Market Report: Sales Continue Upward Trajectory

To many, the summer of 2019 was the hottest in recent memory—real estate-wise. Yes, the temps were really up there this year, but compared to the waterfront market results, the weather was a bit on the cool side!

The latest 12-month, year-over-year report is full of good news for Lake Martin property owners. We keep track of a variety of key market metrics, and every category indicates a very hot—and healthy—real estate market. Here is a synopsis for the 12 months ending September 30, 2019, versus the same 12-month period last year:

1. Total residential sales volume – up 10.9%
2. Single family detached sales volume – up 8.5%
3. Condo and townhome sales volume – up 29.3%
4. Waterfront lot sales volume – up 11.5%
5. Residential unit sales up – 11%
6. Inventory levels – improved with 7.54-month supply versus 9.35-month supply last year
7. Residential sales-price-to-list-price ratio increased to 95.3% from 95%*
8. Residential median sales price – increased 13.6%
9. Active residential listings for sale – down 10.42%
10. Active lot listings for sale – down 16.3%

Observations

Looking at the improved metrics above, especially from an ownership perspective, we can make a few observations about the year ahead.

The increased sales volume was impressive despite the decrease in available inventory, which indicates very strong demand for lake property. The increase in sales coupled with decreased supply caused prices to increase, as demonstrated by the double-digit increases in median sales price.

The continued lack of available inventory is likely to drive prices still higher, unless interest rates increase, which will drive up the cost of ownership. Lower lot inventory will likely cause newly developed lots to come on the market in the next 12 months. This new supply will provide exciting ownership opportunities for newly designed and built lake homes.

The July-through-September quarter was a significant improvement in the market over the same period last year. Momentum into the fall and winter period is significantly better than last year, and the year-end results will continue to impress. Lake Martin certainly looks like a wonderful investment. (An investment more fun than your stocks!)

What to watch for

Stay in touch with one of our real estate pros to hear about the latest and greatest additions to the market. Reach them at 256.215.7011, drop by the Discovery Center at Russell Crossroads, or subscribe using the form to the right for real estate updates on our recent and upcoming releases.

*The list price to sales price ratio of 95.3% means that a property listed for $1,000,000 will sell, on average, for $953,000.