Articles & News
Real estate sales rise to record levels
We have compiled sales data for the 12-month period ending on May 31, 2021, and the market continues its hot streak. The March report noted that residential sales on the lake for the previous 12 months broke the 500-unit barrier for the first time, rising to 503 units. April showed a slight increase at 505 units, and May’s report shows sales have risen again to 511 units.
This result is counter-intuitive given residential inventory is at an all-time low for this time of year with just 64 residential units on the market for sale. There have been, however, more properties listed for sale over that last year (485) than the year prior (421). That means that properties that are “market priced” are selling very quickly instead of sitting in the MLS system waiting for a buyer. Clearly, there are buyers ready to act when newly listed properties come on the market.
Lot sales set new standards
Sales of waterfront homesites have increased dramatically, rising 246% over the same period last year to 180 properties sold. The recent increase in sales is driven by several factors. The first is the lower inventory level for waterfront homes has made building a viable alternative.
The second reason is that developers have delivered an attractive collection of waterfront homesites at just the right time and in just the right places. Sales in The Ridge, Kennebec, and The Willows are great examples of the demand for newly developed lots.
Another important factor is that that some of the existing homes lack modern décor and amenities. Having a custom home built to order is worth the wait for some buyers. In fact, if you will dig a little deeper into the residential numbers, you will note that a large percentage of the residential sales are custom-built, home-and-lot packages. Of the 511 properties noted above, 48 were lot-house-package sales with up-to-date designs and features.
Average prices continue to rise
The average price of residential waterfront properties in May’s report rose 20.7% to $743,037 for all residential property (homes, condos, and townhomes). The average price for single-family dwellings increased 17.8% to $848,213, and the average price for waterfront lots increased 23.8% to $384,401.
What to look for
We expect fewer sales over the next several months due to the lack of inventory in both residential properties and in developed lots. There are just fewer opportunities. A common theme our agents hear from lake property owners who might be interested in upgrading is that they cannot find a replacement property on the lake.
The temptation to take advantage of higher prices and sell is countered by lake property owners’ love of Lake Martin. For potential buyers, that means fewer opportunities. For current owners, that is no surprise; Lake Martin is a great place.
For owners of lake property who might be interested in selling, we recommend you reach out to one of our Realtors® to hear what your property is worth. If you are interested in buying, we recommend you call them as well. Many properties sell before they hit the market to buyers who have an agent working for them.
Russell Lands, for example, continues to patiently develop new waterfront lots with a release in The Ridge next month. To stay abreast with what is new on the market, contact us today.