An Early Christmas

Lake property owners “appreciate” increased values

By Steve Arnberg, VP Real Estate Sales

I hope you recognize my play on words. The real estate term for an increase in property value is “appreciation.” According to the Google definition, appreciation means an increase in monetary value. If you own Lake Martin waterfront property, you should probably opt for an alternate Google definition, “recognition and enjoyment of the good qualities of something.”

You may wonder why you should be so happy. Let me give all lake property owners an early Christmas present. It’s a big one too—better than a new puppy for sure. In fact, you can purchase a whole bunch of puppies with this present.

How about $91,153 for a Christmas present? I hope you appreciate that!

Every month, we take stock of the real estate market on Lake Martin by compiling data from the MLS of the Lake Martin Area Association of Realtors. Our method is to compile the most recent 12-month period and compare it to the same period in the prior year. I am writing this article in mid-November, so the most recent data was for the 12-month period ending on October 31, 2024.

For this period, the average residential property sales price was $1,240,684. Last October, the average price was $1,149,511, or an increase of 7.9%. That is a pretty good investment, especially when you consider that you can’t go swimming in your stock and bond portfolio. Like an old friend of mine said, Lake Martin is an investment the whole family can enjoy.

A gift that keeps on giving

 This year was not a “once in a lifetime” gift either. The lake has been giving significant increases in property values dating back to 2019. If you have owned your lake place since then, you might enjoy this time where we can “take stock” of your property values. Let’s take a look back in time at annual residential sales prices for waterfront property.

• 2020 was $109,932 over 2019 or 18.6%.
• 2021 was $128,450 over 2020 or 18.3%.
• 2022 was $182,650 over 2021 or 22%.
• 2023 was $136,302 over 2022 or 13.5%.
• 2024 was $648,487 over 2019 or 110%.

 The value of Lake Martin property is resilient. In 2022, the Federal Reserve began to raise interest rates in an effort to tame inflation. Rate increases drove mortgage rates from 3% to well over 7%, and while most of the country has seen significant impacts to property value increases, the lake continues to notch impressive gains.

What is likely to happen next

Given the headwinds that real estate has been under over the last two years, such as a slowing economy and increased interest rates, it doesn’t take a doctorate in economics to predict next year. If the economy improves due to relaxed regulations, and interest rates come down a point or two, that can only mean that more people will be able to buy the lake property of their dreams.

We have noted that available inventory is still well below normal historical levels (138 units now verses 184 in 2019). So it stands to reason that property values will retain their ground and notch an attractive increase.

There are other metrics that I look at (too many for this limited space) that give me optimism for next year’s market. So rather than bog you down in a bunch of data, let’s just say we should appreciate what we have here at Lake Martin.

If you have an interest in the market at Lake Martin, specific questions about our new cabin enclave at Kowaliga, and upcoming releases in The Heritage, please contact one of our Sales Executives at 256.215.7011 or send them an email today.