Articles & News
Unprecedented sales increase has legs
The demand for, and popularity of, Lake Martin waterfront property has never been greater than what we have experienced over the last year, especially since March of 2020. Our review of key market metrics for the 12-month period ending August 31, 2020, reveals dramatic increases over the same period last year. For those who follow our reports, last year was a very good year, too!
A look at the year-over-year numbers
- Gross residential sales volume was $282,866,420—a 46.4% increase
- Gross single family detached sales volume was $246,735,897—a 47.4% increase
- Gross sales volume for waterfront homesites was $30,075,826—a 57.3% increase
- Total unit sales were 513 units—a 29.55% increase
- Average sales price for residential single family rose to $775,899—a 14% increase
- Residential sales-price-to-list-price ratio rose to 95.9%
- Residential inventory dropped to a 2.56-month supply from an 8.92-month supply last year
Deeper dive into the data
The inventory metric will give you an indication of what to look for in the months ahead, especially when you look a little deeper into the available inventory and recent sales. At the end of August, only 91 residential properties were on the market.
Over 30 of those 91 properties had a contract with a financing or inspection contingency. If 80% of those close, that would reduce the available inventory to 67 available properties. That means that the supply could be consumed in less than two months if no new property is introduced to the market.
This low supply has two implications. First, the low supply will provide support to prices already paid as well as future sales prices. The second implication is that when a properly priced property comes on the market, multiple buyers will rapidly submit offers. Our Realtors® are reporting multiple offers within hours of new property listings coming on the market.
We are also noting that the sales of homesites are mostly for custom construction. Builders are focused on producing with the large increase in custom homes. That means that there are fewer speculative homes being started to create the supply needed in the near term.
What to look for
We have seen waterfront inventory of all types reduced to historically low levels. Supply of newly listed property is not keeping up with the demand. Even developed homesites are in short supply. The homesite supply is barely keeping pace with demand.
With property in such high demand and supply so short, information is key. If you are looking for a lake property, we recommend that you reach out to one of our Realtors® so they can contact you as soon as a new property comes on the market.
With low interest rates (under 3% in some cases according to the 9-21-2020 Wall Street Journal), an improving economy, and the beauty of Lake Martin, we believe the demand will remain high. The question now is—will inventory be available to meet that demand?