Lake Martin waterfront’s August median sales price sees 14 percent boost from 2017

46 forrest way lake martin al

By: ACRE Research

Sales: According to the Lake Martin Association of Realtors, waterfront-area residential sales totaled 36 units during August, down 2.7 percent from 37 sales in the same month a year earlier. However, August sales were up 24.1 percent compared to 29 sales in July. Results were 2.3 percent above the five-year August average of 35 sales.

For all waterfront-area home sales data, click here.

Inventory: Homes listed for sale in the waterfront area during August totaled 314 units, an increase of 27.1 percent from August 2017’s 247 units, and an increase of 6.1 percent from July 2018’s 296 units.

Pricing: The Lake Martin waterfront median sales price in August was $481,562, an increase of 14.4 percent from one year ago and a decrease of 29.2 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the August median sales price on average increases from July by 32.2 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days spent on the market (DOM) by waterfront homes that sold during August was 224 days, an increase of 29.5 percent from 173 days in August 2017, and an increase of 62.3 percent from 138 days in July.

Forecast: August sales were six units, or 14.3 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 42 sales for the month, while actual sales were 36 units. ACRE forecast a total of 246 residential sales in the waterfront area year-to-date, while there were 213 actual sales through August.

ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased by 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.

NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”

The Lake Martin Waterfront Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.

Lake Martin area August home sales increase 6.7 percent from 2017

By: ACRE Research

Sales: Lake Martin area residential sales totaled 80 units during August, up 6.7 percent from 75 sales in the same month a year earlier. August sales were up 35.6 percent compared to 59 sales in July. Results were 31 percent above the five-year August average of 61 sales. Two more resources to review: Quarterly Report and the Annual Report.

Inventory: Homes listed for sale in the Lake Martin area during August totaled 569 units, an increase of 32.3 percent from August 2017’s 430 units, and an increase of 13.6 percent from July 2018’s 501 units. August months of supply totaled 7.1 months, an increase of 24.1 percent from August 2017’s 5.7 months of supply. However, August’s months of supply decreased from July’s 8.5 months of supply.

Pricing: The Lake Martin area median sales price in August was $238,250, a decrease of 5.8 percent from one year ago and a decrease of 3.5 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the August median sales price on average increases from July by 24 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in August was 163 days, a decrease of 7.9 percent from 177 days in August 2017 and an increase of 23.5 percent from 132 days in July.

Forecast: August sales were four units, or 5.3 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 76 sales for the month, while actual sales were 80 units. ACRE forecast a total of 473 residential sales year-to-date, while there were 459 actual sales through August.

perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased by 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.

NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”

7 Promising Signs the Home You’re Buying Will Have Good Resale Value

home buying good resale value

By Jamie Wiebe

While it might seem premature to think about selling a home before you even buy it, it’s important to remember that a house is an investment. And in an ideal world, investments make money—not lose it.

That’s why resale value should be an important consideration when house hunting. No, it shouldn’t supersede your must-have requirements (if you demand 20 acres and lakefront access, prioritize that). But if you do your best to predict how the house you’re buying—and the neighborhood it’s in—will appeal to future buyers, then future-you will be a whole lot happier. And possibly richer.

Considering resale value “also saves the buyers a lot of money, as they will not need to spend big on renovations or updates,” says real estate agent Lukasz Kukwa.

But one caveat: Good resale value is never a promise.

“It is almost impossible to guarantee that a home will retain its full resale value, as the local market and economic factors have a large effect on the housing market,” Kukwa says.

In short: Resale value is anybody’s guess if the economy tanks. But there are some indicators to watch for that could be the difference between barely squeaking by or coming out ahead. As you hit the house-hunting trail, look for these promising signs that suggest your investment will be a smart one.

1. The neighborhood’s hopping…

Pay attention to your surroundings when house hunting. Is the neighborhood walkable? Or is a trip to the grocery store so onerous it requires snacks for the road? Meanwhile, are there restaurants nearby for those nights you simply just can’t?

“If you buy in an area that is not well-developed and doesn’t have good infrastructure—like shopping close by—you will not have a high rate of return on the home,” says Realtor® Patricia Vosburgh.

“The more amenities, the higher chances the home will sell faster and for more money,” she explains.

Even if there are development plans in the works, don’t bank on that to prop up property values; construction can stall or be scrapped entirely. When calculating your home’s future worth, focus on what exists now.

2. … but the street itself is quiet

Buying a home is a study in contrasts: You want a gorgeous kitchen—and good delivery options, too. You need five bedrooms—and a decent hotel around the corner because no way is your mother-in-law staying with you. You want things to be hopping—but not in your backyard.

“We advise against buying on a busy street or purchasing a home surrounded by commercial properties nearby,” Vosburgh says.

Not that there aren’t buyers—possibly even you—who love living in the middle of the action. But before you buy the bungalow next to your favorite watering hole, consider that future buyers might not be so keen.

3. The home’s systems are in good shape

Many people consider return on investment to be the sum of a simple calculation: Will the home sell for more than you paid?

But it’s a little more complex than that. You have to factor in how much you’ll spend on the home while living there—even if the market becomes red-hot. And if the home’s vital components are falling apart, you’ll be spending a lot.

