Market Report: August Sales and Temps Soar!

“Smoking hot” describes more than temperatures on Lake Martin. Waterfront property sales, like the mercury, have really shot up to new highs in August. The University of Alabama Center for Real Estate (ACRE) recently released its report for Lake Martin waterfront property sales for August (click here for the report), and the results are impressive.

As expected, August unit sales dropped from July, which is the peak month for waterfront property, but all metrics are greatly improved over August of last year. How good was August this year compared to last year? Here is a rundown:

• Sales increased to 38 units—a 5.5% increase and the best August for the past six years
• Median sales price increased to $567,500 (+24.9% over July) which is an increase of 17.8% over August 2018.
• Average sales price increase to $639,999 which is 23.7% over last August
• Properties sold faster—on average in 155 days versus 224 days last year. (178 days is the five-year average.)
• Inventory reduced 14% compared to August 2018. (Smaller supply with equal or greater demand drives up values.)
• Supply of property dropped from an 8.7-month supply to a 7.1-month supply.

Twelve-month rolling averages equally impressive

If you follow our reporting, you know that we like to look at year-over-year numbers since a single month does not make a trend. Our tracking of MLS numbers through the 12 months ending in August is equally impressive. Virtually every category is “green for go.” Here is a sampling:

• Gross dollar volume for waterfront single family homes, condos/townhomes and lots are all up over last year.
• Unit sales for all property types are up—condos by 10.4% after lagging for much of the year.
• Sales-price-to-list-price ratio has increased to 95.2%.
• Median price has increased as much as 8.8%.
• Inventory of all types is at the lowest level in many years.

What to watch for

We noticed, likely due to much lower interest rates, a real increase in waterfront property sales in May. Normally, lower inventory levels tend to constrain sales volume. What has occurred this summer is that available properties sold faster and for better prices. This resulted in higher sales—a trend that is likely to continue through the end of the year.

New property offerings, such as new construction and newly developed lots, will likely see greater demand. This new development will provide a larger market and more opportunity in the future. Russell Lands is responding to this increased demand by developing or growing its lakefront neighborhoods.  Both The Willows and The Ridge will expand this winter.

To stay abreast of everything that we have coming online in the next six months, contact one of our Realtors^®, Rhonda Watson or Emily McDaniel at 256.215.7011 today.