lots included. And 1,479 of the listings were residential.
The average selling price of the residential homes was down to $267,189, almost $60,000 from the June 2007 average price of $325,655.
In addition to the glut of existing homes on the market, the newly created impact fee will further hinder new home construction, some builders contend.
The cap for impact fees on new construction of a single-family residential home is $6,000. The city council worked to reduce that amount. The fee for a single-family home for 2008 would be $2,213, with multi-family homes incurring a fee of $2,145. These figures will gradually go up 25 percent each of the next two years. A single-family home would have a fee of $4,423 in 2010.
Meanwhile, Workforce Arizona recorded a loss of 700 construction jobs in Kingman and Lake Havasu City for the month of June. Construction jobs have declined in both cities for 10 straight months. Schulz said construction workers have to look elsewhere for work, which could cause many families to leave the city, further damaging the real estate market in the city.