Your inspector can give you a rundown of your future home’s health, but keep a close eye on the roof, water heater, HVAC system, windows, and foundation. Pay attention to the plumbing and electrical, too. A problem with any one of these major systems can require a costly repair—and take a bite out of your payday.

“When these items are new or in good standing, that’s a great sign,” Kukwa says.

4. The schools are great

If you’re child-free, this one might seem entirely irrelevant. But a word to the wise: If you think you might someday sell your home, you’ll want to factor in the school district before you buy.

“Even if buyers personally don’t have children, for resale it is imperative that they buy in a great school zone,” Vosburgh says. (You can check school ratings at GreatSchools.org.)

Just make sure to do your research and determine where the home sits in relation to the school district boundaries.

“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” explains Tina Maraj, a Realtor with Re/Max North Orange County in Fullerton, CA. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”

5. The light is inspiring

“Any apartment in any neighborhood that has good light will sell—and will always sell,” says New York City broker Noemi Bitterman.

With good light, “there is always a good feeling—a feeling of embracing and belonging,” she continues. “When [a home] is dark, no matter how nice and new it is, it doesn’t feel inviting, it takes a much longer time to sell, and the price reflects the lack of light.”

Whether you’re shopping for a condo, apartment, or house, visit the property at different times of the day to see how the light affects the space.

6. The floor plan is family-friendly

Again? asks the child-free reader. Must all my housing decisions be dictated by families? No. But if you’re hoping to sell that home for a profit down the road, you should keep kid-friendliness in mind.

“Look for a home with a floor plan that will appeal to families,” says broker Kris Lindahl. That means at least three—if not four—bedrooms on the same level, an open concept kitchen, and at least one bathtub.

And always pay attention to the number of bathrooms. You want “enough to avoid fights in the morning,” Lindahl says.

On a related note: No matter how much you love that gloriously unique Frank Lloyd Wright spiral house, it’s often best to stick to a more traditional floor plan if you’re worried about selling later.

“Buying a home that is too quirky or has very untraditional features can result in a decreased ROI and smaller pool of potential buyers in the future,” Kukwa says.

7. The community is restrictive

Homeowners associations can be a pain in the butt—the irritating restrictions, the monotonous meetings, the monthly dues that you’re not always sure you can account for.

But an HOA can actually be helpful, at least when it comes to resale value. That’s because HOAs usually keep everyone in line, preventing your neighbors from letting weeds take over their lawn, painting their houses bright pink, or permanently parking an RV in the middle of your street—all things that could ding the value of your home.

Of course, purchasing an HOA-regulated home isn’t for everyone. But if you’re seriously concerned about the resale value of your new home, covenants and restrictions could keep you flush.

Wendy Helfenbaum contributed to this story.

Lake Martin area homes selling 24 days faster on average compared to a year ago

By: ACRE Research

Sales: Lake Martin area residential sales totaled 59 units during July, up 34.1 percent from 44 sales in the same month a year earlier. July sales were down 18.1 percent compared to 72 sales in June. Results were 15.6 percent above the five-year July average of 51 sales. Two more resources to review: Quarterly Report and the Annual Report.

Inventory: Homes listed for sale in the Lake Martin area during July totaled 501 units, an increase of 17.1 percent from July 2017’s 428 units, and an increase of 6.1 percent from June 2018’s 472 units. July months of supply totaled 8.5 months, a decrease of 12.7 percent from July 2017’s 9.7 months of supply. However, July’s months of supply increased from June’s 6.6 months of supply.

Pricing: The Lake Martin area median sales price in July was $247,000, a decrease of 19 percent from one year ago and an increase of 11.8 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by .3 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in July was 132 days, a decrease of 15.4 percent from 156 days in July 2017 and a decrease of 10.2 percent from 147 days in June.

ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.

NAR’s national perspective:  During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

The Lake Martin Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.

Lake Martin waterfront home sales up in July from a year ago

sunset lake martin

By ACRE Research

Sales: According to the Lake Martin Association of Realtors, waterfront area residential sales totaled 29 units during July, up 26.1 percent from 23 sales in the same month a year earlier. However, July sales were down 17.1 percent compared to 35 sales in June. Results were 9.3 percent below the five-year July average of 32 sales.

For all waterfront area home sales data, click here.

Inventory: Homes listed for sale in the waterfront area during July totaled 296 units, an increase of 13.4 percent from July 2017’s 261 units, and an increase of 6.9 percent from June 2018’s 277 units.

Pricing: The Lake Martin waterfront median sales price in July was $680,000, an increase of 54.5 percent from one year ago and an increase of 49.5 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 21.6 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days spent on the market (DOM) by waterfront homes that sold during July was 138 days, a decrease of 16.4 percent from 165 days in July 2017, and a decrease of .7 percent from 139 days in June.

Forecast: July sales were seven units, or 19.4 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 36 sales for the month, while actual sales were 29 units. ACRE forecast a total of 204 residential sales in the waterfront area year-to-date, while there were 177 actual sales through July.

ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.

NAR’s national perspective:  During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”