REALTORS® around the lake agree that 2024 is a challenging year for real estate. The shortage of listings continues as buyers wait eagerly to buy lake property. We have experienced inflated pricing often, multiple offers, and waterfront homes selling for over asking prices. Compared to last year, the lack of available waterfront homes inventory has slowed sales. A lack of quality waterfront lots also caused our sales numbers to drop.
In the first nine months of 2024 we have sold 130 waterfront homes, averaging $821,701 each totaling $106,821,158. The 2024 average price was down 7.78% compared to the same period in 2023. The median sold price of waterfront homes in 2024 was $752,500 compared to $770,000 in the same nine months of 2023, totaling a decrease of 2.27%. The total dollar sales of waterfront homes is down 7.06% in the first nine months of 2024 compared to the same time in 2023.
Offshore home sales this year total $17,037,861 compared to $16,395,649 in the first nine months of 2023 in dollar sales, an increase of 3.92%. The average offshore home sold for $215,669 compared to $221,076 in 2023 during the same time, a decrease of 2.45%.
Waterfront lot sales are down 11.32% in unit sales with 57 sold in 2024 and down 5.79% in dollars sales compared to 2023 sales for the first nine months. The average waterfront lot has sold for $292,566 this year. Offshore lot sales are down 19.24% in dollar sales in the first nine months of 2024 compared to 2023.
Our total market, homes and lots dollar sales in the first nine months of this year total $141,061,769, a decrease 7.35% of the same time in 2023.
All figures are from the Roanoke Valley Lake Gaston Board or REALTORS Multiple Listing Service and do not reflect private sales.
The major contributor to the decrease in sales of waterfront homes is supply. In the first nine months of 2024, we had 198 new listings for waterfront homes compared to 259 for the same time in 2020, pre-pandemic. We have seen an increase in waterfront homes priced over $1M. There is a large decrease in waterfront homes priced under $1M, leaving many buyers out of the market.
The rise in interest rates has contributed to the decrease as well. Currently the 30-year mortgage rate for a primary home is 6.285% and the 30-year rate for a second home is 7.25%. Last month’s Federal Reserve rate cut won’t lower rates as much as we have seen over the summer, in fact mortgage rates are slightly higher since the rate cut. In general, mortgage rates are more closely tied to investor sentiment rather than the Fed’s rate cuts. Mortgage rates move with the bond market, which moves on economic data. The 10-year Treasury Note is inching back up. This is also a benchmark for mortgage and auto loans.
Existing-home sales fell in August, according to the National Association of REALTORS® decreased 2.5% from July. Year-over-year, sales are down 4.2% over YTD August 2023.
“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR Chief Economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
We are seeing the real estate market cooling down at the lake. Like markets everywhere, the Lake Gaston market is local. It changes almost daily, whenever a property sells and/or becomes available. Sales and availability have made our local market quite different from the first quarter of this year. The amount offered for a property six months ago, or even a month ago, is likely different from what their offer would be today.
If you have been thinking about putting your Lake Gaston property on the market now is a great time before interest rates increase more and the economy continues to slow. We have buyers waiting for property priced according to the current market conditions. Give me a call or send me an email, I’ll be happy to give you my opinion of the value of your property.
Barney Watson is the Owner of Lake Gaston Real Estate, LLC and Director of the Roanoke Valley Lake Gaston Board of REALTORS. Cell is 252-532-3274, email is