Market Report

Key takeaways following summer sales season

For the national real estate economists who are reporting on a slower real estate market, we think they need to check our numbers. Clearly, the lake market would be a pleasant surprise for them as well as a reminder that, “all market conditions are local.”

This is the perfect time to look at key metrics now that another summer “lake season” is in the books, allowing us to make some observations about the lake real estate market. The numbers below are a summary of sales for the 12-month period ending on August 31, 2024, compared to the same period the prior year. (See note below.) We believe this gives us a much clearer picture of a month versus a month-over-month analysis.

Key Data

• Waterfront residential volume up 9.3% to $302,435,246 from $276,676,910 last year
• Waterfront residential unit sales up 11 units to 255 units from 244 last year
• Waterfront residential sales price up 4.6% to $1,186,021 from $1,133,922 last year
• Waterfront residential median price up 4.3% to $965,000 from $925,000 last year
• Waterfront lot volume up 37.3% to $87,897,410 from $$64,020,607 last year
• Waterfront lot unit sales up 9.5% to 104 units from 95 last year
• Waterfront lot average price up 25.4% to $845,167 from $673,901 last year

Key takeaways

The takeaways are that Lake Martin’s real estate market is performing better this year than last year in the residential category and much better in the waterfront lot category. The numbers above look good on the surface, but we like to do a deeper dive to look for trends that could give us a glimpse of the market for the coming 12-month period.

While the average price is higher than last year, the trajectory of the increase has leveled off. For instance, average price for the 12-month period ending August 31, 2023, was 12.1% higher than the average price in 2022. This year, it was just 4.6%. While that is still an increase, it has dropped 3.6% from the all-time-high average price recorded this past May.

While the average price dropped slightly from the all-time high, the median price rose to an all-time high in our most recent data. We have found that the median price is the best indicator of overall market strength and value. Half of all waterfront residential is selling above $965,000 which is a huge increase from two years ago, when the median price was just $802,173.

This suggests to us that persistently high interest rates, the election, and the current economy have affected the market over the last 60 days, but not nearly as much as they affected the rest of the country. There is no doubt that a rate decrease by the Fed, a clearer political outcome, and a stable economy would likely enhance demand.

Key areas of market activity

The big news in the data above is the robust increase over the last 12 months in the sale of waterfront lots. Much of that activity has occurred in The Heritage. The data confirms that the addition of a highly amenitized community located on a beautiful piece of waterfront property was a great addition to the lake market.

Roughly half of the sales in The Heritage occurred prior to Wicker Point Golf Club being completed. The other half have sold with The Benjamin Lake Club still under construction. (The lake club is scheduled to open in June of 2025.) Of the over 100 lots already sold, the vast majority either have a custom home project under construction or have a home slated to start in the next 12 months.

The cost of those projects is not included in the sales data above. (We estimate the construction value for homes being built in The Heritage to be in excess of $200,000,000.)

We remain excited about The Heritage and other developments, such as White Oak Landing and Magnolia Cove. As Lake Martin’s largest real estatel broker, optimistic about the overall Lake Martin real estate market. The Fed’s announcement last week of a .5% decrease in interest rates, certain to be followed by more, will provide more opportunity for lake ownership.

To stay informed on the market data and our development activities, reach out to one of our our Realtors^® today.

Note: The metrics above are based on an analysis of sales information derived from data pulled from the Lake Martin Area Association of Realtors^® MLS.