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Market Report
Inventory additions stabilize the market


Published: 07.30.2024

The breakneck sales pace, with multiple offers on listings during the “limited inventory period” for waterfront property, has reverted to a normal and steady pace. This change came about due to an increase in listed inventory over what was available this time last year.

The increased level of available property, coupled with only a slightly higher sales pace (lower for the condominium/townhome classification), has changed the lake market. The data pulled for this period, as shown in the inventory-to-sales and sales-price-to-list-price ratios, indicates that the market has changed into a balanced market where neither the seller nor the buyer has the advantage.

For instance, the inventory-to-sales ratio shows that there is a 7.97-month supply of available residential property on the market. This compares with just a 4.73-month supply at this same point last year. Higher inventory should lead to more choices for buyers and the stabilization of sales prices, which we are seeing in the market this year. Inventory levels are still below pre-COVID levels, but finally buyers are seeing an increase in available property. (See chart below.)

 

 

The higher inventory noted above has resulted in a little more negotiation between buyers and sellers. The sales-price-to-list-price ratio tracks this dynamic. This year, the sellers of residential waterfront accepted 96.9% of their asking price, while last year they accepted 98.3% of their asking price. Average sales prices are still up 5.6% over the same period last year, but less than the double-digit gains notched in 2023 over 2022. We would describe a 5.6% appreciation rate for an investment that you use, like waterfront real estate, as normal.

While increased inventory for residential property has brought normalcy to that segment of the market, waterfront lot sales continue to impress with reduced inventory and a 100.3% sales-price-to-list-price ratio. The old saying, “They are not making any more land,” still holds true.

As usual for our monthly report, we have pulled data for waterfront sales for the most recent 12-month period, ending on June 30, 2024, as compared to the same period in 2023.* The key metrics for the market are shown below:

Residential Waterfront –
Including houses, condos, and townhomes

  • Volume – up 6.5% to $301,698,333
  • Property sales – up 1% to 253 sold
  • Inventory-to-sales ratio – up to a 7.97-month supply from a 4.73-month supply last year
  • Sales-price-to-list-price ratio – down to 96.9% of asking price from 98.3% last year
  • Average price – up 5.6% to $1,195,484
  • Number of properties on the market – up 70% to 168 properties

Single Family Detached Waterfront

  • Volume – up 8.5% to $279,543,533
  • Property sales – up 7% to 213 sold
  • Inventory-to-sales ratio – up to a 7.49-month supply from a 5.31-month supply last year
  • Sales-price-to-list-price ratio – down to 96.9% of asking price from 98.3% last year
  • Average price – up 1.4% to $1,312,411
  • Number of properties on the market – up 51% to 133 properties

Waterfront Lots

  • Volume – up 5.1% to $68,999,159
  • Property sales – down 5.3% – 94 in 2023 versus 89 in 2024
  • Inventory-to-sales ratio – unchanged – a 7-month supply from a 7-month supply last year
  • Sales-price-to-list-price ratio – down to 100.3% of asking price from 101.3% last year
  • Average price – up 11% to $775,271
  • Number of properties on the market – down two units to 52 properties

We are grateful that, in spite of higher rates, the market is still strong for Lake Martin, especially in single-family homes and lots. The only sluggish section of the waterfront market has been in condominium and townhome sales, which have underperformed compared with single-family detached homes.

We believe, like most real estate specialists, that there is pent-up demand for real estate on the lake due to previously low inventory levels and higher interest rates. Should the Federal Reserve ease rates in the fall and winter, we may be poised for increased sales volume and property values following that reduction.

If you have been looking for a Lake Martin waterfront home, now might be your best opportunity in years. For help finding the right place on Lake Martin, reach out to one of our Realtors® today.

 

*Our most recent summary of sales data for the 12-month period ending June 30, 2024, was derived from the Lake Martin Association of Realtors Multiple Listing service.

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