Summer results impressive
For us, the end of the summer real estate sales season is September 30. That is the latest date when the contracts written during the summer months close. Our fiscal year also ends on that date, so it is the perfect time for us to study the health of the market.
An analysis of the numbers indicates that the waterfront market is very healthy. Overall residential sales volume increased 15.7% over last year; single family home sales volume increased 10%; condo sales volume increased 64.8%, and lot sales volume increased by 18.4%.
The number of properties that sold on the lake was up as well with an increase of 8.3% in the total number of residential units. So, for those that tried to sell property on Lake Martin this year, they picked a great time to sell. That also means that we have increased investment in Lake Martin.
Property values on the rise
If you did not sell your property on the lake, you may be wondering what your property might be worth in today’s market. Owning real estate on Lake Martin is proving to be a very good investment right now. For the second straight year, lake property has experienced a very healthy level of appreciation.
Residential property average prices increased 6.8% to $624,747; condo prices increased 9.2% to $295,175; and waterfront lots prices increased a whopping 13.2% to $294,586. These increases are not unexpected given the increased demand from an improved economy coupled with reduced inventory levels.
What to expect next year
This will be one of the easier years to predict. Available inventory is lower, much lower, than that of this time last year–13.2% lower to be exact. That means that there will be greater demand for fewer properties. The early bird will get the worm – albeit a more expensive version than last year.
Fewer “ready to go” properties will be sold next year since builders are having a difficult time keeping pace due to more custom homes. More lots will be sold, given enough are developed, and more construction will take place for custom lake homes.
Newly listed properties will sell at a faster pace. For the few properties that did not sell this past summer, they will likely be pulled off the market and returned in the January to February time frame. Given the likelihood that rates will increase later in the year, it is likely more potential buyers will act early to tie down a property and a low interest rate before next season.
We plan on introducing new properties (such as the next phase of Willow Glynn) to the market next spring. If you want to hear about what is new for 2018, reach out to one of our Realtors at 256.215.7011 or send us an email!