by: Barney Watson - Broker Owner - Lake Gaston Real Estate LLC
In the first three months of 2021 our total closed sales, land and homes totaled $48,697,800. Compared to $35,667,900 over the same three months of 2020, equals an increase of 36.53%. 2021 first quarter closed sales on waterfront homes are up 32.80% (in dollar sales), compared to the same period last year. We closed on 57 waterfront homes this year compared to 56 last year. The average sold price of waterfront homes in 2021 was $650,763, an increase of 30.23% over the same period in 2020. The median sold price of waterfront homes in 2021 was $569,000 compared to $460,000 in 2020, an increase of 23.7%. Offshore homes sales (in dollars) have also increased 23.89% this year compared to last year. We closed on 27 offshore homes this year. Waterfront lot sales (in dollars) are also up 77.0% from last year. All sales numbers are from the Roanoke Valley Lake Gaston Board of REALTORS® MLS and do not reflect private sales.
At the end of the first quarter of this year, waterfront homes averaged 115 days on the market, compared to 155 days for the same period in 2020. (Days on the market begins with the MLS listing date and ends with the closing date). There were 68 waterfront homes that went under contract the first quarter of 2021, compared to 57 for the same period last year.
The National Association of REALTORS® (NAR) reports Existing-home sales fell 6.6% in February to a seasonally adjusted annual rate of 6.22 million, but sales are still 9.1% higher than last year. The median existing-home sales price rose to $313,000, 15.8% higher from one year ago, with all regions posting double-digit price gains. As of the end of February, housing inventory remained at a record-low of 1.03 million units, down by 29.5% year-over-year – a record decline. Pending home sales decreased by 10.6% in February with all regions showing a decline. After eight consecutive months of year-over-year gains, pending home sales decreased by 0.5% from a year ago.
Our inventory of quality homes in the Lake Gaston market is also at record lows. A recent blog by the Virginia Association of REALTORS stated available inventory was down 50% from a year ago and 66% from five years ago. I believe our market is no different.
Springtime always brings increased activity to our area. That includes folks wanting to look at properties for sale! We are in a seller’s market, currently buyers outnumber available homes. If you have been thinking of selling your Lake Gaston property, now is a great time! Contact a full-time, REALTOR® with working knowledge of the Lake Gaston market. Ask them to provide written facts and figures on properties sold and listed in this area. When listing your property, price it according to comparable ones on the market. Homes priced correctly and in good condition usually go under contract fast and often with multiple offers.
Today, a local lender is quoting 2.875% interest on a 30-year mortgage and 2.375% on a 15-year, down slightly from the same period last year. Mortgage rates remain low which are keeping buyer’s interest alive.
The cost of building materials and labor cost have significantly added to the cost of building a home. Lumber prices have almost tripled in the last twelve months as have many other building materials. According to The National Association of Home Builders, it now cost $25,000 to $40,000 more to build a typical home just in material cost.
COVID has changed our real estate market here at Lake Gaston bringing more buyers wanting a change of environment. Working from somewhere besides the office has now become the norm. We are still optimistic about the 2021 selling season, hopefully with the arrival of spring, we will see an increase in available inventory..
Barney Watson is Owner/REALTOR of Lake Gaston real Estate LLC and is 2021 State Director for the Roanoke Valley Lake Gaston Board of REALTORS®. His cell is 252-532-3274 and website is www.lakegastonrealestate.com.