Key Metrics are in Plus Territory

Market Report

Before we take our monthly look at how the Lake Martin real estate market is doing, we want to encourage you to stay safe in the coming weeks. We are hopeful that the Coronavirus event will be a brief, pre-season pause before people come to enjoy the lake in what promises to be a great summer. We look forward to seeing you here—safe and healthy!

A look at the numbers

When looking at the last 12 months of activity, we view the data as “pre-virus” numbers. That is, we don’t think there is any impact on sales or activity over the last 12 months from the Coronavirus. We will be using these numbers as the baseline or the “before the virus event.” In future reports, we will try to help determine what effect, if any, the virus may have had on our market.

Waterfront sales for the past twelve months, ending on February 2020, have been very impressive over the same period the previous year. Total residential sales volume increased 21.9% over the same period the previous year. The number of sales also increased 24.7% (72 additional sales) year over year.

When looking at current inventory, there is some good news and some bad news. If you are trying to sell a property, you have less competition. Currently, there is a 6.05-month supply of residential property available versus a 9.48-month supply at this same time last year. Less competition increases the likelihood that a properly priced lake home will receive an offer resulting in a sale.

If you’re a buyer, you have more potential purchasers considering fewer properties. That means that the properly priced lake home you saw today may not be available next week.

Prices are leveling off

While the median price for residential waterfront properties increased 4.8% over the same period last year, we have noted that the rate of increase has slowed from the double-digit increases of last summer/fall. The current rate of increase of 4.8% is normal for our market. We will be watching this metric closely over the next several months as a measure of market health in addition to overall sales volume.

Comparable sales data provides clarity

For those interested in buying or selling property, there has been an abundance of recent sales that provides clarity on fair sales prices. With over 363 waterfront residential and 55 waterfront lot sales over the last year, there is ample recent data to set a fair sales price.

We have found, with almost every property viewed, that comparable properties have sold within the last six months. That means buyers and sellers can be confident that a price is fair.

What do we expect?

Recent activity, even with the impending self-imposed quarantines, has been brisk. Some of this is due to the strong market momentum, higher lake levels and very attractive interest rates. We also think some of this recent activity is due to unsatisfied buyers from last year who are now able to purchase newly listed properties.

We think the virus will cause a pause in activity over the next 30 days or so. We believe that, after the virus event, people will return to the lake. Why do we think that? First, since Lake Martin is located in a fairly rural area and lake property tends to be fairly private, we think it is perceived as safer than a city environment.

Most of all, we also think that the lake is a great place to spend time and reconnect with those we care about. In fact, we hope that we will get to reconnect with you here at the lake very soon.

Be safe, follow the guidance from the CDC and the Health Department, and come see us soon at Lake Martin!