In the first six months of 2024 our total closed sales, land and homes have totaled $84,622,159 down from $124,077,151 in the same period of 2023 or a decrease of 31.8%. Closed sales on waterfront homes were down 23.48% in dollar sales in the first six months of 2024 over the same period last year. We have closed 74 waterfront homes this year compared to 88 last year. The average sold price of waterfront homes in 2024 is $825,944 down 9.0% over the same period in 2023. The median price of waterfront homes sold in 2024 was $775,000, up slightly from $762,500 last year or a 1.64% increase.
This year, 49 offshore homes have sold, and their total dollar sales are up 4.84% this year compared to last year. Waterfront lot sales are up 15.75% in dollar sales from last year, unit sales were flat.
All sales numbers are from the Roanoke Valley Lake Gaston Board of REALTORS® MLS and do not reflect private sales.
Across the US, existing home sales slightly declined in May as the median sales price climbed to a record high, according to the National Association of REALTORS®. Year-over-year, sales are down 2.8%. "Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months," said NAR Chief Economist Lawrence Yun. "Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions." “The median existing-home price for all housing types in May was $419,300, the highest price ever recorded and an increase of 5.8% from one year ago ($396,500). All four U.S. regions registered price gains.”
"Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers," Yun added. "The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning."
Pending home sales in May slipped 2.1%, according to the National Association of REALTORS®. Year over year, pending transactions were down 6.6%.
“The market is at an interesting point with rising inventory and lower demand,” said NAR Chief Economist Lawrence Yun. “Supply and demand movements suggest easing home price appreciation in upcoming months. Inevitably, more inventory in a job-creating economy will lead to greater home buying, especially when mortgage rates descend.”
NAR predicts mortgage rates will remain above 6% in 2024 and 2025, even with the Federal Reserve cuts to the Fed Funds rate.
Mortgage rates today were 6.375% for a 30-year fixed-rate loan on a primary home. On a second-home or vacation home rates were 6.990%.
The Lake Gaston real estate market is cooling down with waterfront homes sales down 16% in units and total dollars sales down 23.5%. It is common for buyers to borrow a portion of the purchase price in our area.
According to real estate firm Redfin, second-home & vacation home sales are down 40% from 2022 levels and down 65% from the height of the boom in 2021 nationally. “A lot of people who were buying second-homes were using them to generate income from the short-term vacation rental market. The last few years, what we’ve seen is there is such a big supply of Airbnb’s that owner’s aren’t making as much from the vacation rental market,” says Chen Zhao. Senior manager of economics at Redfin. Also, some areas have added new restrictions to short-term rentals as well as the increase in sales prices. Another consideration to owning a second-home is the increasing cost of homeowner’s insurance.
Our inventory of quality homes in the Lake Gaston market continues to be low. Now is a good time to list your home if you have considered selling. List your home before the market cools off even more. Contact a full-time REALTOR® with working knowledge of the Lake Gaston market. Ask them to provide written data on properties sold and listed in this area, such as in my articles. When listing your property, price it according to comparable ones on the market as well as recently sold properties. Remember, buyers have more information available to them when searching for lake home properties than ever before, they pass over properties that are priced above the market value. Overpriced properties sit on the market and become stale. Eventually selling at a lower price because of high listing price at the start.
More people are enjoying the Lake Gaston area. We see growth in both residential and commercial development. Lake Gaston Realtors love helping people find their dream home or business at the lake!
Barney Watson is the owner of Lake Gaston Real Estate, LLC and he is Director for the Roanoke Valley Lake Gaston Board of REALTORS®. His cell is 252-532-3274 and his website is www.lakegastonrealestate.com.