Lake Martin waterfront home sales up 5.7% from one year ago

On August 19, 2019   /   Lake Martin Real Estate  
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harbor point condos

By ACRE Research

Sales: According to the Lake Martin Area Association of Realtors, waterfront-area residential sales totaled 37 units during June, up 5.7% from 35 sales in the same month a year earlier. Results were down 7.5% from the previous month and 10.2% below the five-year average of 41 closed transactions.

Inventory: Homes listed for sale in the waterfront area during June totaled 306 units, an increase of 10.5% from June 2018’s 277 units and a decrease of 3.5% from May 2019’s 317 units.

Pricing: The Lake Martin waterfront median sales price in June was $598,000, an increase of 31.4% from one year ago and an increase of 20.3% from the prior month. This direction is consistent with historical data (2014-18) indicating that the June median sales price on average increases from May by 2.9%. 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 June was 131 days, a decrease of 5.8% from 139 days in June 2018 and a decrease of 2.2% from 134 days in May.

Forecast: June sales were two units, or 5.7%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 35 sales for the month and actual sales were 37 units. ACRE forecast a total of 140 residential sales in the waterfront area year-to-date in 2019, while there were 159 actual sales in 2019 so far.

ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during May spent an average of 88 days on the market, an improvement of 12 days from May 2018.

NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”

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

On October 8, 2018   /   Lake Martin Real Estate  
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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.

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June home sales on Lake Martin waterfront up 9 percent from May

On August 27, 2018   /   Lake Martin Market News  
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lake martin june 2018 sales

By ACRE Research

Sales: According to the Lake Martin Association of Realtors, waterfront area residential sales totaled 35 units during June, down 22.2 percent from 45 sales in the same month a year earlier. However, June sales were up 9.4 percent compared to 32 sales in May. Results were 14.6 percent below the five-year June average of 41 sales.

For all waterfront area home sales data, click here.

Inventory: Homes listed for sale in the waterfront area during June totaled 277 units, an increase of 1.1 percent from June 2017’s 274 units, and an increase of 1.8 percent from May 2018’s 272 units. June months of supply totaled 7.9 months, a decrease of 6.9 percent from May 2018’s 8.5 months of supply. However, June’s months of supply increased 30 percent from June 2017’s 6.1 months of supply.

Pricing: The Lake Martin waterfront median sales price in June was $455,000, a decrease of 17.3 percent from one year ago and a decrease of 14.2 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the June median sales price on average increases from May by .7 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 June was 139 days, a decrease of 9.7 percent from 154 days in June 2017, but an increase of 21.9 percent from 114 days in May.

Forecast: June sales were seven units, or 16.7 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 42 sales for the month, while actual sales were 35 units. ACRE forecasts a total of 168 residential sales in the waterfront area year-to-date, while there were 148 actual sales through June.

ACRE’s statewide perspective: Alabama and the United States are getting ready for the summer months of real estate. Coming into summer, the spring home-buying season had been significantly affected by very low inventory levels. May residential listings decreased more than 7 percent in the state and decreased 6.1 percent nationwide from one year ago. Residential sales in Alabama, however, increased 8 percent from one year ago, which is impressive considering the 7.3 percent drop in inventory. Home price appreciation heated up with the temperatures as the statewide median sales price increased 10.7 percent from one year ago, while also increasing 7 percent during the first quarter of the year. Home sales prices are expected to continue their upward climb throughout the summer as inventory levels are likely to repeat the declines that were seen during the spring.

NAR’s national perspective: Lawrence Yun, National Association of Realtors chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

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