River Cities Business Journal: Cover Story

Havasu home sales still in a slump; Commercial permits up 27 percent over year ago

Today's News-Herald

LAKE HAVASU CITY - Heading into the final two months of the fiscal year, new home starts are almost a third off the pace of last year.

Through May, there were 101 permits for single family homes issued, compared to 293 issued through May 2007.

A total of 11 single-family home construction permits were issued in May, with a total value of $2.3 million. That's a drop of more than 50 percent from the same time last year.

On the sales side, there were 167 total sales in May, down 13.9 percent from last year.

However, residential sales fell off at a much lower rate, just 4.8 percent from last year. There were 139 homes sold in May of this year.

Home sales totaled $33.4 million according to the Lake Havasu Association of Realtors, with the average sales price in $240,400 and the median price $209,500 in May.

Just as in permits for new construction, commercial sales were the big winners. Commercial sales went up 27.3 percent in May of this year, totaling $2.6 million. And commercial sales year-to-date continues to outpace 2007, with 48 units sold totaling $10.6 million.

Lake Havasu City's Development Service Department is reporting that building permits were issued in May for the new Anderson Toyota dealership and a 48-bed memory care facility.

Anderson Toyota is the anchor at the Automotive Galleria located just north of the Shops at Lake Havasu and across State Route 95 from the airport.

The Anderson Toyota project is listed at a value of $4.02 million.

The Automotive Galleria is a triangular parcel, extending from the northern boundary of the Shops at Lake Havasu to the intersection of SR95 and London Bridge Road. The 37.38-acre parcel is split into 12 lots, with lot sizes running from 1.3-acres up to Anderson's 8-acre parcel.

The smallest parcel has been dedicated to the city for a new fire station when need justifies construction.

The memory care facility, to be located at 320 N. Lake Havasu Ave., has a listed value of $4.04 million.

Including additions and alterations, the 21 commercial projects permitted in May are double in worth the new home starts reported by the city. Havasu Regional Medical Center received a pair of permits for its upgrade. The Intensive Care Room remodel and Cardiac Rehabilitation units have a combined value listed at $250,000.

The hospital has a number of planned upgrades starting with a remodeling of the west wing in late 2007. Also planned for expansion is development of the third floor, with an additional 43 new beds.